A multicurrency Expert Advisor trading a balanced portfolio consisting of nine currency pairs.
The strategy is based on a trend following principle. It joins the medium-term trend during completion of the rollback. A trading position for each instrument is formed gradually - it may consist of several trades in the same direction. All deals are protected by stop loss orders. Profit is locked in by take profit orders. The EA trades around the clock, five days a week. The volume of a deal is small with respect to the deposit.
Building and balancing of the trading portfolio is an important part of the trading system. One of the authors of the strategy is a trader in a large commercial bank. When performing this hard work, we have used his over 10 years experience of trading in the FOREX spot market.
Nine currency pairs in the portfolio are divided into several groups that are united by a base currency. Thus, within each group, there is the possibility of some sort of arbitration - you can buy (and sell) one and the same product (the base currency) in several markets at the same time. There is a positive correlation between these markets, but there is no complete synchronicity. In most cases it allows to build a synthetic position of the base currency, which is resistant to unexpected fluctuations in individual markets.
Several such synthetic positions constitute a trading portfolio, which is subject to the final balancing. All the above ideas are implemented in the Banking FX EA. The results are consistent with expectations.
The EA Results
During tests on historical data it showed profitability of around 90% per year. The EA was tested on one instrument (EURUSD) from 01.09.2012 to 01.09.2013. If can download a demo version of the EA and obtain similar data.
However, it should be noted that the full testing of multicurrency Expert Advisor is not possible in th MetaTrader 4 Strategy Tester. The attached screenshot shows the work of the EA on only one pair of nine in the portfolio. You can see that the equity curve has several extremes, where the EA had to open large positions against the existing trend having no support from other markets. The balanced trading portfolio, which was discussed above, is used to avoid such situations.
The most effective tool for testing the profitability of any EA, and a multicurrency one in particular, is independent real-time monitoring of an account. Banking FX works in this mode since February, 2013. You can see its trading results at the link below:
Instructions for Use
- After purchasing the EA, make sure it is displayed in the Navigator window of the in the MetaTrader 4, and the following currency pairs are shown in the Market Watch window: AUDNZD, AUDUSD, EURGBP, EURJPY, EURUSD, GBPUSD, NZDUSD, USDCAD, USDJPY.
- Download the zip file containing the Banking FX here: http://bankingfx.ru/download.
- Unpack the archive to the profiles folder of the MetaTrader 4 terminal.
- Activate the Banking FX profile using the File -> Profiles menu.
- Make sure that the Experts button is turned on in the terminal and next to the EA name a smiley face appears in the upper right corner of each chart.
After you activate the Banking FX profile, the Expert Advisor is ready to run and requires no additional setup. However, you can slightly change the parameters of separate Expert Advisors if necessary. Here are the parameters:
- MagicNumber - the ID used by the Expert Advisor to identify orders. It must be unique for each chart.
- BaseLot - the basic volume of a deal. This is the volume of the first deal of a total position. See below the recommendations on this parameter.
- Delta - the minimum distance (in standard points) between neighboring orders for one symbol in the same direction.
- Factor - volume increase factor for the second deal of the total position. It is used for the second deal only. The volumes of all other deals are defined by the internal algorithm of an Expert Advisor. The parameter has an indirect effect to the accepted risks, its value should be within the range of 1.5 - 2.
- TakeProfit - the take profit level of the total position (in standard points).
- StopLoss - the stop loss level (in standard points).
- MaxBUY, MaxSELL - the maximum number of open buy/sell orders at the same time (on one symbol).
- Slippage - allowed slippage when opening a deal (in standard points).
Recommended minimum deposit - $500. Your broker must allow trading micro-lots (0.01) and open opposite positions. Recommendations on how to select a broker are available on the project site.
The МetaТrader 4 terminal, in which the EA runs, must be on around the clock (Monday to Friday). If you do not have such an opportunity, the EA should be installed on a VPS.
For more details and technical support visit the project site at http://bankingfx.ru