Read more about the Indicator and the Robot EA below
I have come up with a new forex indicator and a robot (EA) based on this indicator that is showing excellent results. So far tested on AUD-NZD 4 hours chart and it grew the test account from 10K to over 30K in the span of 7 years. The best part is that it worked very well during the infamous 2008-09 market crash also. Most of the EAs I have seen crashed and burned during this period since there was so much of market uncertainty but this one has raked in profits during this entire period of financial meltdown.
I came across this indicator when I was doing some testing for another EA based on CCI (Commodities Channel Index). The key is not when the robot creates orders, it is how it harnesses the market movements to ensure profit. It has a unique way of moving the take-profit level such that your chances of making profit are high.
Here are the results achieved by running the robot on 4 hour chart on AUD-NZD pair from 2007 April till 2013 Oct. Click on the image below to see the entire MT4 statement.
This indicator is based on two things – 1 – CCI value of the previous two sticks and 2 – Stick size of the previous stick.
Buy order is created when:
- The CCI value of the last two sticks is below the lower limit line (see the screenshot below)
- The previous stick is such that open is greater than close and
- No previous order is already created on the current stick (in other words, one order per stick allowed)
(Click on the image above to see in bigger size)
Sell order is created when an exact mirror image of this is there.
Exiting the trade
Now comes the fun part. The trades are without a take profit or stop loss. However, at first the take profit is assumed as open of the previous stick. In other words, the trade is closed if the current price goes above the open of the previous stick. However, when the price moves in negative direction, the take profit is updated to the high (in case of buy order and low in case of sell order ) of the previous stick. This in turn gives you what I call a trailing take profit. However, take profit value is changed only if the current stick closes below the original order open price.
This exit criteria deployed under this EA is the key to success. It gives very impressive 70% success and best part is the average winning trades are almost equal to average losing trades in size.