"Dow Theory" Auto Trading EA - High Win Rate Type - ☆Main Overview & Features Billionaire Traderthe method used by Billionaire Traders, 「Dow Theory trend reversal initial move – Zone near the 3rd wave to targetan MT4 automated trading program that performs automatic entries & exits. Dedicated for simultaneous operation of five currencies: USDJPY, EURJPY, EURUSD, GBPJPY, GBPUSD. Installation method：MT4 EA (Expert Advisor) & Indicator installation procedures -Table of contents-(Click/Tap to go to explanations) ①The basis for entries isDow Theory ②Entry timing uses 8 methods. Selection is also possible

Method 8

・EMA20 Granville's Rule ・MACD×3 Signals （MACD cross with signal, direction of the signal, MACD crossing the 0 line） ・Candlestick price action "Engulfing" ・Candlestick price action "Spike Up/Spike Down" ・Parabolic ・ADX (DMI) ③Big-picture recognition (environment recognition) is automatic. ➃Variable take-profit system included ⑤Time TheoryIncluded ⑥Five currencies become one,enabling both buy and sell directions ⑦Swap-focused

☆All-tick test from 2012.01.03 to 2025.01.31

Lot size settings: 0.1 LOT (10,000 units) Initial margin: 1,000,000 JPY

Spread: 10 consecutiveEntryLimit (Consecutive Entry Limit): Off

Common basic specifications: 1-hour time-frame trend-following, day trading to swing trading (day-swing)

Test results for currencies other than GBPJPY can be downloadedhere(PC only)

♢Billionaire Trader's automated 1-hour trend-following buy/sell EA—raretype

The 1-hour trend-following approach has historically had fewer trades and less flashy performance than scalping, but this product maintains a balanced trade count.

Also, for those already using scalping EAs, entry timing differs, providing diversification.

♢Per-trade spread/fee impact is low,so spreads of 20–30 can still be workable.

Since the focus is on the 1-hour chart, the per-trade spread/fee impact is lower than that of scalping methods, so it supports spreads up to 30 (MT4 display).

Even with brokers offering favorable services but wide spreads, this can be effectively utilized.

 

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①Principle isDow Theory-based judgment.

♢Entry is determined by Dow Theory trend reversal

Dow Theory trend reversals have two approaches

Dow Theory①Trend reversal (break of swing low / return high)

Buy: the return high (neckline) from the lowest point is broken by the candle body

Sell: the price closes below the neckline when the swing high is broken

Dow Theory②Trend reversal (higher highs & higher lows)

Buy: Higher highs / higher lows

Sell: Higher highs / lower lows

The entry points targeted by this EA are

Dow Theory① and Dow Theory ② trend reversals that are both achieved

or

Dow Theory① necklines break not achieved,but Dow Theory ② trend reversals with higher highs and lower lows may be achieved

These two patterns over a certain period form the basic entry areathat serves as the basic entry point.

♢Why Dow Theory?

When more investors place buy orders, price goes up; when more place sell orders, price goes down. The Dow Theory is widely observed, so if you can read it, you can ride the market direction. Of course, accuracy is not 100%, but we attempt to increase the probability of aligning buy/sell directions based on Dow Theory.

Since many investors monitor Dow Theory, mastering it helps align with market movement. Of course, not guaranteed, but we aim to improve success probability by using Dow Theory as a foundation.

In daily terms, just as in daily life, when rain comes you take an umbrella; in war you carry weapons; in sunlight you use sunscreen and a parasol—optimal actions are consistent even after occasional failures.

Similarly in FX,Dow Theory as a foundationis used to,to repeatedly perform advantageous actions with high probability to aim for profitability.

Dow Theory-based trend-following support system (DTS)

♢What is the DTS Support System? (EA version 10 onwards)

Automatically detects higher highs and higher lows. It buys only on rising highs and blocks counter-trend selling, and sells only on falling lows, blocking counter-trend buying.

It does not merely rely on past patterns or test results; it flexibly adapts to actual market movements.

To enter based on Dow Theory, the system automatically evaluates trends from 4-hour to 1-hour timeframes, detects momentum of prior waves, references current price position, and consults past support/resistance lines.

The system continuously monitors the states of 2–3 candles ago (as per Wilder's definition).

Once running, the program begins collecting data to discern Dow Theory conditions.

②8Methods Entry timing is diversified. You can also choose your preferred method.

After Dow Theory trend reversal, six methods are prepared for entry timing (to capture pullback reversals).

1.「EMA20 Granville's Rule」

Buy: Moving average is rising + the low touches the moving average + close is above the moving average

Sell: Moving average is falling + the high touches the moving average + close is below the moving average

Exponential Moving Average

（Exponential Moving Average）

This entry position combines momentum and pullbacks.It often clears both Dow Theory ① and ②.

MACD

2.MACD cross with signal

Parameters：Short-term EMA12, Long-term EMA26, Signal9

Non-identical timing EMA momentum systems' signals mutually correlate to yield strong entry performance.

