This EA automatically trades double top and double bottom patterns, also called M and W patterns.
M and W patterns are a sign that a trend reversal has begun.
The EA trades the EURUSD, GBPUSD and EURGBP pairs.
Double Top or M Pattern
In the image below you can see that two peaks or “tops” were formed after a strong move up.
Notice how the second top was not able to break the high of the first top.
This is a strong sign that a reversal is going to occur because it is telling us that the buying pressure is just about finished.
The EA places a sell order just below the neckline because it's anticipating a reversal of the uptrend.
Double Bottom or W Pattern
In the image below you can see that two valleys or “bottoms” were formed after a strong move down.
Notice how the second bottom wasn’t able to break the first bottom.
This is a sign that the selling pressure is about finished, and that a reversal is about to occur.
The EA places a buy order just above the neckline because it's anticipating a reversal of the downtrend.
The algorithm of the EA searches for the best M and W Patterns.
It doesn't take time in account very much so you may not clearly recognize the pattern, but the EA does ;).
This produces patterns with probability of success of around 70%!
That, together with a Risk Reward Setting of around 1:1 gives us very nice results!
Put the EA on a EURUSD and GBPUSD and EURGBP chart.
The Time Frame is of no importance because that
is taken care off internally.
I only recommend H1 or higher so that one can see the M & W patterns better.
There are no complicated settings to worry about, default settings should be just fine.
You may want to change the Money Management setting to suit your risk appetite.
It's advisable to do a short test in the strategy tester to see if the Lot Size is alright for you.
Remember that it can trade simultaneously on all three pairs.
(trades once a week on average)
An account balance of around $300 should already be sufficient.
- Money Management = From the drop-down list, choose between "Progressive Lot Size" or "Fixed Lot Size".
- Money Management Value = The value for the above chosen method.
- When "Progressive Lot Size" then
the Value is percent of free margin to calculate the lot size. Default 2%.
- When "Fixed Lot Size" then the Value is the lot
- Magic Number = When 0, the EA automatically sets the Magic Number or Enter a unique number for each EA yourself.
- Order Comment = Enter your order comment if desired.
All MT4 backtests were done on real tick data (Dukascopy) with 99.9% Modelling quality, with variable spread and
slippage, account leverage of 1:500.
All Backtests are from 1/1/2015 to 1/1/2020 (5 years).
MT5 gave the possibility to test on all three pairs at once to see the
effect of the progressive lot size.
NOT this version but a special test version!
See the result of the backtests in the
images below (or in trading platform, screenshots tab).
For the detailed MT5 backtest results done on all 3 pairs combined or if you
would like to do the multi pair backtest yourself then please PM me.
I kept the lead-off price of this EA very low, with as main reason to give the small retail trader the chance to run a profitable system
without having to spend a fortune.
Because I'm very enthusiastic about the promising back test results I decided to publish it already, despite that there are not a lot of trades
on the live account yet.
The price may go up in the future, so secure your copy today!