Spike Trader Forex Expert Advisor is based on the idea of spike bars preceding movement in the opposite direction to the spike. This EA was inspired by the trading strategy described in May 2012 issue of Currency Trader magazine.
The spike is defined as a bar that is higher than previous BarsNumber bars, higher than previous bar by PercentageDifference and that closed in the lower ThirdOrHalf part of its length. For bullish signal, everything is inverted. The position is kept open until Hold bars pass or an opposite signal is received. If a new signal in the same direction is received, the position's timer is reset and no new position is opened.
The back-test of the Spike Trader MetaTrader Expert Advisor on the period of more than 11 years showed 73.93% profit with 5.22% maximum drawdown. The used position's volume was set to 0.1 standard lots. The EA made 172 trades, of which 59.88% were profitable. The default settings were used in this back-test on USDCAD D1 chart.
This EA is ECN-safe. You can freely use this expert advisor with ECN (market execution) brokers as it either does not apply any stop-loss and take-profit levels in its trading orders or sends only pending orders.
What are the stop-loss and take-profit levels used by this EA?
It does not use any stop-loss or take-profit levels but the average loss was $106.77 and the average profit — $143.31.
How often does it trade?
On USDCAD daily chart (the back-test settings), this EA will trade once every month on average.
Any settings other than default can be used?
Yes. If you are going to apply the EA to some other currency pair or timeframe, you should re-optimize it for different input settings, especially, the PercentageDifference parameter.