5.Candlestick price action

Image: Actual auto-entry scenario

Engulfing price action on candlesticks triggers the entry position.

☆ Engulfing (strong) meaning?

The candle initially moves opposite, then reverses and the previous two highs/lows are breached by the prior close.

6. Candlestick price action

「Spike High・Low」

After a Dow Theory trend reversal, a candlestick price-action turning signal produces a spike, triggering an entry position.

☆ Spike foot (Low/High) meaning

A long upper wick or lower wick on a candle indicating a turning signalappears.

7. Parabolic

Parameter: 0.02; bullish/bearish

Parabolic (Parabolic SAR) is a technical indicator used to visually determine trend direction and reversal points.

Developed by J. Welles Wilder Jr. as a trend-following indicator.

It aligns with Dow Theory's emphasis on higher highs and higher lows, hence adopted.

Displaying Parabolic can create an impression of high win-rate, but in practice it is difficult to profit from it alone.

The reason is similar to other indicators: when used in isolation, big-picture recognition may be insufficient, or entries near tops/bottoms may occur for various reasons.

This EA uses Parabolic in combination with Dow Theory from multiple angles, applying it only in situations where profitability is likely, thereby enhancing Parabolic's effectiveness.

7.ADX（DMI）

Period: 14 Parameter: ADX 15 or higher ADX 28 or lower

ADX (Average Directional Index) measures how strong the trend is.

It focuses on the momentum or strength of the trend.

Composed of DMI (Directional Movement Index)

Used with \"+DI\" (upward momentum) and \"-DI\" (downward momentum)

Key feature is that it not only provides buy/sell signals but also includes ADX indicating trend strength.

Settings with ADX above threshold help ride trend momentum and avoid ranges.

Settings with ADX below threshold help prevent overheated trends and reversals.

♢Each method can be turned on/off

※If methods are limited, its trading frequency for the off methods will decrease accordingly.

☆Actual entries with the 8 methods

After Dow Theory reversal, various famous indicators trigger signals to diversify investment,

and entries/exits occur at different timings.

(In the higher edition all methods activate

♢When a position is held, a comment shows which method entered the position.

♢ Comment display proves the EA is well-programmed

Rather than operating the EA vaguely,

once a position is held, displaying technical indicators on the 1-hour chart for verification is enjoyable..

※Those with confidence can stop auto-entry after confirmation and close positions manually.

③Big-picture recognition(

♢What is Big-Picture Recognition?

Trading direction should align with a larger timeframe than the entry timeframe to significantly improve trading accuracy.This is the fundamental idea behind FX trading.

For example, even if the entry timeframe suggests a buy, if a larger timeframe is moving bearish, one would be swept into the downward flow, so alignment is pursued.

In this EA, this big-picture recognition is standard and automatically monitors the 4-hour and daily situations relative to the 1-hour timeframe. The system can monitor multiple charts 24/7, which is a strong point.

Environment recognition is essential, but manually switching charts to check can be time-consuming; this system reduces the effort and automatically discriminates according to market conditions.

Moreover, the lower-timeframe environments such as 30m, 10m, 5m, and 1m are monitored as well.This is programmed in.

Discretion (your own timing) cannot cover this scope, and the system can instantly discern and consistently take advantage of high-confidence actions over time to aim for profitability.

Big-picture environment recognition has no parameter fields and is fully automatic, so there is no judgment drift, misses, or mistakes.

Also, even if Dow Theory is achieved, entries are not made everywhere; only in environments where results are likely are entries taken, so if the situation is judged unfavorable, a "pass/no action" defensive state is entered to maintain disciplined trading.

④Variable Take-Profit System

Positions meet certain conditions and enter a trailing-profit state. Take-profit targets vary with market conditions.

☆What is variable take profit?

・When profits are likely to expand, target 2:1 or higher risk/reward to pursue larger profits.

Thus take-profit targets flexibly adapt.

☆Maximum take-profit settlement
When a certain price range is reached, it is judged as a peak and settles without trailing..

Normally, take-profit is achieved via trailing profit and peak take-profit.

⑤Time Theory Included

Not only price movement up and down, but the horizontal time axis is strongly considered.

In addition to Dow Theory determinations, entry timing after trend reversals is designed to capture the initial momentum within a defined window.

From the time of the trend reversal onwards, the system seeks to avoid entries at chart points where the move has extended too long or energy has been exhausted, whether the price is rising or falling.

"Enter intensively at the initial momentum of the trend and do not enter during the trend stagnation period."

A mechanism to increase edge through repetition is implemented.

⑦5 currencies as one,enabling both buy and sell directions

With five currencies combined as one, profitability improves, and the lack of investment opportunities is offset, delivering a powerful risk distribution effect.Further, buy and sell adapt to market conditions and global events, continually gravitating toward the favorable side.

