SignalTech MT5

SignalTech MT5 is a fully rule based trading system for EURUSD, USDCHF, USDJPY, AUDUSD, NZDUSD, EURJPY, AUDJPY, NZDJPY, CADJPY. 

It can generate signals with Buy/Sell Arrows and Pop-Up/Sound Alerts. Each signal has clear Entry and Stop Loss levels, which should be automatically flagged on the chart, as well as potential Targets 1, 2, and 3.

The Entry and TP levels are fixed after the trade is taken.

The exit level is dynamic. If there are signs of a potential short-term trend reversal, the system will generate an exit signal regardless of profit or loss.
  
No over-optimization, never repaint.

1. Key Logic:

The key logic was published in the Journal of the UK Society of Technical Analysts (Issue 90. Page 36-48 ）and the Journal of Stock & Forex Trading (ISSN 2168-9458), respectively. The current Accutrade System was developed after further modifications and corrections.

-- Wang, Y. (2021). Tendency forex system: A backtestable indicator. Market Technician, 90, 36-48. [Google Scholar]

-- Wang, Y. (2024) Razor Forex System: Backtesting and the Combination with Tendency Forex System. J Stock Forex. 11:250 [Google Scholar]

2. Filter:

It can be used alone or use the MTF Trend Collection as a filter.

Please note that all communication should take place within MQL5. We do not provide and/or accept any other contact methods.

https://www.mql5.com/en/market/product/169096

    2.1 The signal should have the same direction as the filter from the higher timeframe. For example:

If we get a EURUSD sell signal on H2 Timeframe, the MTF Trend Detector on EURUSD H4 Timeframe must be “Down.” If we get a EURUSD sell signal on H3 Timeframe, the MTF Trend Detector on EURUSD H6 Timeframe must be “Down.” If we get a EURUSD sell signal on H4 Timeframe, the MTF Trend Detector on EURUSD H8 Timeframe must be “Down.” And vice versa for the Buy Trade.

    2.2 For conservative traders, you can directly use the Daily chart as the filter. For example:
If we get a EURUSD sell signal on H2 Timeframe, the MTF Trend Detector on EURUSD Daily must be “Down.” And vice versa for the Buy Trade.

    2.3 If you trade on the H1 timeframe, we strongly recommend using the H4 timeframe as the filter. For example:
If we get a EURUSD sell signal on H1 Timeframe, the MTF Trend Detector on EURUSD H4 timeframe must be “Down.” And vice versa for the Buy Trade.

3. FIFO Compatibility: Yes

4. Data Feed:

It needs very accurate data feed. We highly recommend MetaQuotes Demo accounts.

If you use Broker account, Tickmill Demo account is good. 

Therefore, Forex Strategist does not support symbols with any suffix. 

5. Recommended Timeframes:

H2, H3.

Theoretically, it can work on any timeframes. However, the data from the H2 and H3 timeframes is more balanced, producing 12 and 8 candles each trading day respectively. This not only effectively filters out false signals caused by short-term price fluctuations in hourly or other lower timeframes but also allows for the immediate detection and tracking of potential trends.

For sure, in case of a confirmed major trend, or when doing some intraday scalping trades, or try to trade market extremes, the H1 timeframe is also doable. (All this is based on a deep understanding of the market.)

However, according to our long-term statistical analysis, the number of false signals will increase on H1 and other lower timeframes. Please carefully consider the pros and cons. In most cases, “Trade More” is not equal to “Win More.” Overtrading can do great harm to accounts. This is a widespread consensus in the industry.

Some new traders often have great enthusiasm to trade on M5 or M1 timeframes looking for more trading opportunities, but they first need to consider whether their abilities and knowledge are sufficient to break or challenge the existing industry consensus. Secondly, they also need to consider their trading target: whether to satisfy their passion and ultimately incur losses, or to prepare to learn various methods to achieve profits.

