Long Term Investor

Long Term Investor

This EA uses a mean reversion strategy designed primarily for NASDAQ on the daily timeframe, though it can work on other indices as well. It looks for specific market conditions to enter long positions and holds them for 1-2 days maximum.

From 2017 to 2025, this EA significantly outperformed the typical buy and hold strategy on NASDAQ:

• EA Performance: ~1300% return with maximum drawdown of 20%
• Buy and Hold: Lower returns with similar or higher drawdowns during market crashes

The key advantage is the much better return-to-drawdown ratio - you get higher returns while experiencing smaller temporary losses compared to just buying and holding NASDAQ.

Please read this carefully before using:

• Past performance does not guarantee future results - these backtest results are historical and markets change
• Trading involves risk - you can lose money, potentially more than you invest
• This is not financial advice - I'm sharing a strategy, not telling you what to do with your money
• Test everything yourself - don't trust anyone's backtest including mine, do your own testing first

Best Settings and Usage

• Timeframe: Daily (D1) - this is crucial, don't use on other timeframes
• Symbol: Works best on NASDAQ (NAS100), can work on other indices but NASDAQ shows best results in my testing
• February Filter: Enabled by default because February historically performs poorly, but you can disable it if you want

This EA provides three flexible lot sizing methods to match your trading style and risk management preferences:

1. Fixed Lot Size

• Use Case: Simple, consistent position sizing
• How it works: Enter a fixed lot size (e.g., 0.01, 0.1, 1.0) that will be used for every trade
• Best for: Traders who want predictable position sizes regardless of account balance

2. Percentage Match (Custom Account Size)

• Use Case: Proportional risk based on a target account size
• How it works: Set your desired account size (e.g., $10,000), and the EA calculates the lot size so that a 1% move in NASDAQ equals a 1% move in your specified account
• Example:
  • Custom Account Size: $10,000
  • If NASDAQ moves +2%, your account gains ~$200 (+2%)
  • If NASDAQ moves -3%, your account loses ~$300 (-3%)
• Best for: Traders who want to simulate trading with a specific account size or maintain consistent percentage-based exposure

3. Percentage Match (Current Balance)

• Use Case: Dynamic risk that adjusts with your account growth
• How it works: Uses your current account balance at the time of each trade entry to calculate lot size, ensuring NASDAQ percentage moves match your account percentage moves
• Example:
  • Current Balance: $15,000
  • If NASDAQ moves +1.5%, your account gains ~$225 (+1.5%)
  • As your account grows, position sizes automatically scale up proportionally
• Best for: Traders who want their position size to grow/shrink with their account, maintaining constant percentage exposure

Important Notes

Backtesting Accuracy

⚠️ Known MT5 Limitation: Percentage matching calculations work perfectly in live trading but may show inflated risk in backtests on brokers using 2-decimal NASDAQ quotes (XXXXX.XX). This is a MetaTrader 5 backtesting engine limitation, not an EA issue.

• ✅ Live Trading: Accurate on all brokers
• ✅ Backtesting: Accurate on 1-decimal format (e.g., Darwinex: XXXXX.X)
• ⚠️ Backtesting: May show incorrect risk on 2-decimal format (XXXXX.XX)

Recommendation: For accurate backtest results with percentage matching, use historical data from brokers with 1-decimal NASDAQ quotes.

Risk Management

• The EA trades without stop-loss by design, using time-based exits instead
• Percentage matching ensures your account moves proportionally with NASDAQ
• Maximum historical NASDAQ drawdown has never exceeded 50% in a single event
• Always test thoroughly and understand your risk exposure before live trading

What You Need to Know

1. This isn't a get-rich-quick system - it's a steady strategy that compounds over time
2. You must test lot sizing - what works for a $10k account won't work for a $1k account

I've been using variations of this strategy for a while and wanted to share it with the community. The IBS concept isn't new - it's been around in various forms for years. This is just my implementation of it for MT5.

I'm not promising you'll make money - I'm sharing a tool that has worked historically. What you do with it is up to you.

Final Thoughts

If you decide to use this EA:

• Start with small lot sizes
• Test it thoroughly on demo first
• Never risk more than you can afford to lose
• Keep realistic expectations
• Remember that all trading involves risk

Good luck, and trade responsibly.