Dual SMA Touch Strategy

📊 Dual SMA Touch Strategy

Dual SMA Touch Strategy is a fully automated, trend-following Expert Advisor designed to capitalize on momentum pullbacks. Rather than relying on rigid, universal parameters, this EA features a highly adaptable engine that uses distinct, day-of-the-week optimizations to account for shifting daily market volatility.

It is engineered for precise execution on low-latency ECN accounts and is particularly well-suited for highly liquid instruments like XAUUSD (Gold).

⚠️ Important Note on Point Values (Broker Pricing)

The default Stop Loss (SL), Take Profit (TP), and Touch Tolerance inputs in this EA are calibrated in points specifically for 2-digit pricing brokers (e.g., XAUUSD quoted as 4200.50).

• If you are trading on a standard 2-digit broker, you can use the default settings out of the box.

• If you are using a 3-digit pricing broker (e.g., XAUUSD quoted as 4200.500), you must multiply all default point inputs (SL, TP1, TP2, MaxDiff, TouchTolerance, Maxspread and MaxSlippage) by 10 to maintain the correct distances.

⚙️ Core Strategy

The algorithm operates on a dual-timeframe confirmation model to ensure trades are only executed in the direction of the dominant trend:

• Trend Filter (H1): The EA analyzes the 200 SMA on the 1-Hour chart to establish the macro trend direction.

• Entry Trigger (M15): Once the trend is confirmed, the EA waits for price to pull back and "touch" the 200 SMA on the 15-Minute chart within a dynamically calculated tolerance zone.

• Alignment Check: The system verifies the distance between the H1 and M15 SMAs to ensure market structure is aligned before firing an order.

🛡️ Key Features

• Day-Specific Optimization: Market behavior changes throughout the week. The EA allows you to set independent Stop Loss, Take Profit 1, Take Profit 2, and Touch Tolerance values for Monday through Friday.

• Dynamic Lot Sizing: Automatically scales position sizes based on your account balance, allowing for compounded account growth without manual intervention.

• Advanced Trade Management: Features an intelligent Break-Even system. Once the first Take Profit (TP1) threshold is reached, the Stop Loss is automatically moved to the entry price to protect the position while leaving room for the runner to hit TP2.

• Capital Protection: Built-in Max Spread and Max Slippage filters block entries during news events, extreme volatility, or poor broker liquidity.

💻 Recommended Setup

• Symbol: XAUUSD (Gold).

• Timeframe: Attach to the M15 chart (the EA reads H1 data automatically in the background).

• Broker: A low-spread, ECN broker environment is highly recommended.

• Hosting: Use a Virtual Private Server (VPS) with low latency to your broker's trading server for optimal entry execution.

⚖️ Risk Management Profiles

You can easily tailor the dynamic lot sizing engine to fit your personal risk tolerance. We recommend the following baseline configurations:

• Medium Risk Setup:

  • Initial Deposit: $200 or $300

  • Initial lot size: 0.01

  • Balance increase step for lot increase: $150 or $200

  • Lot increase step size: 0.01

• Low Risk Setup (Fixed Lot):

  • Initial Deposit: $300

  • Initial lot size: 0.01

  • Lot increase step size: 0.00 (Setting this parameter to 0 completely disables the dynamic auto-compounding feature. The EA will safely default to trading your specified Initial Lot Size for every single trade, regardless of how large your account balance grows).