Money Cross Expert Advisor - intraday trading with low drawdown
Money Cross Advisor is a trend system working in full automatic mode, based on moving averages, with a filter MACD. The trading algorithm is implemented as intraday with a working timeframe, starting from M15, ending with H1. This is a paid development with a free demo variant. The cost is very small, about 12$. Although the strategy is so clear that it would not be very difficult for specialists to create such a version. So, let's see.
Input parameters
The Expert Advisor works with the currency pairs EUR/USD, USD/CHF, GBP/USD (with caution), USD/CAD, AUD/USD, USD/JPY. Before using it on other symbols, a thorough test is required.
Price gaps on the asset chart (gaps) lead to an increase in the number of false signals. The period of macroeconomic news, which causes a surge in prices (class - "very important" in the economic calendar), is equal to gaps in terms of impact on the Expert Advisor. Therefore we work with caution on Monday and before important events.
Money Cross trading strategy
The Money Cross Expert Advisor system is based on two simple moving averages (MA) with period parameters 8 and 35, plotted on the closing prices, which determine the direction of the trend.
The signal arriving at the intersection of a "fast" moving average with a period of 8 and a slow one is filtered by the MACD indicator with the classical parameters 9, 12, 26.
The problem of lagging of the moving averages signal is solved by selecting the optimal value of the period. In order to filter out the error of such "fitting" the MACD filter is always used with the classical parameters, confirming the input by the moving factors of the transition of the bars of the histogram through the zero line.
Signals to buy, sell and close a deal
Advisor Money Cross sellт at the intersection of a "fast" moving average with a period of 8, a slow one (period 35) from top to bottom, if at the same time the MACD histogram has moved from positive to negative area.
Signals are counted by the close of the candle - in determining the validity of the conditions, the transaction takes place at the opening price of the next timeframe.
Buying deal opens when the "fast" moving average is above the "slow" one and the MACD histogram bar moves into the positive area:
As can be seen in the figure above, the MACD histogram was "ahead" of the sliding bars - the bars took a positive value before the cross, so as soon as the eight-period MA was above the "slow", by closing the candle Money Cross, checking the conditions, opened a deal on the first tick of the price of the new timeframe.
The deal is closed at Take Profit (set by the user in the settings) or when a reverse signal appears. In this case the system makes a reverse double deal, simultaneously fixing the loss and opening a new position. The old position is closed completely.
Money Cross strategy money management - money management
The Expert Advisor has implemented the tactic of limiting the trades by time: the "working segment" begins three hours before the London LSE session, "wins out" the entire European session and ends at the moment of opening of the North American exchanges. The transition through the American session is carried out in the presence of a previously open deal.
TakeProfit is set at 300 points for an hour chart, when trading on the fifteen-minute candles traders limit this size to 100 points.
Money Cross Expert Advisor Settings
The indicator settings window includes the ability to change:
- parameters of all indicators included in the system (MA and MACD);
- The Money Cross Expert Advisor has a time interval;
- the size of the takeprofit;
- stop-loss conditions (loss limitation) or reverse entry techniques.
If the column SL is zero, the Money Cross is reversed by the opposite signal, any other number - the size in pips, away from the opening price, not moving stop.
The lot size is user-configurable from fractional to integer values (corresponds to the Metatrader's order digit capacity).
The Risk parameter is designed to "run up" capital by increasing (or decreasing) by the number of percent (by default - 10) the amount of capital in the order on the condition: if the previous close was in the plus - the trade is increased, in the minus - it is decreased.
The Shift parameter makes it possible to shift the moving averages by increasing the signal lag. When MACD parameters are constant, this effect is used for quick adjustment of moving averages, adjusting them to "lagging" signals of the first indicator.
Traders who use Money Cross simultaneously on several open instruments should use the magic signal identifier.
Installing Money Cross Expert Advisor on the Metatrader platform
In the open Metatrader terminal, select the "Open Data Catalog" option in the top main menu "File":
In the window that appears, open the MQL4 folder and place the Expert Advisor in the Experts folder:
Reload the Metatrader terminal and the Expert Advisor will appear in the Navigator window. By grabbing the mouse and dragging the robot to the chart, the user can proceed with the settings and start Money Cross.
Testing Money Cross Expert Advisor
Let's see how Money Cross works. For the test, we will use the EUR/USD pair, H1 time frame, 1 point spread, all ticks method. We will use the default parameters.
Not bad results for 100$ considering the percentage of profitability and absolute drawdown. 50% for a year - not much, but enough for one pair.
The next Money Cross test: GBP/USD, time frame - H1, method - all ticks.
Not as nice as in the pair with the euro. The parameters for this pair should clearly be refined.
Money Cross test USD/JPY pair. The same time frame and method.
30% profit and quite few trades for the year. The Expert Advisor clearly needs more assets to trade, which must be constantly monitored. But the robot has potential, so it is quite possible to continue refining it. Especially for those traders who prefer to trade steadily with little risk.
Yesterday I wrote a strategy bot, bullshit. Just another tweak to the story. As always I have to use averaging. )))))))
Post your bot, let's compare.