Retorno à Média | Vilela One | Robô Trader para Metatrader 5 (MT5) - YouTube

People usually ask me if it's possible to make a "Setup X" or a "Setup Y" on One.

But, by far, what is most asked

is that if it's possible to make "Mean Reversion".

Since these terms are a bit generic,

it doesn't say the average type or the band moving type,

the unit of measurement type to measure the band moving.

So it's a little hard to answer "Yes or No".

In general, yes, it's possible. Including several different ways.

On this video, I'll work on all those possible ways of making

"Mean Reversion" inside One.

Let's go.

I'll start with one of my favorite indicators:

Bollinger Bands.

The first thing I'll do is right-click here,

then at "Predefined",

to make sure that any setting I may have set before on One

will be eliminated.

So I come here on "Use?" and I'll set "As a Signal",

and I'll run a test.

This is Bollinger Band Setup running on our chart.

It works the following way:

When there is a closing over the superior band,

it goes short.

When there is a closing under the inferior band,

it goes long.

I'll pause here so we can look at our indicator's components.

It consists of a central line,

which is nothing more than a "Simple Moving Average",

a superior band,

which is located upward at a distance of two standard deviations,

and an inferior band,

located downward at a distance of two standard deviations.

So the Bollinger Band Setup is a "Reversal Average" Setup,

that operates when our price closes,

at a distance of two standard deviations from our "Simple Moving Average",

from our "Central Average".

Since it's a "Reversal Average" Setup,

I guess you'd like to close the position when it reaches the "Central Average".

For that we have this option here: "Close Operations at Central Band?",

we set it as "Yes". Let's run a test again.

Now every time the price closes over the central band

and it is long, it will close the position.

And every time it closes under the central band

and it is short, it will close the position.

Since it's a "Mean Reversion" setup

and not a "Closing from Certain Distance" setup,

I guess that other thing you'd like to do

is to let it make an entry as soon as it reaches the average,

and don't wait for it to close.

For that, the One has this option over here.

"Analyze at each tick?" "Yes."

Let's run a new test.

Done. Now a simple touch on either superior or inferior band

is enough for it to make an entry.

And a simple touch at the central band is enough for it to make an exit.

Don't want to measure the distance in standard deviation? Fine.

Let's turn off our Bollinger Band.

And let's turn on our "Keltner Channel".

Keltner Channels are the Bollinger Bands

substituting the standard deviation for the average amplitude of the bars.

We have a Keltner Channel of 20 periods,

then we'll analyze the last 20 bars, the amplitude of those 20 bars.

We'll do the average for them,

and this will be the distance that both superior and inferior bands

will be from our "Simple Moving Average", which is the one in the center.

So this is exactly the same logic only changing the unit of measurement

from standard deviation to average amplitude of the bars.

I'll turn Keltner off so that we can analyze another option:

"VWAP Bands"

Let's set it to run and do an analysis.

This is "VWAP Bands".

There's a VWAP on the center, which is a weighted average

of all tradings executed during the day.

The volume operated at each price is taken into consideration.

Upward and downward, it also has a standard deviation,

just as Bollinger Band does,

but it calculates the standard deviation separately.

How much the price varies upward the band and how much it does downward.

That's why it has this distortion and why the bands spread out

in different distances upward and downward.

Other option on "Band Moving Average".

Don't you want a VWAP? Fine. Let's turn it off.

"No".

Let's go to...

"Envelopes".

Let's turn the Envelopes on and let's run a test.

This is the "Envelopes".

We have again a "Central Average"

and two bands spreading out from this average,

but now it's spreading in percentage.

From all the indicators we've seen here,

this is the one that gives us more options,

for example, we can choose the "Average Type".

It can be "Simple", "Exponential", "Smoothed" or "Linear-weighted".

And the distance calculation may be either in "Percentage" or in "Points",

given that this last option is only available on version 5.0.2.

If you don't find this option,

download the EA again from the website "Vilela.One".

Let's set our bands up so they'll be in a distance of 150 points.

I'll also set them up to close the operations on the central band.

And let's run one more test.

This is our "Band Moving Average" Setup with a "Reversal Average".

It executes an operation every time the price spreads out

150 points from the "Central Average".

We've set this up using the indicator "Envelopes" on "Points" mode.

We've also set One up to analyze "Tick by Tick",

so that it doesn't wait for the closing out of the band to operate,

neither wait for the closing to be over or under the central band to close.

The simple touch executes the operation.

Even though, as I've already mentioned, "Mean Reversion" is something abstract,

something subjective that can mean a lot of things,

I think most of the time that's what one wants to say,

one searches for this specific Setup.

This video was about "Mean Reversion".

If you have doubts, leave a comment.

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subscribe to the channel down here. Thanks. See you.