MT5 ships with the Envelopes indicator. This indicator allows you
to create equidistant bands from a moving average by specifying a
“deviation.” Unfortunately, the deviation is an arbitrary number.
You might determine that 0.220 works well to contain 95% of close
prices for USDCHF,H1, but when you change the period to H4, most of
the bars are now outside the bands.

So, I created this self-tuning indicator. Instead of specifying a
percent “deviation,” you specify the percent of bars you wish to
“poke through” the bands. Using the above example, you could
specify that you want 5% of bar closes within 200
bars to poke through the bands. That is:

• Percent Bars Outside = 5

• Tuning Method = Close

• Tuning Period = 200

Percent Bars Outside = 5

Tuning Method = Close

Tuning Period = 200

When you switch from H1 to H4, or even to M30, the bands will
always contain 95% of closes. You can also switch from EURUSD to
GBPJPY without a hitch.

• Bands are always equidistant from the center moving
  average, but bands are not a fixed distance for all bars (as they
  are with the MT5 Envelopes indicator).

• The upper and lower band values are calculated from the
  last “full” bar. That is, bands are not calculated each tick.

• Upper and Lower band values are not re-painted on the
  display for new calculations. Once calculated, band values are
  displayed and not changed. Internal calculations do re-calculate
  band values when fitting the 5% (example) criterion; however, these
  internal calculations are not displayed. Just remember: the
  displayed upper and lower band values are correct only looking into
  the past, i.e. to the left of the bar in question.

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Bands are always equidistant from the center moving
average, but bands are not a fixed distance for all bars (as they
are with the MT5 Envelopes indicator).

The upper and lower band values are calculated from the
last “full” bar. That is, bands are not calculated each tick.

Upper and Lower band values are not re-painted on the
display for new calculations. Once calculated, band values are
displayed and not changed. Internal calculations do re-calculate
band values when fitting the 5% (example) criterion; however, these
internal calculations are not displayed. Just remember: the
displayed upper and lower band values are correct only looking into
the past, i.e. to the left of the bar in question.

Do not download this product if
you have a Mac.

Wine doesn’t support the Market tab. Do not download this
product if you do not have a Markets tab in MT5.

• Auto-tuning on any period or symbol

Auto-tuning on any period or symbol

Center MA period – This specifies the period of the
center moving average, e.g. 10, 12, 14.

MA Method – This specifies the method of the center
moving average, e.g. EMA, SMA, etc.

Applied Price – This specifies the Applied Price of the
center moving average, e.g. PRICE_CLOSE.

Tuning Period – This specifies the lookback
period for tuning. It should be considerably longer than the MA
period. I typically use 200; but you could make this value something
like 252 (# of trading days in a year) or 120 (# of trading hours
within a week). Add multiple versions of this indicator to the same
chart, varying this number, to get a sense of what it does. The
larger the number, the more calculations are necessary. If speed is a
concern, like on an M5 chart, try changing this to 100. Lesser
values, like 50, work—but the resulting bands are very different
from the MT5 Envelopes indicator.

Tuning Method – This
specifies if close or high/low prices are used to determine the
percent of bars that poke through the bands.

Percent Bars Outside –
Specifies was percent of bars poke through the upper and lower bands
based upon the Tuning Method. Obviously, High/Low will have slightly
wider bands than Close. I typically use 5% for this.

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