Why does the Gold-only EA AurumTriEdge incorporate three logics? Verified by correlation analysis
Gold-only EA “AurumTriEdge_M5_XAUUSD_MT4” is equipped with three different trading logics.
The reason for including three logics is not simply to increase the number of trades.
By combining logics that target different market conditions, the design of AurumTriEdge also aims to reduce dependence on any single logic.
This time, for about 11 years and 6 months from January 2015 to June 2026, each logic was backtested individually.
We will confirm the profit-and-loss curves, performance of each logic, and the correlations between the logics.
Note: All backtests use the same conditions: XAUUSD, M5, fixed 0.1 lot, simple interest, and spread 30.
【Previous verificationsはこちら】
Three logics that constitute AurumTriEdge
AurumTriEdge is equipped with the following three logics.
【Logic 1: Trend Pullback】
A logic that checks the higher time frame trend and aims for pullbacks and retracements in that direction. It targets capturing relatively longer price moves.
【Logic 2: Morning Reversal】
While confirming the direction of the higher time frame, it aims for a rebound from overheated conditions around the morning in Japanese time. It has the highest trading frequency among the three.
【Logic 3: Trend Shift Breakout】
A logic that aims to catch trend reversals and subsequent breakouts. Trading frequency is lower, but it handles market conditions different from logics 1 and 2.
Because they enter under different conditions, even though they trade the same Gold, the timing of trades and the timing of profits and losses differ.
Backtest of Logic 1 alone
Logic 1 alone yielded a net profit of $23,873.91, a PF of 2.49, and 399 trades.
Maximum drawdown was $1,171.85, and relative drawdown was 8.71%.
Among the three, it has the largest net profit and is one of the logics supporting AurumTriEdge’s earnings.
Backtest of Logic 2 alone
Logic 2 produced a net profit of $11,467.10, PF of 1.72, and 649 trades.
Maximum drawdown was $1,008.13, and relative drawdown was 8.39%.
PF lags behind logics 1 and 3, but with 649 trades—the highest among the three logics—it plays a role in ensuring trading opportunities.
Backtest of Logic 3 alone
Logic 3 achieved a net profit of $6,628.20, PF of 2.35, and 215 trades.
Maximum drawdown was $834.70, and relative drawdown was 5.92%.
Although it has the fewest trades among the three, it records PF of 2.35 and serves as a complementary logic that targets different market conditions from logics 1 and 2.
Comparison of the 3 logics
Summarizing the backtest results of the three logics individually yields the following.
| Logic | Net Profit | PF | Max DD | Relative DD | Trades |
|---|---|---|---|---|---|
| Logic 1 | $23,873.91 | 2.49 | $1,171.85 | 8.71% | 399 trades |
| Logic 2 | $11,467.10 | 1.72 | $1,008.13 | 8.39% | 649 trades |
| Logic 3 | $6,628.20 | 2.35 | $834.70 | 5.92% | 215 trades |
Note: January 2015–June 2026, XAUUSD, M5, fixed 0.1 lot, simple interest, SP30.
Note: Relative DD (maximum drawdown) shows the maximum fall from peak assets during the backtest period as a percentage.
All three logics yielded positive net profits over roughly 11.5 years of backtests.
On the other hand, their characteristics differ.
Logic 1 has the highest net profit and PF, Logic 2 has the most trades, and Logic 3, while having the fewest trades, achieves PF of 2.35 and relative DD of 5.92%.
AurumTriEdge combines these three logics with different natures.
So, how closely do each logic’s profits and losses move in the same direction?
Next, we will check the daily profit and loss correlation among the three logics.
Correlations between logics are almost zero
Using daily profit and loss of each logic, we performed a correlation analysis, and the correlation coefficients are as follows.
Logic 1 × Logic 2: 0.03
Logic 1 × Logic 3: -0.01
Logic 2 × Logic 3: -0.02
A correlation coefficient closer to 1 indicates a tendency to move in the same direction, closer to -1 indicates a tendency to move in the opposite direction, and closer to 0 indicates a weaker linear relationship between the two.
All three logics of AurumTriEdgeare almost zero in every combination.
In other words, judging from the daily profits and losses during the backtest period,the three logics tended not to move in the same direction very often.
This is one of the reasons AurumTriEdge combines three different logics.
What happens to the maximum drawdown when combining all 3 logics?
In the standard AurumTriEdge with all three logics running, across 1,263 trades,
Net profit: $41,974.39
PF: 2.14
Max DD: $1,008.30
Relative DD: 7.21%
RF: 41.63
This is interesting in terms of the maximum drawdown.
Even when combining three logics, the maximum drawdown did not exceed the maximum of any single logic.
Logic 1 alone had a max DD of $1,171.85, but the three-logic AurumTriEdge achieved $1,008.30.
Simply adding logics does not make the maximum drawdown grow as the sum of each DD.
Because the timing of profits and losses differs across logics, a period of underperformance in one logic can be offset by another logic’s profit and loss.
The observed low daily profit correlation and the integrated backtest results align with AurumTriEdge’s design philosophy of diversifying risk by combining logics with different characteristics.
However, low correlation does not guarantee that losses will not occur simultaneously. Nor does it guarantee that future correlations or drawdowns will be the same.
Toward a Gold EA that does not depend on a single “strong logic”
In an EA, even very successful logic can stop functioning effectively for long periods when market conditions change.
Therefore, AurumTriEdge does not rely on a single logic, but
・pullbacks and retracements
・reversals during the morning hours
・breakouts from trend turnings
combine three logics that target different situations.
Each logic alone turns positive in long-term backtests, and the daily profit and loss correlation is also low.
The name “TriEdge” reflects the concept of combining three different edges to tackle Gold.
The MT4 version of AurumTriEdge is currently applying for listing on GogoJungle.
We will continue to publish the movements of the three logics in real operation while proceeding with live forward testing.
※ The results published here are based on backtests using historical data and do not guarantee future performance.
Latest real forward status
AurumTriEdge is continuing forward testing not only with backtests but also with real account trading.
Currently, all three logics are triggering real trades.
Since the trading environment differs from backtesting, we will continue to monitor the movements of the three logics in real operation.
【Past verification results of AurumTriEdge here】