Trading strategy M.A.S.R_Trading

In the 10th issue of ForTrader.org we will consider the M.A.S.R_Trading strategy. To work, we will only need the MA indicator.

Trading strategy algorithm

Time period: H4;

Instrument: EURUSD;

Volume: 0.1 lot;

Indicator: Moving Average with a period of 5.

Buy signal

The MA indicator has formed a bottom - a downward inflection.

Sell signal

The MA indicator has formed a top - an upward inflection.

Exit from the deal

We will exit the deals by stop order. At the inflection point (bottom and top) we determine for Buy the minimum price value for 10 bars in history, for Sell the maximum value for 10 bars in history and place a stop order at this level. We check each time a bottom is formed for Buy and a top is formed for Sell and modify the stop order if necessary.

Testing the strategy

Having tested the above rules from 2007.01.11 to 2008.01.11, we obtained the following results (By opening prices):

Even with standard data, the results are not disappointing at all, but give hope that optimizing the AI runtime will remedy the situation. Optimization of the parameters revealed the best result at MA period 108, on the same period it gave us the following result of the expert's work:

As the experts expected ForTrader.org magazineThe result was positive, the profit for the same period amounted to $1458. Of course, the number of deals for the year is confusing, there are only 19 of them, but the profitability index of 3.70 and expectation of 76.74 are pleasing. Let's check the stability of the strategy results for the future period 2008.01.11 through 2008.04.25.

And on this section the strategy showed profitability of 2.50 and expectation of 71.43 - an excellent result.

Maybe then other currency pairs won't make profits, let's check it out.

Let's take a couple GBPJPY, we optimize the parameters in the period from 2007.01.11 to 2008.01.11. The best result was given by period 59. Let's see:

The result was also positive, the profit amounted to almost $3000. But the number of deals for the year has decreased even more, there are only 7 of them, but the profitability has increased 7.24, and the expectation is fantastic - 427.65. Let's check the stability of the strategy results on the future period 2008.01.11 through 2008.04.25.

And on this section (2008.01.11 to 2008.04.25) the strategy did not hit the dirt and showed profitability of 5.70 and expectation of 117.26. Let's calculate it quite a successful long-term trading instrument.

To summarize

The strategy pleases with profitability and expectation indicators both on historical data and at forward teste. Of course, the number of trades for such a large period of time is not satisfactory, but this is not a disadvantage, but rather a reason to develop the strategy. For example, we can include in the optimized parameters the indicator responsible for the number of bars in the history, on which we are looking for a stop order (MA.S.R_Trading _02 Expert Advisor). Or add to the strategy the possibility to add new trades to the existing ones that are in the plus. The simplest move is to optimize it to work on smaller timeframes. Go ahead Good luck.