CCI + 2 x EMA EA robot

Summary

The video script discusses a forex trading strategy using CCI and moving averages, implemented in an EA. It explains the strategy's entry and exit rules, improvements made to avoid trading at trend ends and in sideways markets, and EA settings. The speaker shares backtesting results on different market conditions and offers the EA for download, with options to obtain a live version.

Takeaways

• 😀 The speaker discusses a forex trading strategy using CCI and moving averages, which they have turned into an Expert Advisor (EA) for automated trading.
• 📈 They backtested the EA on three random years to evaluate its profitability, demonstrating how the strategy operates in different market conditions.
• 📊 The strategy involves selling when the fast moving average crosses below the slow moving average, and buying when the fast moving average crosses above the slow moving average.
• 🔍 Entry conditions include the CCI crossing below 100 for selling and above -100 for buying, along with specific candlestick patterns related to the moving average lines.
• 💰 The speaker set the EA's take profit at the lower low of the recent 100 candles for selling and the higher high of the recent 100 candles for buying, adjusting dynamically based on market movements.
• ⚠️ To manage risk, the EA modifies the take profit dynamically to the nearest 25 pips when the price falls, reducing potential losses.
• 🛑 The speaker improved the original strategy by adding filters to avoid trading at the end of trends and in sideways or ranging markets, which can be risky.
• 📉 The speaker suggests using the EA on different markets and timeframes, emphasizing the importance of backtesting in various conditions, especially during the challenging years of 2004-2005 and 2008-2009.
• 💼 The speaker provides instructions on how to download, install, and test the EA on the MetaTrader 4 platform, highlighting the need for thorough testing before using the EA with real money.
• 🏦 They mention the importance of choosing a broker that provides extensive historical data for backtesting, recommending Robo4x for its 20 years of data.
• 💬 The speaker offers to provide a free test version of the EA and a paid live version, with pricing options and conditions for obtaining the live version.

Q & A

What is the basic premise of the forex trading strategy discussed in the script?

The strategy involves using the CCI (Commodity Channel Index) and moving averages. It initiates a sell trade when the fast moving average crosses below the slow moving average, the CCI crosses below 100, and specific conditions regarding the opening and closing price of a candle are met. A buy trade is initiated under the opposite conditions.

What improvements were made to the original strategy by the script's author?

The author improved the strategy by adding a take profit level based on the lower low of recent 100 candles for sell trades and the higher high for buy trades. They also introduced a mechanism to modify the take profit to reduce risk when the price falls significantly and added a filter to avoid trading in sideways or ranging markets.

How does the EA (Expert Advisor) determine the take profit level for trades?

The EA sets the take profit level at the lower low of the recent 100 candles for sell trades and at the higher high of the recent 100 candles for buy trades. It also has a feature to auto-modify the take profit level to the nearest 25 pips if the price falls down significantly.

What is the significance of the 'sideways filter' in the EA's settings?

The sideways filter is used to avoid trading in sideways or ranging markets, which can be less profitable and more risky. It compares the high and low of the first 50 bars to the 60th to 120th bars to determine the market trend.

How can users obtain the EA file for backtesting?

Users can download the EA file from the website toto180.com. The download includes the EA itself, an example EA file, and additional files for setting up the chart design and EA settings.

What is the recommended process for backtesting the EA before using it with real money?

The script suggests backtesting the EA on different markets and years, particularly focusing on 2008 for a strong trending market and 2004 to 2006 for a ranging market. It also emphasizes the importance of downloading historical data and using the strategy tester in the MT4 platform.

What are the different versions of the EA files mentioned in the script?

There are two versions of the EA files: a test version that only allows trading on the strategy tester, and a live version that allows trading on both demo and live accounts.

How can users get the live version of the EA file?

Users can obtain the live version of the EA file either by trading with the author's affiliate broker, Robo Forex, or by purchasing the live version at different pricing tiers for one month up to one year.

What is the recommended approach for users who want to increase the number of trades opened by the EA?

Users can increase the number of trades by turning off the sideways filter, changing the time frame from H1 to M5 or M15, or trading all 25 pairs instead of just one.

How can users get support for setting up the EA?

Users can reach out to the script's author via email or Telegram for assistance, but support is provided only to those who have subscribed to the author's YouTube channel and liked the video.

What is the author's approach to testing the EA before recommending it to others?

The author emphasizes the importance of backtesting the EA for at least one hour to see if it loses all money and burns the account. This approach helps to avoid purchasing an EA that may not perform well in real trading conditions.