EA Description
This is something I always keep in mind when developing, not just with this EA, but with the understanding that even if you fiddle around with a lot of strange indicators to improve the superficial BT performance, it will not work at all in real life. I try to develop EAs that are based only on simple logic whose basis I can understand with my own head.
This EA constantly monitors for signs of a trend and aims for a large price range from the initial movement when a trend occurs.
The most popular types of EAs sold in the market are those that determine the trend on long-term bars, enter when the short-term bars go against the trend, and settle with a relatively wide SL and narrow TP width. The following types are relatively easy to create and often show good backtests, but they have a poor risk-reward ratio because they enter after missing the most lucrative market bullish or bearish candles, and are based on the premise of a high win rate. When market volatility becomes volatile, you may see situations where the profits you have steadily built up are blown away in just a few trades.
This EA enters the moment it detects a trend when it occurs, and if it determines that it has misread it, it gracefully withdraws and waits for the next big wave.Although the win rate is less than 40%, if you keep running it, eventually your profits will swallow up your losses, and the logic has been working to create new record highs for over 23 years since 1999.
In addition, because the expected profit is close to 4 pips, even if the advantage decreases due to a slight generalization of the logic, there is little chance of it falling into negative territory, and the specifications allow you to make a profit without using a broker with an extremely low spread.
Past performance analysis
In backtests going back to 1999, except for one year in 2019, which had abnormally low volatility, the index has been winning every year, and there has been no significant drop in performance in the most recent AI market, resulting in a well-balanced profit/loss curve.
Also, since there are an average of 120 trades per year, you will not end up in a situation where you buy but do not enter at all.
*In order to minimize discrepancies with the backtest, entries are not permitted between 0:00 and 2:00 when spreads may be wider.
