Thoughts on my system - 5 EMAs


it’s my first post here, so hello to everyone :slight_smile:

So here’s what i’m confused about: I designed my first (!) Expert Advisor for Metatrader about three days ago. And it gives me pretty good results, one could even say “too good” results for a beginning newbie, so i’m wondering, if i’m missing something.

The system uses 5 Exponential Moving averages on 5 minute chart. EMAS go as follows - 30 bar, 90 bar, 270 bar, 810 bar and 2430 bar. When all five of them gather together, i place buy stop order above the price and sell stop order below the price. I place many small orders, the number of orders depends on how long the EMAS-s stay together. And i use no other technical indicators.

I havent traded the system yet, i have only backtested it on Metatrader strategy tester. The results are pretty good - backtester showed me profit even on 4 years - from september 2004 to september 2006. But i somehow think that this is too easy :frowning: and that i’m overlooking something.

So, i would be very thankful, if you could just quickly check out my results - Strategy Tester: breakout and give me some hints, what is the mysterious thing that i’m overlooking.

It’s for last 12 months, and the drawdown is pretty high. But then again, i’m not planning to start trading with only 3000 USD, so if i traded the same system say with 10 000 USD, the drawdown would’nt be so bad, but the results would still be rather ok.

regards, turm0il

Hi mate,

My biggets concern would be your win % ratio. At under 40% successful trades, you may have asome serious psychological difficulties. I realise that this is what ‘cutting your losses and letting your profits run’ means, but in practise it’s real hard to wear many losses in a row, regardless of how small they are.

In my current system I have a win % of just over 70% AND my avergae win is still larger than my average loss.


Thanks for pointing that out! I can only imagine how crappy i would feel while having my 227 consecutive losses in a row!