What kind of EA is the expert advisor "Miw" that accumulates profits by simultaneously performing both trend following and contrarian trading?
This EA accumulates profits by simultaneously performing trend-following and counter-trend strategies. Counter-trend involves averaging down (martingale).
It does not perform technical analysis; it trades based solely on positioning.
Why was such an EA created?
There are trend-following and counter-trend approaches to the market.
When the market goes up, you buy with the trend-following approach and sell with the counter-trend approach.
In addition, trend-following is suited to trending markets, while counter-trend is suited to non-trending markets.
This EA trades using both trend-following and counter-trend simultaneously. The counter-trend involves averaging down.
By doing so, this EA can profit from any market environment.
Profits come from: trend-following gains + gains from averaging down on counter-trend trades + swaps (positive when favorable).
Because of this concept, there is no need to fixate on precise entry points.
If you are not in a position, you can open both directions; if the market moves up, the buy position follows the trend and gains unrealized profit, but the sell position becomes counter-trend and incurs unrealized loss, so you average down to raise the average selling price. Eventually, the market reverses and falls below the average selling price, at which point you close all positions. This yields profits from both the buy and the sell sides.
As described, this EA does not analyze the market; it focuses on the relationship between market conditions and current positions to trade, which is its main feature.
There are other EAs that use this averaging-down logic to trade in only one direction. Details arehere.
Operation is simple: use a 1-hour chart and leave it running.
Any currency pair is OK.
The data below are backtest results for AUD/JPY.
This currency pair relatively suits this EA. In this test, about 3.5 years increased 1 million to over 3 million.
Detailed data ⇒st_audjpy.htm
For backtest results of other currency pairs, please seepast articles.
EA Miw Cross Order & Averaging
This article is an excerpt from the blog “Watching freely to spread makes the market a tool of fortune.”
