Thread: PentzParabolic v1.0

Howdy,

This is an EA I just finished writing and so far I'm happy with the results. I don't have much forward data but you can watch my live account (with real money) at MT4Live.com - Share Your MT4 Statements Free. It's only been running since Dec 7 but hopefully it will keep going up from there.

As the name implies, this EA uses the Parabolic SAR indicator to determine trend direction. It's also a modified martingale. The reason I call it "modified" is the multiplier default setting is 1.7. You can set it to something else because it's a parameter, but I highly recommend leaving it at 1.7. Because it uses a lower multiplier than 2, it's able to survive adverse market conditions much better.

The default settings have been optimized for the EURUSD pair at 1H. This EA can run on multiple pairs, but I highly recommend optimizing for a new pair before running live on it. I'm currently only running it on EURUSD on my live account because I don't have a high enough balance to support more than one pair. I recommend a minimum of $2000 balance before running it on more than one. Of course you can if you want, but since this is a modified martingale it needs room to breathe.

Here is a brief explanation of the parameters:

LotSize: Default is 0.01. This parameter is only used if the AutoLotSize parameter is set to False. Since this is a martingale EA, the lot size will increase after losing trades to compensate. This is the lot size it will reset to after winning trades.

LotStep: Default is 0.01. This parameter is only used if AutoLotSize is set to False. To increase profitability, this EA will increase the base lot size (the setting in LotSize if AutoLotSize is false) by this value when the account balance exceeds a multiple of the setting in LotSizeChangeAmount. For example, the LotSizeChangeAmount setting is $2500 (the default setting, by the way). For balances of $0 - $2499 the base lot size will be 0.01. For balances of $2500 - $4999 the base lot size is 0.02 (it increased by the setting in LotStep). For balances of $5000 - $7499 the base lot size will be 0.03 and so on. If AutoLotSize is True, the LotStep is determined by the type of account you have.

AutoLotSize: Default is True. I recommend leaving this set to True because the EA will handle lot size increases as your balance increases. You don't have to worry about it.

PipSpread: Default is 20. This is the base spread for new orders AFTER a winning trade. After losing trades the spread for new orders is increased by the setting in PipIncrement to make it more difficult to string together losing trades. OPTIMIZE THIS SETTING IF USING EA ON NEW PAIRS.

PipIncrement: Default is 8. The current spread is increased by this value after losing trades (the equivalent of the stop loss). OPTIMIZE THIS SETTING IF USING EA ON NEW PAIRS.

LotSizeChangeAmount: Default is $2500. As was mentioned, the EA uses this value to determine when to increase the base LotSize as the balance in your account grows. The base LotSize will increase at multiples of this value so as your balance increases the EA will make money faster.

Multiplier: Default is 1.7. I highly recommend leaving this setting at 1.7. You can increase or decrease it if you wish, but re-optimize and test on a demo account if you do.

SARstep: Default is 0.019. This is the Parabolic SAR Step setting. The explanation of this setting is beyond scope, but if you want to know more about it there are plenty of good online references. OPTIMIZE THIS SETTING IF USING EA ON NEW PAIRS.

SARmax: Default is 0.1. This is the Parabolic SAR Maximum setting. Again, if you'd like to know more check online references. OPTIMIZE THIS SETTING IF USING EA ON NEW PAIRS.

FreeMarginMin: Default is $100. This is a money management setting. If the free margin of your account falls below this value the EA immediately shuts down all open and pending trades and starts over. Yes you'll lose money, but you'll live to trade another day. The recommended setting for this is no more than 10% of your balance. If you set it too high the EA could hit it when it wasn't necessary and cause it to lose money.

That's it! This thing has been profitable and stable enough that I thought it was time to share. Please let me know if you're using it and making a profit! If you're losing money I don't want to know. Just kidding. If you are losing money let me know because it shouldn't be so there's probably a setting somewhere that could be tweaked.

Paul

Hi Ppentz,

I realy appreciate your work. And the detailed description. Congratulations.

I like to backtest it soon.

If the test done, I share the results.

Regards,


Denoiser

Originally Posted by ppentz

Howdy,

This is an EA I just finished writing and so far I'm happy with the results. I don't have much forward data but you can watch my live account (with real money) at MT4Live.com - Share Your MT4 Statements Free. It's only been running since Dec 7 but hopefully it will keep going up from there.

As the name implies, this EA uses the Parabolic SAR indicator to determine trend direction. It's also a modified martingale. The reason I call it "modified" is the multiplier default setting is 1.7. You can set it to something else because it's a parameter, but I highly recommend leaving it at 1.7. Because it uses a lower multiplier than 2, it's able to survive adverse market conditions much better.

The default settings have been optimized for the EURUSD pair at 1H. This EA can run on multiple pairs, but I highly recommend optimizing for a new pair before running live on it. I'm currently only running it on EURUSD on my live account because I don't have a high enough balance to support more than one pair. I recommend a minimum of $2000 balance before running it on more than one. Of course you can if you want, but since this is a modified martingale it needs room to breathe.

