FULL CODE | GOLD & BITCOIN Trading Robot | BackTest 90% WIN | Tight StopLoss

Summary

This video provides an in-depth guide on modifying a scalping EA (Expert Advisor) to work across different trading assets, including Bitcoin, Gold, and US indices like NASDAQ and Dow Jones. The script discusses the importance of real testing, backtest results, and different session timings (e.g., London and New York overlaps). It highlights the challenges in volatile and sideways markets, the role of tight spreads and brokers in successful trading, and the need for aggressive trailing stop losses. The tutorial concludes with tips on optimizing and further filtering strategies for better performance.

Takeaways

• 😀 The EA has a 90% win rate in Forex, but its performance is best in trending markets and struggles in sideways or volatile conditions.
• 😀 Backtesting showed impressive results with a €1,000 balance growing to €433,000, but real-world performance can differ from backtest results.
• 😀 Bitcoin, Gold, and US Indices require different stop loss and take profit strategies due to their volatile price fluctuations, compared to Forex.
• 😀 The EA performs best during the overlap of the New York and London sessions, especially in Forex and US indices, but less so in the Asian session.
• 😀 In crypto (Bitcoin) trading, stop loss and take profit are defined as percentages of the asset price, which adjusts dynamically as prices change.
• 😀 A dropdown menu is added to select trading profiles (Forex, Bitcoin, Gold, US Indices), which adjusts risk parameters and system settings.
• 😀 The trailing stop loss function is crucial for this EA, and it relies on brokers who allow tight trailing stops for effective trade management.
• 😀 The performance results (win rate, drawdown) are based on backtesting, but forward testing in a live demo environment is necessary to validate these results.
• 😀 The EA can be modified for different asset classes like oil by applying the same percentage-based strategy for stop loss, take profit, and trailing stop loss.
• 😀 Brokers need to support aggressive trailing stop loss settings for this strategy to work effectively, as the EA depends heavily on it for locking in profits.
• 😀 Future updates will include additional filters to improve trading accuracy, such as avoiding trades when the price is too far from the moving average or during news events.

Q & A

What is the main focus of the video?

The video primarily focuses on demonstrating how to modify an Expert Advisor (EA) designed for Forex trading so that it can be applied to Bitcoin, Gold, and US indices (such as NASDAQ and DOW Jones).

What are the results of the backtesting performed in the video?

The backtest results show impressive performance with a 90% win rate for both long and short trades. Starting with a balance of €1,000, the EA ended up with a balance of €433,000 on Bitcoin, €124,000 on Gold, and €124,000 on US indices, with a relatively low drawdown of around 10%.

What are the key points the EA performs well with?

The EA performs well during trending market conditions, where the market moves clearly in one direction. However, it struggles during sideways, choppy, or volatile markets.

Why is forward testing more reliable than backtesting for EA performance?

Forward testing is more reliable because it reflects real market conditions, unlike backtesting, which is based on historical data and may not capture future market dynamics. Forward testing allows you to evaluate how the EA reacts in real-time over an extended period.

What adjustments are made for using the EA on Bitcoin, Gold, and US indices?

The main adjustment is in how the stop loss and take profit are calculated as a percentage of the market price due to the volatility of these assets. The system uses different profiles for each asset type, such as Forex, Bitcoin, Gold, and US indices.

What is the role of the trading profiles in the EA's modifications?

The trading profiles categorize the variables for Forex, Bitcoin, Gold, and US indices. These profiles allow the user to select the asset type and apply specific parameters (like TP and SL as percentages) based on their chosen asset, which gives flexibility in optimizing the EA for different market conditions.

How are the trading hours set for Bitcoin in the EA?

The trading hours for Bitcoin are set from 7:00 AM to 9:00 PM on a 5-minute chart, but these hours can be customized depending on the user's preferences or market conditions.

Why are very tight spreads crucial for the success of this scalping EA?

Scalping requires executing a large number of trades in a short amount of time, and tight spreads are essential to minimize transaction costs. Without tight spreads, the cost of trading may erode the EA's profitability.

What is the impact of brokers on the EA's effectiveness?

The broker plays a crucial role in the EA's performance, particularly in allowing very tight trailing stop losses. Brokers that don't permit tight stop losses can render the EA ineffective because the strategy relies on aggressively trailing the stop loss to lock in profits.

What is the next step in optimizing the EA as discussed in the video?

The next step in optimizing the EA, as discussed in the video, involves adding filters, such as avoiding trades when the price is too far from the moving average, when RSI is above 75 or below 25, or when major news events are upcoming. These filters are designed to tighten the trading conditions and further improve performance.