This has been coming together for years. I feel the most confident trading this method than I have with any previous incarnation. In the truest sense of the word, this is the evolution of my trading methodology.
First we need to set up the template. We require a few MT4 indicators. We need to use MT4 since we are using a script. Apparently MT5 does not natively support scripts--which seems absurd, but anyways..
Use this demo if you do not have your own MT4 feed. Hands down the most comprehensive MT4 feed available. Commodities, Futures, World Indicies. I would not endorse actually trading with them, they are a little shady on fees.
Once you have your broker feed set up. Install these indicators in the correct folder. In my case this is: Program Files/Broco Trader/experts/indicators.
Now you have to set up the time for the ant-GUBreakout_V.0.4.2.mq4 file. This is somewhat subjective but the main purpose is to start it at the beginning of the Tokyo session and end it about an hour or so before London. This creates a nice opening range to trade off.
The main idea with meantrades is that we are seeking balance in the markets. We expect market prices to revert to their "mean" over time. Some people prefer to trade breakouts and that is fine, I prefer a value oriented approach.
It is counterintuitive but suits me fine. When prices are out of line I want to be looking for a reversal.
We are buying when prices are too cheap and we are selling when prices are too high. Simple enough. Now let's look at how we seek this out.
The main indicator to determine value in this case is fiboncacci extensions. When prices reach the outer range of the ORB or opening range breakout, we are looking for reversal trades.
We do not look at price alone, we also employ a very special script to determine when prices are ready to reverse. We use the constant range bars script which is available for download on this website. Please note it is not free. If you do not wish to invest in it at this time you can apply the template to a 5 minute chart with similar results. The main difference is the trend will reverse much faster and you will not be able to hang on for the ride quite as easily as you can with constant range bars. I am not a paid affiliate of the site but I can vouch for it's services. Enough said.
So what we are using in this template is:
heiken ashi (built in to the metatrader platform)
opening range (settings should be 12am to 5am GMT)
fibonacci extensions (built in to the metatrader platform)
constant range bars (you need to purchase this script, there is no substitute for it)
If you like the appearance of my screenshots, you can grab the template here.