||Technical & Fundamental
||16th May 2017
Momentum Capture Master
Learn more about Momentum Capture
Fully automated trading with a momentum strategy that trades during the hours after speeches from central bankers or other central bank events.
No martingale or averaging used. Every position has a clearly defined stop loss, usually between 20-100 pips.
It does not trade very often, but historically it has been good in catching the momentum afterwards without too much risk in periods of low volatility.
Therefore, the EA can be seen as a "long-term volatility bet".
After detecting strong price action and momentum, it will open positions in trend direction as well as pending orders for a possible reversal.
The Following symbols will be traded:
EURUSD,EURJPY,EURAUD,EURCAD,GBPUSD,USDCAD,USDCHF,GBPJPY,AUDJPY,USDJPY,AUDUSD,EURGBP,EURCHF and CADJPY
The maximum number of market orders is 20 and the maximum number of pending orders is 32. So 52 orders in total, but usually there should not be more than 16 open per event because market orders will probably hit SL before pending orders get executed.
On 5000 EUR the master account will usually open up to 16 orders with 0.03 lots. Therefore, the total lotsize of open orders for 5000 EUR would be 0.48, so basically a maximum leverage of 10 (but at least 30 is needed because of pending orders).
Due to the trade logic of the EA it might happen in rare cases after a strong reversal move that there will be a signal for a market order while also a pending order is open from the initial movement. Therefore, there could be exceptions where a few more orders are open than explained above. Since historic backtests are better leaving the logic as it is, I am not interfering with these orders. Also if there are two events from different currencies then it might lead to more positions, but the given values of 20 market and 32 pending orders is the absolute maximum.
If you prefer less use of leverage, please adjust the risk multiplier accordingly!
If there are any open trades, they will be closed on Friday 20:00 (GMT), so there should not be any exposure over the weekend.
The historical maximum drawdown in an 8-year portfolio backtest starting 2010 was about $250-300 per 0.01 lots and 16 max orders, so about 15% for the current settings on a 5000 EUR balance. The maximum stagnation period was 99 days in the portfolio backtest.
In (optimized) backtests the current settings would have more than 70% a year, but considering optimization bias 30-40% is probably more realistic. Of course, no one can predict the future. We can only judge from historic tests and live trades.
The backtest can be downloaded here: https://c.mql5.com/6/802/MomentumCaptureEA_v2.2_portfolio.zip