The concept behind the SmoothingAverage expert advisor is to use the trending characteristics of the S M A to identify a trading range and direction, and then place trades when the price is trading in a band defined by the S M A. The expert advisor expects the price to trade within a range defined the Smoothing user parameter of the S M A.
It identifies a trading band of Smoothing points above and below the current price and places reversal trades when the price reaches outside this band.
If there is no open trade, and the price is below the S M A plus Smoothing points, a SELL trade is opened for the specified lots. On the contrary if the price is above the S M A minus Smoothing points, a BUY trade is opened for the specified lots.
This expert advisor uses identical exit management whereby a SELL trade is closed if the price reaches above the SMA pus Smoothing points, or, closing a BUY trade when the price falls below SMA minus Smoothing points.
It’s always advised to use any E A or Indicator on Demo account first and use it on live account after confirmation of the desired results of the E A or Indicator.