Hey fellow traders! Today, I’m excited to introduce you to an incredible Expert Advisor (EA) that’s making waves in the trading community: the Price Action EA. Forget about complicated indicators; this EA is all about following price action!
Tested from August 18, 1995, to January 29, 2014, this EA has turned a modest account of $10,000 into a staggering $11,958,183.37. Yes, you read that right!
Key Parameters:
If you’re starting with a $10,000 balance, you can stick with the default settings. Just remember to adjust the lot size according to your balance: the recommended lot size is 0.01 for every $100.
I encourage you to backtest this EA over a longer period and share your thoughts! I’ve also updated the code to initiate TradeType as 1, which is a great addition.
How Does It Work?
I’ve noticed that many traders were a bit puzzled about how this EA operates. Honestly, I wasn’t initially prepared to submit it for approval, but I’m thrilled to see it’s been given the green light!
The logic is pretty straightforward. During volatile market conditions—usually about five minutes after major news releases—the market tends to oscillate before making a strong move in one direction. If you set TradeType to 1, the EA will open a long trade. If the market dips by 100 points (10 pips), it will close that long position and open a short one. The EA continues to ride those waves until the market settles in one direction.
However, be cautious: if the market swings more than five times, that can spell trouble. Typically, 5 to 10 minutes post-news release is when the market tends to trend clearly. It’s crucial not to start the EA just before or right after the news release, as that’s when volatility peaks. I often wait for the hour candle to close, depending on how significant the news impact is. Also, avoid using this EA during slow market conditions with low trading volumes.
From 1995 to 2010, this EA demonstrated that the FX market was predominantly trending. Since then, it has seen increased volatility.
Latest Update: I’ve cleaned up the code and added a Trailing Stop feature to enhance performance.
Happy trading, and I can’t wait to hear how this EA works for you!
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