Predictive EMA! With automatic SL calculation, we tightened it up to RR6.3.
We’re building an EA with FSM (finite state machine) AI.
It’s a trading system that trades with rules aligned to the market’s momentum.
Among those,
when the trade mode uses EMA (exponential moving average) as the signal
as the basis,
since I usually trade in a naked style,
I thought, “Entry... what a delay!”
and that happened.
In trading,
analysis speed equals quality
so I have to do something.
Anyway, I want to find turning points quickly
to narrow the SL
But the advantage of EMA signals is that
you can clearly see trend confirmation.
Originally, locating the starting point of a trend reversal is inherently slow due to its nature
however, since it strongly supports trend confirmation, I want to balance both.
So I tweaked the EMA formula a little
to change the EMA’s characteristics.
From Trend Confirmation Type
→ to Trend Prediction Type!
With this, EMA becomes strong at trend determination, so even with a risky, peak-prone design that goes in the opposite direction and would normally cause a quick loss, noise is minimized and outcomes are decisively determined
and I was able to narrow the SL to the limit.
That’s the result of the experiments.
↓ (the candles behave differently on TradingView and the broker, but the same day and time)
This power!
I designed the investment amount to be $100 (configurable) per trade,
and an automatic calculation system for lot size based on the entry to SL width.
So the investment amount remains fixed,
the narrower the SL width, the larger the potential move with less price movement.
A logic that captures profits with little movement.
It’s quite effective.
The predictive EMA has my excitement rising.
The main weapon of the EA currently under development is FSM (finite state machine) AI.
It trades by applying logic that suits the market’s movement.
This predictive EMA became a major weapon for one of the “trend starting points” in state transitions.
That moment was monumental.
Moved and inspired!
Then there are the logics for panic market conditions,
for trend-following periods,
and for price action before entry,
and various filters to determine the quality of trades.
We will continue developing these filters.
If a streak of losses occurs, we must switch to a method that’s compatible with the current conditions.
Because higher risk-reward (RR) directly improves defense, I want to keep extending it.
