Welcome back, fellow traders! Today, we're diving into the MA.S.R. trading strategy, specifically designed for MetaTrader 4. This method leverages the Moving Average (MA) indicator to help you make informed trading decisions.
If you’re curious about the system testing details, check out our magazine issue from April 28, 2008. Feel free to join the conversation and share your thoughts on our forum here: Forum Discussion.
Description:
Let’s break down the trading strategy algorithm:
- Start by opening a 4-hour chart for EUR/USD, using a lot size of 0.1.
- Next, draw a 5-period Moving Average.
Buy Signal: A trough forms on the MA indicator.
Sell Signal: A peak forms on the MA indicator.
To manage your trades effectively, we’ll use a Stop Loss. Here’s how to set it up:
- Identify the MA inflection point (trough for Buy, peak for Sell).
- For a Buy, determine the minimum price over the last 10 bars in history.
- For a Sell, identify the maximum price over the last 10 bars in history.
- Place your Stop Loss accordingly and adjust it with each new trough or peak formation to optimize your risk management.
Results:
After testing the aforementioned rules from January 11, 2007 to January 11, 2008, here are the results based on open prices:
Following optimization during the same period, we achieved the following EA performance:
The profit factor stood at an impressive 3.70, with an expected payoff of 76.74!
For a deeper dive, you can also access the forward test results for EUR/USD and EA tests for GBP/JPY in our magazine from April 28, 2008. Download the latest issue here: Download Latest Issue.
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