Quantum Gold Star

UTBot Divergence Filter EA is a professional-grade automated trading system that fuses two proven methodologies: UT Bot trailing stop signals for precise entry timing, and multi-indicator divergence analysis (adapted from LonesomeTheBlue's acclaimed Pine Script framework) to filter out low-probability trades before they happen.

The result: fewer trades, higher quality, smoother equity curve.

🔑 KEY PERFORMANCE (XAUUSD M15, Jan 2024 – Dec 2025, 100% Tick Quality)

With optimized lot sizing and compounding, the strategy achieved 2.5× account growth over the 2-year test period — while keeping drawdown firmly under control.

⚙️ HOW IT WORKS

Step 1 — UT Bot Signal Generation The EA calculates an adaptive trailing stop based on ATR (Average True Range). When price crosses the trailing stop upward, a buy signal fires; when it crosses downward, a sell signal fires. Sensitivity is adjustable to match your preferred timeframe and volatility regime.

Step 2 — Divergence Confirmation Filter Before any trade is placed, the EA scans up to 10 technical indicators simultaneously for bullish or bearish divergence:

• MACD Line & Histogram
• RSI (Relative Strength Index)
• Stochastic Oscillator
• CCI (Commodity Channel Index)
• Momentum
• OBV (On-Balance Volume)
• Volume-Weighted MACD
• Chaikin Money Flow (CMF)
• Money Flow Index (MFI)

A trade only executes when the UT Bot signal and the required number of divergence confirmations align. This dual-layer filter eliminates a significant portion of false signals, especially during choppy or range-bound markets.

Step 3 — Intelligent Risk Management

• Fixed price-move TP/SL: Set take-profit and stop-loss in dollar price movement (e.g., $15 TP / $14 SL on XAUUSD) — intuitive and broker-friendly
• Time-based risk exit: Automatically closes positions still in loss after a configurable number of hours (default: 24h) — prevents "zombie" trades from consuming margin indefinitely
• Martingale recovery module (optional): After N consecutive losses, the EA enters a recovery cycle with progressive lot sizing until cumulative profit recovers the drawdown, then resets to base lot. Fully configurable multiplier, max level, and persistence across restarts

📊 WHY THIS EA STANDS OUT

1. Institutional-grade signal quality — divergence filtering across 10 indicators is the kind of multi-factor confirmation professional desks use, not retail "one indicator" EAs
2. Sharpe Ratio 4.98 — this is in the top percentile of published EA backtests; it means the return-per-unit-of-risk is exceptionally favorable
3. 0.97 Linear Regression Correlation — the equity curve is near-perfectly linear, meaning consistent performance month after month, not a few lucky spikes
4. Balanced long/short — 120 short trades (43.33% win) + 125 long trades (51.20% win), no directional bias
5. Active across all sessions — trades during Asia, Europe, and US hours, adapting to global gold market dynamics
6. Fully configurable — every parameter is exposed: indicator toggles, divergence sensitivity, pivot period, risk settings, martingale on/off — tailor it to your account size and risk appetite

🛡️ BUILT-IN SAFETY FEATURES

• Spread filter: Skips entry when spread exceeds your defined threshold — avoids slippage during news events
• One position per symbol: Prevents overexposure (configurable)
• Close opposite: Automatically closes the opposing position on signal reversal — no hedging confusion
• Margin pre-check: Before every trade, the EA verifies sufficient free margin; if the desired lot exceeds available margin, it reduces lot size or skips — never blows the account on a margin call
• Martingale state persistence: Recovery state survives EA restart and terminal crash — no orphaned recovery cycles
• New bar only trading: Eliminates intra-bar noise and reduces computational load

📋 RECOMMENDED SETTINGS