Code＝RED GBPJPY_M5 double-sided Martin

I want to leave EA alone as much as possible.

Code=RED has a typical trend-following logic that uses the short-term leg to reverse the direction of the long-term trend. Therefore, it is necessary to be alert to economic indicators.

However, if I have to be in front of the chart when the EA is running, just because it is an indicator, I feel that it is "no different from discretionary trading.

While taking this into account, we have eliminated the need to manually shut down the EA by adding restrictions to the logic so that it can be operated as much as possible without being left alone.

As a discretionary trader myself, I believe that the real appeal of EAs is that after they are installed, "there is no discretion to stop operation for indicators or during the year-end and New Year holidays.

Therefore, we have basically created the system with the assumption that it can be left alone to operate once it is up and running.

Measures for larger indicators

Even though the logic is restricted, the win rate is still significantly reduced if the spread is wide open during major indicators.

A spread filter is included to accommodate this.

Please set the spread to about 1.5 times the average spread of your broker. (Default value 5 pips)

Setting example ➝ For example, if the average spread under normal conditions is 2.0 pips, please set it at about 4.0 pips.

Behind the 90%+ win rate

The basic logic of Code=RED is based on the discretionary method of "confirming the trend direction of the long-term leg and setting up a countertrend on the short-term leg.

However, even if such logic is successfully implemented in an EA, a high win rate cannot be expected as in the case of discretionary trading, where the trader can recognize the environment before and after the trade, and losses are frequently incurred.

Therefore, taking advantage of automated trading, which does not involve any emotion, we will use a martingale to pyramid the trade by trading both sides of the trade at the position where the trade would normally end in a loss.

When the profit/loss turns positive, all settlements are made and the balance is accumulated, keeping the win rate abnormally high.

When the entry logic is assembled to trade only where there is an advantage in this mechanism, the EA is transformed into an EA that can generate large profits despite low drawdowns.

Passed 18 years of back testing

It is true that one of the weaknesses of EAs is that they may only win at certain times of the year.

In the market, there is a method that matches the market at that time, and by creating an EA with specialized logic for that method, you can create an EA that can explosively increase assets.

However, this may render the EA useless as soon as the market movement changes.

Code=RED has "passed a long-term back-test of 18 years".

The 18 years included many financial shocks such as the Lehman Brothers collapse, the Flash Crash, and the new Corona Crash, but we have achieved steady growth without suffering any significant losses.

In addition, to ensure that the system will not fail regardless of the timing of the start of operations, we have back-tested the system starting from January of each year, and all the tests have been completed.

The maximum DD is low even though it is a martingale type!

One of the weaknesses of EAs that use nanpinning and martingales is that the maximum drawdown can be large.

On the backtest, the drawdown period comes after the funds have been built up, which causes a discrepancy in which the amount of losses exceeding the initial funds does not cause a collapse.

If that maximum drawdown occurs in the early stages of operation, "that EA will fail in an instant.

Code=RED tested various aspects and carefully examined entry timing to ensure that profits can be accumulated from 2006 to 2023 without breaking the bank, no matter which timig from 2006 to 2023 you start.

As a result, if we assume that we started the operation with 1 million yen, the maximum DD is limited to 200,000 yen to 350,000 yen over the 18-year period, no matter where we start. (about 270,000 yen at the time of the 18-year backtest)

This could allow for an average annual interest rate of 20% and the possibility of consistently increasing funds.

The low maximum DD allows for compounding!

When operating an EA, the lot to set is a concern. Especially for beginners, it is difficult to know how much money and how much lot is appropriate and when to increase the lot size.

Therefore, we have included a compound interest function in Code=RED. This compound interest function also serves as fund management on the assumption that EA operations will not fail, and limits the funds that can be used to 1% to 2% of the margin.

However, just setting the compound interest function to 1% has resulted in a profit that is almost double the result of trading with the recommended lot under normal conditions.

(Please be aware of your broker's minimum lot limit when using the compound interest feature. For example, if the minimum lot size is 0.01 lot = 1,000 currencies, the minimum margin requirement is 1,000,000 yen.)

Pricing

At the time of development, efforts were made to eliminate the risk of bankruptcy as much as possible, but while the martingale-type EA generates large profits in a short period of time, the risk of bankruptcy at the time of future operations is the risk of single-shot positions.

It is undeniable that the price of EA is higher than that of EA. Therefore, we offer a low price for the time and effort required for development.

About Parameters

This section describes the parameters that can be set.

(1) Select whether to use the compound interest function. If 1% of margin is less than 0.01 lot, please use "false".

(2) Enter the number of lots when the compound interest function is not used. (The recommended margin for 0.01 lot = 1,000 currency is 500,000 yen, and for 0.01 lot = 10 currency is 10,000 yen.)

Select either 1% or 2%. No higher risk tolerance can be set.

(4) Set the magic number. Set the magic number so that the number will not be shared with other EAs.

(5) Set the size of the spread at which entry is allowed. Set it to about twice the average spread of your broker. (The default value is 5 pips).

(6) You can set whether or not to use martingale when pyramiding both positions. Please note that if martingale is not performed, the number of positions will increase and the EA will not perform as it should.

precautions

*This EA does not guarantee profits. Please note that losses may be higher than in past tests depending on future market conditions.

Back testing was conducted with a fixed spread of 3.0 pips. Spreads higher than 3.0 pips may result in significantly poorer performance.

*The setting values other than the Release Parameter cannot be changed because they may significantly deteriorate the performance of the EA. Please be aware of this when using the EA.