A Black Box
This EA finds optimal buy and sell points using an optimized standard deviation from an optimized exponential moving average. It always buys when relative prices are optimally low and always sells when relative prices are optimally high. The EA then trails an entry point using an optimized ATR trailing stop and exits a trade when it:
- is trailed out or
- reaches the opposing optimal cluster.
See Comments for the latest test results.
It is more the way optimal points are analyzed and confirmed before a trade is taken that makes this system efficient. There is a methodology that has been used by the author for 21 years ( I am a real trader!) that is incorporated in the EA. The basic premise of this method is that the market tends to fluctuate between optimal points most of the time. While catching a trend can be very profitable, there are many opportunities for profit in the meantime. By using longer timeframes this system is also able to catch trends.
You can use the default optimization quite successfully on EURUSD H1. I can give you my optimizations should you require them.
You can optimize any product on any timeframe before use (1 month to 1 year back). The process is simple as there are only 7 variables, only 4 to optimize. Use the tester select Timeframe and Product.
- Lots : ( only 1 entry is made)
- Stop loss : DO NOT OPTIMIZE ( you must put a start value i.e 150 and the ATR trail will adjust automatically)
- Take profit: DO NOT OPTIMIZE ( I prefer to leave this at 0 and let the ATR trail maximize my profit or minimize my loss)
- Bands Period : OPTIMIZE - usually between 15 and 25
- Deviation : OPTIMIZE usually between 2 and 3 ( in 0.1 increments)
- ATR Period: OPTIMIZE usually high between 50 and 120
- ATR Multiple: OPTIMIZE usually between 2 and 4 (in 0.1 increments)
- Close on MA Cross: default is False ( you have the option to take profits at the MA)
- Magic Number : any number you like
- Write screenshot: arrow when a trade is made
Once you have your optimal points you can set your EA and go about your life.
Stops are not tight in this system. I recommend the virtual server.
If the system is not in a trade, turn it off on FED days and on ECB days.
Use wise money management and avoid investing more than 2% of your account on any trade