Rather than relying on preconceived notions or gut feel, act according to a proven edge—“buy in uptrends and sell in downtrends”—and continuously adapt to the market.

⑦Swap-focused mode included

+Swaps buy/sell direction can be freely set

Settings can be configured in the EA parameters screen.

Set the method to "High Win Rate" type and use only "+Swap buy direction" or similar as needed.

Example: For USDJPY, set to Buy + Swap direction only.

This EA permits negative swap for maximizing profits; normally both buy and sell are ON. However, for those concerned about negative swap or who prioritize stability over maximum return, this feature is provided.

*Settings are optional, but this EA achieves maximum performance by earning profits from both buying and selling; if you disable either side, trading frequency decreases.

Stop loss placement is designed to be balanced and automatic, reducing management burden.

☆Loss limits (stop loss) and risk management

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With auto-trading active, stop-loss is automatically triggered.

However,

• You may not know where to place a stop loss.

These concerns are common, but this EA places stop loss at the most balanced level automatically, removing the worry.

1. Normal Stop Loss

After entry, the stop loss is automatically placed with performance in mind and it functions accordingly.

2. Trailing Stop

3.Time Break-Even.Time Break-Even

If after entry the price moves favorably but then returns toward break-even and time passes, the system may close positions to prevent further risk, minimizing potential damage.

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♢Risk Management

This EA is designed to maximize performance, and risk is accepted as a necessary factor for high returns.However, due to its nature, risk always exists and is not a "set-and-forget" system.

Please conduct pre-emptive risk management to suit your circumstances.

Point 1 Positions may exceed 10at times Initial settings of 0.1LOT (10,000 units) may hold more than 100,000 units Potential large loss risk at expected large losses is -100,000 ~(-10%)

To avoid unforeseen losses, adjust lot size and the maximum number of positions in accordance with your funds.

☆Determine lots from allowable loss (%)

Example: With 1,000,000 margin, to limit loss to -50,000 (-5%), set 0.05LOT.

☆Management method: set maximum number of positions.

Example: Set maximum positions to 1 to cap holdings at 1 position (10,000 units).

☆Adjust LOT size based on outcomes.

Example: When +200,000, increase by 0.01LOT.

☆Increase LOT size over time as results accumulate.

Example: If positive, increase by 0.01LOT every 30 days.

For initial understanding, we recommend testing on a demo first.

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Q. How long until results are seen?

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Q. What kind of win rate do you achieve?

☆There are times like this

We assume long-term winning, and tests closely match real results; EA tends to have steady wins but the time to realization can be longer than expected.

Even if the 1-hour Dow Theory is breached during drawdown, the 4-hour chart often re-bounces as a last line of defense.

If the 4-hour is breached, larger stop losses can occur, but this is a necessary downside to maintain overall profitability. You must accept the risk.

However, stop losses are well executed, so you won't accumulate excessive drawdown; see the maximum drawdown in the metrics.

Also, even on the 1-hour chart, this is still a form of short-term trading; compared to ultra-short-term 5-minute charts, it can take time to see results, which may feel frustrating at times.

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☆Special Notes

・If a Dow Theory reversal occurs during drawdown, but stopping immediately would reduce performance, entries may continue.

・Chart interpretation varies by individual; disagreements on which points constitute lower lows or higher highs may arise. Please review the public buy/sell history on this page and consider before purchasing.

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☆Automation benefits

Humans cannot process within the same speed; automated processing is instantaneous.

・Even amid work, chores, parenting, travel, and important events, automated entries and settlements continue.

・No need for indicator alerts

Even if alerts are received, market moves and may be missed if acting manually.

This EA automatically enters/exits when indicator alert points are reached, making it highly efficient—the morning check suffices.

・Trading occurs during late-night hoursIn overseas markets, nighttime in Japan occurs; entering or exiting during this time is impractical.

・Don't miss opportunities

・No need to place limit orders or stop orders precisely.

Compared to discretionary trading, the system reduces human error.

・Time efficiency

This system monitors aspects that cannot be fully covered by discretion, making it suitable for those who are interested in FX but lack time, have busy schedules, or tend to trade emotionally.

☆In conclusion

FX is about executing highly optimized actions based on features such as Dow Theory, risk-reward, and propulsion-adjustment waves to gain an edge.All you need to do is implement these actions consistently.

However, discretionary (your timing) often leads to emotional hesitation; many struggle to persevere despite finding a correct method.

"Follow the rules and win overall"

Indeed, if you play a strategy with little chance of success, you are likely to lose; however, even with the correct approach, persisting can be difficult due to fear of continued losses.

With this automated EA, you won't need to invest vast time in FX research.

repeatedly applying high-edge actions toward consistent profits will guide you toward a fundamental investing approach—progressing toward profitability with a smooth equity curve.

Please consider this product.

☆Developer Articles

・Product Manual (settings needed after purchase)

・How to read data on the System Trading page