Simple but effective EA that trades based on daily stick sizes – free to try

 

:: Introduction :: Key features :: Testing results and Proofs :: Download Demo Version :

Introduction:

This trading strategy is based on very simple principle – every currency pair goes up and down – in other words, what goes up must come down and vice-versa. It sounds to simplistic and possibly a useless principle but the strategy employed here is exactly that. The assumption is that if a currency pair has gone up, it will come down – if not the same amount but at least fraction of it. My EA is based on this simple but what is proving to be a very lucrative strategy. It uses the daily stick sizes to decide entry points and direction of entry. It waits for a pre-defined time for profit or quits. It cannot get any simpler than this but results it is giving are simply amazing.

Key features:

Here are some of the key features of my EA:

  • This EA has consistently shown very high rates of return and works on almost all currency pairs (see testing results section for more details).
  • It works on the basic principle of diversification – so expect best results only when you run it on multiple currencies simultaneously. Running on only one or few currency pair(s) is not advisable.
  • This EA does not use any sort of hedging and is perfectly trader platform friendly – very low risk of getting banned.
  • The EA works on Daily sticks charts. It has not worked well on shorter time frames.
  • This EA employs a clever trailing stop-loss mechanism to ensure profits on majority of the trades.
  • This is a very light-weight EA that does not take up too much of the CPU power or any other resources. You have very little risk of getting banned from your trading platform.
  • This EA opens mostly 1 order per day per pair so there is no risk of getting blacklisted for too many orders and too many order modifications by the EA. Most of the trading platforms don’t like EAs that create too many orders and too many order modifications – this EA is perfectly safe from that perspective.
  • This EA has built-in check for spreads. You can also set the maximum spread you wish to trade with. For example – some times during the off hours or holiday season, the spreads are excessive and the probability of loss is very high. In such scenarios, the EA automatically stays away from opening trades protecting your equity.
  • The EA also has a facility to increase the trading lot sizes as the account balance changes. There is a variable given for user input. If you set the value as 1, the EA will automatically open bigger lots as the account grows, giving you a possibility to grow the account exponentially. However, this is a double-edged sword, you can easily get bigger losses if the loss-making trades take place. Note that no EA is perfect and no one can truly predict market movements – so it is very much possible that the EA will open a trade that may go south on you. Be careful with this flag. I always prefer to keep constant lot sizes and hence turn this flag off.
  • This EA allows multiple orders to be opened per currency pair but it has never been tested on more than 1 order per currency pair. It is advisable to keep it at 1.

Testing results:

Live testing is being done on a test account created with FXGlory – Account number 76400.

Here are some back-tests performed so far:

Back-test # 1: Trading platoform – TradersWay.com, Duration 1-Jun-2015 to 25-Dec-2015. Test performed on 26-Dec-2015. Modeling quality – 90% – Spread used – 5 Pips.

Currency pair Profit Total trades Winners Win ratio
Totals=>  $   26,382.68 491 415 84.52%
GBPJPY  $              9,228.00 60 54 90.00%
GBPCHF  $              8,191.52 48 44 91.67%
EURJPY  $              4,393.25 43 37 86.05%
EURGBP  $              3,914.04 50 45 90.00%
EURCHF  $               (310.25) 49 37 75.51%
CHFJPY  $              5,639.25 49 45 91.84%
USDJPY  $            (2,137.24) 51 39 76.47%
USDCHF  $              1,229.93 43 37 86.05%
GBPUSD  $            (5,346.60) 51 38 74.51%
EURUSD  $              1,580.78 47 39 82.98%

Back-test # 2: Trading platoform – FXGlory.com, Duration 15-Oct-2015 to 25-Dec-2015. Test performed on 26-Dec-2015. Modeling quality – 82% – Spread used – 5 Pips.

Currency pair Profit Total trades Winners Win ratio
Totals=>  $   10,485.39 350 304 86.86%
USDCHF  $                     1,480.35 16 15 93.75%
GBPUSD  $                   (2,069.00) 16 13 81.25%
EURUSD  $                     1,365.00 17 16 94.12%
USDJPY  $                       (416.34) 17 13 76.47%
USDCAD  $                   (1,054.55) 15 11 73.33%
AUDUSD  $                   (1,121.00) 15 11 73.33%
EURGBP  $                     2,202.78 16 16 100.00%
EURAUD  $                       (358.02) 13 10 76.92%
EURCHF  $                         914.57 16 16 100.00%
EURJPY  $                     1,540.72 15 12 80.00%
GBPCHF  $                     2,573.65 15 15 100.00%
CADJPY  $                           (5.87) 18 15 83.33%
GBPJPY  $                     1,418.75 18 18 100.00%
AUDNZD  $                         523.53 13 12 92.31%
AUDCAD  $                     1,071.06 13 12 92.31%
AUDCHF  $                         550.01 14 12 85.71%
AUDJPY  $                   (1,606.57) 15 11 73.33%
CHFJPY  $                     1,860.01 18 18 100.00%
EURNZD  $                   (1,019.84) 14 9 64.29%
EURCAD  $                     2,531.46 15 15 100.00%
CADCHF  $                     1,374.44 13 12 92.31%
NZDJPY  $                       (123.75) 16 13 81.25%
NZDUSD  $                   (1,146.00) 12 9 75.00%

 

Download the EA (Free version works on the demo accounts only – contact me for the production version)

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Risk warning: Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. More over, the leveraged nature of forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin requirement, your position may be liquidated and you will be responsible for any resulting losses.