Krakatau

This Expert Advisor is inspired on YouTube video: Trade Forex with an 91% Win Rate – No Indicators Needed!, Posted by the StatOasis | Ali Casey.

Basically, you can run this expert advisor on any asset. However the coding of this EA has been finetuned and tweaked for the Nasdaq 100.

This is not a get quick rich scheme. It can take weeks before the conditions are met to open a trade. Patience is the keyword here.

Safety First!

We added risk management features, which are:

Risk: You can only add a risk level between 0% and 2% on the running equity, and this per trade. In case your trade goes south, and the risk level is reached, the trade will be closed.

Emergency stop: Your broker may impose you a maximum drawdown of e.g. $500 per trade. You may want to set this value then to $450 just to have a buffer in case your trade is not filled immediately.

Avoid Greed or Revenge Trading: Sometimes you may overreact out of frustration. Therefor you cannot exceed a lot size of 5. Just for your own protection.

What is covered by the Krakatau advisor?

This expert advisor handles a single pattern with a high win rate.

Here is how the pattern works:

This is a two-bar pattern used on the daily timeframe: for the long pattern, the first bar's characteristics are irrelevant, but the second bar must be a down bar, meaning its close is below the open and the close has to be below the previous day's low. Upon identifying this pattern, enter the trade the next day if the price surpasses the high of the second bar. If the closing price is above the entry price (indicating profitability), exit the trade. Alternatively, exit the trade if profitability is not achieved within ten bars.

For the short pattern, the first bar's characteristics are also irrelevant, whereas the second bar needs to be an up bar, with the close higher than the open and the close needs to be above the previous high. Enter the trade the next day if the price falls below the low of the second bar. Exit if the closing price is below the entry price within ten bars.

The input parameters.

Go to Inputs – tab of the expert advisor where you can adapt some parameters by double clicking on them.

Indicate Minimum Lot Size:

Ensure alignment with your broker's settings for the minimum lot size value. This expert advisor will attempt to recalculate the lot size based on your risk preferences. It will not calculate a larger lot size than what the broker permits.

Indicate Risk % ([0,2]):

Risk is measured against running equity, with acceptable values ranging from 0 to 2. For safety, values above 2 are not permitted. Risk is calculated per trade.

Indicate Maximum Drawdown, 0 means Not Applicable:

You can set a monetary value here, which will serve as an emergency stop. The maximum drawdown is per trade. If the value is set to 0, this parameter will be ignored.

Bollinger Band Range (>0):

The algorithm uses Bollinger Bands as an indicator. The default setting being 10.

Bollinger Band Squeeze Range (>0):

This serves as a filter. A trade can continue only when the distance between the upper and lower bands exceeds the set value.

Closing the trade

The trades will be closed if one of the conditions below is met:

•         The bar following the initial bar indicates a profit, albeit sometimes minor.
•         The trade remains open for 10 days without realizing any profit.
•         The maximum allowable risk in monetary terms has been reached, and the trade is evidently generating a loss.
•         The trade is incurring a loss, and the maximum drawdown threshold in monetary value has been hit, if applicable (refer to configuration).

Testing Results

You can see the settings and result on the attached images. The test data used for this EA are coming from the Nasdaq100 and where downloaded from https: www.tickstory.com. For the test result, look at the win rate. It seems confirming the results obtained and posted in the video mentioned above.