Impulse ADX with averaging - MT4/MT5 Resources

Introduction:

This thread is dedicated to average optimization, backtesting and forward testing of EAs based on RSI and ADX.

The EA is developed on MT5, so the best settings can be optimized for multiple symbol combinations.

Thread rules:

Be a good person.

How to test an EA:

1. Use open price models and any time frame

2. Optimize for 3-7 years – find the best/stable settings

3. Then verify for 3 years. For example, use 2010-2017 data for optimization. The EA knows nothing about 2017 - 2020 - so you can run a "future" strategy test and see how the EA and money management plan would work in "pseudo real life"

Learn how to test EA in this free video/text course (no registration required - just watch or read). It applies to MT4, but the concepts are also relevant to MT5.

Financial plan example Nr1:

Grid, Martingale, Average - all these systems will fail if there are not enough funds on the account. sooner or later. But it can be done with proper funding planning.

This is 1 option (we need to find out more...better):

1. Have $500 in your broker wallet (not your account)
2. Deposit $100 into the account and start the EA
3. When the account balance reaches $300 - withdraw $200 to the wallet and continue running the EA (risk/reward ratio 1:2)
4. When the account is forced to be liquidated - top up with $100 and continue the EA

Financial plan example Nr2:

You can know the maximum drawdown from the EA backtest. Multiply this by 2 and that's how much money you need to run 1 EA instance with your optimized/backtested parameters.

Financial plan example Nr3:

You can optimize and find n- sign settings. Then add the maximum losses of all symbols, divide by n and get the average drawdown. Now multiply by 2.3 to get the funds required to run instances of the EA on n 1 accounts for various symbols/settings.

An EA running 0.01 lots will end up with a loss of $1000 - $3000. You'll see that in the backtest. If there are not enough initial funds, you can use a sub- account - then your withdrawal will be 100 - 300 USD.


EA strategy:

We strive to capture new trend impulses (the beginning of a trend). The ADX indicator indicates market sentiment (trend or range). The RSI indicator sends a directional signal (buy or sell).

Purchase items:
1) The previous candle ADX was higher than X (find the best X by optimizing parameters adx_level )
2) The previous candle RSI is higher than Y (find the best Y by optimizing parameters RSI_UP )

Sell ​​items:
1) The previous candle ADX was higher than X (find the best X by optimizing parameters adx_level )
2) Previous candle RSI is lower than Z (find optimal Z by optimizing parameters RSI_Down )

EA version Nr 1 is available for download:



Here is EA version Nr 3 available for download (open 2 opposite orders at once):



This article will be updated with details Nr.1.