ADX Trend Strength EA Template for MetaTrader 5
The ADX (Average Directional Index) is one of the most respected trend-strength indicators in technical analysis. This free EA template uses ADX to confirm strong trends and enters on DI+/DI- crossovers, ensuring you only trade when the market is truly trending. It includes ATR-based risk management optimized for the London session. Build it in AlgoStudio without coding, customize the parameters, and export a production-ready MQL5 Expert Advisor in minutes.
What Is an ADX Trend Strength Strategy?
An ADX trend strength strategy uses the Average Directional Index to measure how strong a trend is before entering a trade. The ADX line ranges from 0 to 100. Values below 25 indicate a weak or non-existent trend (range-bound market). Values above 25 indicate a strong trend worth trading. The strategy combines ADX with the DI+ and DI- lines to determine trend direction \u2014 DI+ above DI- signals an uptrend, and DI- above DI+ signals a downtrend.
This is a trend-following approach that solves one of the biggest problems in automated trading: entering during choppy, directionless markets. By requiring ADX to exceed a threshold before taking any trade, the strategy naturally avoids the whipsaw periods that destroy most trend-following systems. The trade-off is fewer trades overall, but significantly higher quality entries.
The ADX indicator was developed by J. Welles Wilder Jr. in 1978 and remains one of the most widely used tools among professional traders. It works across all liquid markets and timeframes, making it a reliable foundation for any trend-following EA.
How This EA Template Works
The London session filter (08:00\u201317:00 GMT) ensures you only trade during the most liquid hours, when major forex pairs have the tightest spreads and trends are most reliable. ATR-based stop losses adapt automatically to current market volatility \u2014 wider stops in volatile conditions, tighter stops in calm markets.
The dual requirement of ADX above the threshold AND a DI crossover creates a high-quality entry filter. Many false signals are eliminated because the strategy ignores DI crossovers when ADX is below 25, meaning the market has no directional conviction. This produces fewer trades but each entry has a higher probability of success.
Default Parameters
These defaults work well on trending pairs (EURUSD, GBPUSD, USDJPY) on H1. All parameters are exported as input variables so you can optimize them in the MT5 Strategy Tester.
| Parameter | Value | Type |
|---|---|---|
| ADX Period | 14 | ADX |
| ADX Threshold | 25 | ADX |
| Stop Loss | 1.5x ATR(14) | ATR-based |
| Take Profit | 2:1 R:R | Risk-reward |
| Session | London (08:00–17:00 GMT) | Timing |
| Max Trades/Day | 3 | Risk |
| Position Sizing | 1% risk per trade | Risk |
How to Build This EA Without Coding
1. Create a new project in AlgoStudio
Sign up for free (no credit card required) and click “New Project”. Name your project “ADX Trend Strategy” and open the visual builder canvas.
2. Add timing and indicator blocks
Drag a Trading Sessions block onto the canvas and select the London session (08:00\u201317:00 GMT). Add an ADX block \u2014 set the period to 14 and the threshold to 25. The ADX block provides the ADX line, DI+, and DI- values automatically. Connect the ADX block to the timing block.
3. Add trade execution and risk management
Add Place Buy and Place Sell blocks. Connect a “DI+ crosses above DI- AND ADX > 25” condition to the Buy block, and “DI- crosses above DI+ AND ADX > 25” to the Sell block. Add Stop Loss (set to 1.5x ATR with period 14), Take Profit (set to 2:1 risk-reward ratio), position sizing (1% risk per trade), and Max Trades Per Day (3).
4. Export, backtest, and optimize
Click Export to generate a .mq5 file. Load it into MetaTrader 5 and backtest on EURUSD H1 with at least 2 years of historical data. Use the MT5 Strategy Tester optimizer to find the best ADX settings \u2014 try periods from 10\u201320 and thresholds from 20\u201335. Demo trade for 1\u20133 months before going live.
Optimization Tips
Adjust the ADX threshold for your market
The standard threshold of 25 works well across most pairs, but highly volatile pairs like GBPJPY may produce better results with a higher threshold of 30. Less volatile pairs may benefit from a lower threshold of 20. The key is to ensure the threshold filters out enough noise without eliminating valid trends.
Combine with a Moving Average for direction confirmation
ADX tells you trend strength but the DI crossover can sometimes lag. Adding a simple Moving Average (e.g., 50 EMA) as a directional filter \u2014 only take buy signals when price is above the 50 EMA and sell signals when below \u2014 can improve entry timing and reduce false signals during trend transitions.
Watch for ADX turning points
An ADX above 25 and rising indicates a strengthening trend, which is the best time to enter. An ADX above 25 but falling indicates the trend is weakening, and new entries are riskier. Consider adding an ADX slope filter \u2014 only trade when ADX is both above the threshold and rising \u2014 for higher-quality signals.