Here is a brief explanation of the parameters:

LotSize: Default is 0.01. This parameter is only used if the AutoLotSize parameter is set to False. Since this is a martingale EA, the lot size will increase after losing trades to compensate. This is the lot size it will reset to after winning trades.

LotStep: Default is 0.01. This parameter is only used if AutoLotSize is set to False. To increase profitability, this EA will increase the base lot size (the setting in LotSize if AutoLotSize is false) by this value when the account balance exceeds a multiple of the setting in LotSizeChangeAmount. For example, the LotSizeChangeAmount setting is $2500 (the default setting, by the way). For balances of $0 - $2499 the base lot size will be 0.01. For balances of $2500 - $4999 the base lot size is 0.02 (it increased by the setting in LotStep). For balances of $5000 - $7499 the base lot size will be 0.03 and so on. If AutoLotSize is True, the LotStep is determined by the type of account you have.

AutoLotSize: Default is True. I recommend leaving this set to True because the EA will handle lot size increases as your balance increases. You don't have to worry about it.

PipSpread: Default is 20. This is the base spread for new orders AFTER a winning trade. After losing trades the spread for new orders is increased by the setting in PipIncrement to make it more difficult to string together losing trades. OPTIMIZE THIS SETTING IF USING EA ON NEW PAIRS.

PipIncrement: Default is 8. The current spread is increased by this value after losing trades (the equivalent of the stop loss). OPTIMIZE THIS SETTING IF USING EA ON NEW PAIRS.

LotSizeChangeAmount: Default is $2500. As was mentioned, the EA uses this value to determine when to increase the base LotSize as the balance in your account grows. The base LotSize will increase at multiples of this value so as your balance increases the EA will make money faster.

Multiplier: Default is 1.7. I highly recommend leaving this setting at 1.7. You can increase or decrease it if you wish, but re-optimize and test on a demo account if you do.

SARstep: Default is 0.019. This is the Parabolic SAR Step setting. The explanation of this setting is beyond scope, but if you want to know more about it there are plenty of good online references. OPTIMIZE THIS SETTING IF USING EA ON NEW PAIRS.

SARmax: Default is 0.1. This is the Parabolic SAR Maximum setting. Again, if you'd like to know more check online references. OPTIMIZE THIS SETTING IF USING EA ON NEW PAIRS.

FreeMarginMin: Default is $100. This is a money management setting. If the free margin of your account falls below this value the EA immediately shuts down all open and pending trades and starts over. Yes you'll lose money, but you'll live to trade another day. The recommended setting for this is no more than 10% of your balance. If you set it too high the EA could hit it when it wasn't necessary and cause it to lose money.

That's it! This thing has been profitable and stable enough that I thought it was time to share. Please let me know if you're using it and making a profit! If you're losing money I don't want to know. Just kidding. If you are losing money let me know because it shouldn't be so there's probably a setting somewhere that could be tweaked.

Paul

Thx for sharing!

Be careful, back-tests show me there is no way to survive with this setting when it comes to heavy price movements, like in 10.2008, than the lot sizes are still way to big for such a small account.

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pc8multifx's page | Myfxbook

Thanks for sharing a question do both of those files the mq4 and ex4 both go in the expert folder or does one go in the indicators folder.
Thanks
Randy

Originally Posted by onu

Thx for sharing!

Be careful, back-tests show me there is no way to survive with this setting when it comes to heavy price movements, like in 10.2008, than the lot sizes are still way to big for such a small account.

---------------------------------------------
pc8multifx's page | Myfxbook

Thanks for the advice, but honestly I'm not too concerned with what happened in 2008. Conditions are different now and they will be different in the future which is why I will periodically re-optimize for recent conditions.

Paul

Originally Posted by randy1953

Thanks for sharing a question do both of those files the mq4 and ex4 both go in the expert folder or does one go in the indicators folder.
Thanks
Randy

Both go in the Expert folder.

Originally Posted by ppentz

Thanks for the advice, but honestly I'm not too concerned with what happened in 2008. Conditions are different now and they will be different in the future which is why I will periodically re-optimize for recent conditions.

Paul

U should be concerned. I trade marty style EAs since years and the past has shown, if u not prepared for the worst case, means the EA has to survive 10y backtest, than u get wiped out in no time.

Good luck!

Originally Posted by onu

U should be concerned. I trade marty style EAs since years and the past has shown, if u not prepared for the worst case, means the EA has to survive 10y backtest, than u get wiped out in no time.

Good luck!

10 years?? seriously?? Are there EAs that can actually survive a 10 year backtest?

Originally Posted by ppentz

10 years?? seriously?? Are there EAs that can actually survive a 10 year backtest?

Ofcourse! I trade only with such EAs! Everything else would be suicide...

Originally Posted by onu

Ofcourse! I trade only with such EAs! Everything else would be suicide...

Wow, I'm afraid I have to disagree. Back testing 10 years is meaningless. Going back more than a year is meaningless. All you're doing is eliminating a lot of profitable EAs.