Financial Independence Dragon
Financial Independence Dragon (F.I.D) is a MetaTrader 4 based, fully automatic EA which trades by “trend trading” strategy. FID will pre-judge the trend direction in advance and open buy or sell orders when detecting momentum. The default EURUSD parameter was developed by 99.9% tick level database. We also made cross-validation (In sample test + Out of sample test) during the development stage in order to minimize over-fitting effects.
The Expert Advisor supports trading with a flexible lot size (Standard 1 lot per $10,000 or minimum 0.01 lot per $100 deposit), and also includes the ACM (Automatic Capital Management) function for automatic lot calculation based on the customized risk ratio.
How it works
- Pre-judge the direction, open the Buy / Sell order when momentum is detected.
- Using trailing stop loss to maximize the profit when market moves fast.
- Multiple stop loss methods are available.
- Reference to Figure 1.
- Short position holding time: Long-term average is 6h 8m.
- Controllable risk level, easy to control by lot size and risk ratio settings.
- Flexible capital requirement, FID can work with any deposit, no matter $100 or even more than $50,000.
- 100% automatic trading, no need to worry about temporarily leverage ratio change by brokers. Or any bombshell news in the market.
- Highly customizable, with flexible combinations of indicators, filters and stoppers.
- Multiple Forex pairs is available: EURUSD (default parameters), GBPUSD, EURJPY, GBPJPY, USDCHF.
- Reference to Figure 2.
ACM (Automatic Capital Management)
- The ACM mode allows investor to have a variable lot size according to preset risk ratio (From 0.1~2) and equity. The parameter of this risk ratio means the standard lot size by $10,000 deposit. Default is 1.0 (1 lot by $10,000 initial deposit or 0.3 lot by $3,000, etc).
- With the ACM mode, investor can maximize the power of compound interest by every single order with the same level of risk.
- Reference to Figure 3.
List of parameters
- EA starting Hour (GMT+0): EA start time.
- EA closing Hour (GMT+0) : EA stop time.
- Interval of next order (Seconds): Control the interval of two adjacent orders.
- Max spread point: Stop opening new orders when spread is bigger than preset number.
- Max slide point: To define the maximum slippage in points investor can allow.
- Buy lot: Fix buy lot size when ACM is disabled.
- Sell lot: Fix sell lot size when ACM is disabled.
- Enable Automatic Capital Management (ACM).
- ACM risk ratio (0.1-2).
- SAR filter: Direction judgment.
- MA1 filter: Direction judgment.
- MA2 filter: Direction judgment.
- MACD filter: Direction judgment.
- KD filter: To avoid buy in the top or sell in the bottom.
- Envelopers filter: To avoid buy in the top or sell in the bottom.
- Trailing stop loss: Variable profit by every order.
- Time up stop loss: Reduce the loss when the momentum is gone.
- Timeframe: M5.
- Deposit: $100 and higher.
- Account type: ECN account with average 0~0.5 pips, commission no more than $7.0/lot.
- We strongly recommend using an ECN account with low spread (0~0.5 pips) and fast execution. STP account (1.5~2.5 pips) will impact the profit significantly.
- ACM (Automatic Capital Management) risk ratio should be no more than 2.0 (Default: 1.0).
- Timeframe: Fixed as M5, otherwise all of the default parameters have to be modified.
- Default parameters are designed for EURUSD, please DO NOT modify them for EURUSD trading or use them on other pairs unless you are capable of MetaTrader 4 optimization with high quality tick data base.