[EA-Development]-M5-Swingtrader-Forex Markets Before and After 2007

 

hi.

i currently try to create a EA which is based on the (for me) one only thing you know in forex: the price goes up and down.

-you cannot predict how mutch it will move, but it moves. and if not you dont make loss/pofit, so it doesnt matter.

i am still in the very beginning of developing this strategy.


THE IDEA is: buy low sell high., and it does it trying to get all swings on M5. so its a highfrequent M5 TradeSystem

here is a pic of the way the EA trades:


these points i identify with the help of S/R-lines.

the system uses stacked entrys if the price moves below the first entrypoint. i know this sounds like Martingale but i divide the MAX-Risk-lotsize with the ammount of maximal re-entrys.

of course this means that it trades only with very low lotsize/trade. (Balance=10.000, lotsizes/trade=0.05)

i was quite surprised when i saw the first result on backtests. shure, a new holy grail. ;)

next step was to run the EA on different symbols. an the result? the same. without changing any of the parameter.

as you can see in the pictures, on all symbols the EA wins from 2000 until 2007 and the he loses.


i am quite new to forex so here is the question..

what happend to the market in 2007???

may some of the "older" guys in forex can give me a hint ;)


results:

AUSUSD:

EURJPY:

EURUSD:

thx in advance.

//zzuegg

 

ZZ

> Maybe some of the "older" guys in forex can give me a hint ;)

If you put up a chart of EURUSD on the D1 timeframe and add the ATR indicator (20 period), you will see what you need

2007 was a warning of the action to come in 2008, very quiet in the first half, surges of action in the second

Quite different to prior years....

Now you'll have to excuse me, nurse is calling to give me my tonic ;)

-BB-

 

Ahhh feel better after a lie-down - my memory returns...

IIRC May-Dec 2007 saw trending EA's definitely strengthening & maybe range traders reducing profit

Similarly Jul-Nov 2008 again saw trending EA's doing well

FWIW

-BB-

Reason: