Sapphire Strat Maker – Strategy Types (Part VI) – Trading System – April 18, 2024
1. Introduction
This is what follows sapphire strat maker and Sapphire Strat Maker Alt (Free) professional advisor (Enjoy the price discount while it’s still active!) – This is an EA that allows you to create your own strategy without coding. That’s the beauty of this expert advice. Create your own strategy, be creative and no longer be tied to a single strategy. Optimize the parameters to find the best set and you are ready to go!
Some of these features are only available in the full version.
Check out our other blog posts before continuing.
Today we’ll look at different categories that can help you create your own strategy. sapphire strat maker (Or at least help you with the process of developing your own EA.)
2. Types of strategies
In thinking about new strategies, I typically define three main categories, two of which are broken down into two other sections.
As you can see, there are three main types: trend strategy, countertrend strategy and integrated strategy.
trend strategy and countertrend strategy It can also be divided into momentum and reversal strategy.
momentum Strategies try to capture current movements. If there is a trend, we follow the direction of the trend. If it’s a countertrend, we try to follow the direction of the countertrend (and therefore the countertrend).
reversal This is quite the opposite. In other words, we expect that the current movement will not continue and will be reversed. Therefore, when used in a trend strategy, we expect the movement to go against the trend. When used in a countertrend strategy, it is expected that the trend will reemerge and continue.
This definition can be visualized in a table like this:
| – | momentum | reversal |
|---|---|---|
| enforce | – | – |
| tendency | Follow current trend movements | Expect the trend to reverse (usually at overbought/oversold levels). |
| counter trend | Follow the current countertrend movement | A reverse trend expected (Usually overbought/oversold levels) |
Dividing your strategy like this allows you to create a robot that can operate in a variety of market conditions and reduce your losses. Imagine a position where you buy into an uptrend and sell into the same uptrend. Depending on how you structure your EA, both can be profitable (but you can also lose both, but a good robot portfolio can handle that).
Let’s take a look at how we can come up with a strategy and define the best indicators/parameters for it.
In this example countertrend reversal strategy. Since it is a countertrend, we need to define a way to determine which direction the trend is going. Next is a reversal, so we need to check for indicators that will tell us a good point where this reversal has gone too far.
There are two very interesting indicators that do this. moving average and slow stochastic.
This strategy assumes that if the price is above the moving average, it is in an uptrend, and if the price is below the moving average, it is in a downtrend. You should also buy when an asset is oversold and sell when it is overbought. These conditions can be easily detected if the stochasticity is less than 20 and more than 80, respectively.
We also add ADX to check the current trend power and optimize the parameters to see better performance. That is, I want to know the optimal period, what value to compare ADX to, and whether it is better if ADX is below. or above this level). Optimizations for moving averages and stochastic periods were also performed. All other indicator parameters were left at default values.
The parameters selected for the metric after optimization are:
The entry signal was defined as: Current closing price moving average (counter trend), when the slow stochastic is below the oversold level and below level 20 ( reversal). The sell position is based on the current closing price moving average (counter trend), when the Slow Stochastic is above the overbought level and above level 80 ( reversal).
I found that to open both types of positions, your ADX after optimization needs to be below level 25.
The conditions were set as follows.
There are many options to choose from for tp/sl. Let’s choose the simplest method. You earn profit by a certain amount of ticks. Stop loss is the tp value multiplied by another value. Both are optimized.
After optimization, the result is:
For the sake of simplicity, we will not set any other options such as risk management, trailing stop loss/take profit, breakeven, etc.
Volume is set to 0.1. The period is M15. The testing period is from 2018.04.01 to 2024.04.01. My balance is $1,000.00. modeling is Only the price is disclosed.
Now that you’re ready to get started, here’s the result:
Pretty good!
You can also use Slow Stochastic to buy/sell trend strategies (e.g. above or below 50 levels) and many other (30+ or custom) indicators included in the EA.
ps.: Be careful. This does not guarantee future returns.
ps2.: This test was conducted at a broker offering small EURUSD spread derivatives. charge . The results already include this commission. Therefore, the results may differ from yours. If so, optimize your strategy to fit your needs.