6. Recommended Trading Portfolio:

    H2 and H3 Timeframes:

    EURUSD, USDCHF, AUDUSD, USDJPY, AUDJPY

    H3 Timeframe:

    NZDUSD, NZDJPY, CADJPY

7. Recommended Position:

0.1 Lot per trade for every $10K balance is okay. You can further adjust it according to your own risk appetite.

8. Minimum Investment:

$500 or $1000 with 0.01 Lot per trade is okay.

9. Winning Rate:

According to our statistical analysis, the long-term hit ratio of Target 1, Target 2, and Target 3 is 82%, 75%, and 57% respectively.

Many traders place great importance on the winning rate. They prefer trading systems with a winning rate of 90% or higher. To satisfy their needs, such trading systems often set very large stop loss levels, but the take profit (TP) is very small.

However, a single losing trade from this kind of system can result in losses that equal or even exceed those from 15-20 winning trades. Therefore, the overall performance can still be negative.

That will never be our target. Also, we have never seen any bank or professional trader use this kind of trading system, at least until now. The aim of the AccuTrade System is to maximize profits with minimal losses, rather than simply chasing a high winning rate.

However, from a Risk-Reward perspective, Target 3 should be the final target of each trade.

You can find more details in this article:

-- Wang, Y. (2024) Razor Forex System: Backtesting and the Combination with Tendency Forex System. J Stock Forex. 11:250 [Google Scholar]

10. Some Tips:

    10.1 Be Patient

From the results published in the comments, we can see that there is always an interval of 5-7 days, or even longer, between 2 big wins. This does not mean that SignalTech only works every 5-7 days, but rather indicates that the market spends more time consolidating, and we need to observe patiently.

    10.2 Position from multiple timeframes

We advocate executing each signal of SignalTech, including both H2 and H3 timeframes. Statistical analysis shows that this will not increase drawdown but rather help hedge risks.

    10.3 Trading Discipline

It is essential to follow the results of SignalTech. When it's time to exit, no matter whether you win or lose, you must exit. Tomorrow will always be better.

Assuming the methodology is applied correctly, any analyst's analysis results are based on the premise that existing trends can be maintained and developed further. However, if there is a significant change in the fundamental driving factors of the market, the trend is very likely to reverse.

For example, regarding USDJPY, if analyzed purely from a technical perspective, it is undoubtedly highly bullish above 160, but it is also clearly in the intervention area of the BOJ, so we must be cautious in executing buy trades and always be ready for a sell trade at that area.

    10.4 Never try to directly pick the top and bottom

    10.5 Never directly trade against the major trend

SignalTech is always in a "look to buy or sell" mode, which is much safer than other systems that directly pick tops and bottoms.

    10.6 Fundamental Analysis:

Many traders overlook the importance of fundamental analysis, believing that relying solely on technical analysis is sufficient for successful forex trading.

In reality, many aspects of life are similar: we don’t recognize the importance of something doesn’t mean it’s not important.

Fundamental analysis requires a very broad knowledge base, including the analysis of various economic indicators, currency policies of different countries, political factors, international trade, market psychology, and more. This often requires an experienced professional team to accomplish, far beyond what an individual retail trader can manage independently through learning.

When technical analysis and fundamental analysis arrive at the same conclusion, it often represents a highly credible trading opportunity; conversely, when they arrive at completely different conclusions, careful consideration is needed: either the technical aspect shows a false signal, or there is a deviation in the fundamental analysis results. At this point, effective risk control in trading is essential.

We'll launch 2 Channels soon:

    1 is free to join for some basic fundamental analysis

    1 is for SignalTech subscribers only for detailed Daily FX Reports.

    10.7 Trading Time: 

11. Input Parameters:

Line setting: 
Line Style: Default is Solid
Buy Color: Default is White
Sell Color: Default is White
Stop Loss Color: Default is White
Target Color: Default is Gold

Panel Setting: 
Corner: Default is Let upper chart corner
X Panel: Default is 10
Y Panel: Default is 20
BackGround1: Default is DarkBlue
BackGround 2: Default is 47,47,47
Text Color: Default is White

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