I've been keenly into Mouteki lately. Let me start out that my post has little to do with Mouteki except for the concept of demand/supply lines.
It's occurred to me that the idea of supply and demand lines can give a signal of whether a market is trending or trading. For example, if one line exists, the market is probably trending. If neither or both line exist, it is probably choppy. If you have an EA that does well when the market is trending, then you can use supply/demand lines to determine if it's safe to trade. Vice versa for trading markets.
I've got an EA that does very well in trading markets. It does poorly when a trend occurs. So I've added code to check for supply and demand lines using the previous 20 candles.
My EA on 4H EURUSD, over the last 1 year, produced the following numbers posted below. The rule: if one supply or demand line exists, don't trade. If both a supply and demand line, or if neither exist, then trade.
Using 15-30 candles to find supply/demand lines is extremely important. With Demark_trend_new, I set it to 20. I believe Mouteki once said he prefers to use 25-30 candles.
At this point, I won't post my EA since it doesn't do well on other pairs, the code is a mess, and I doubt I'd ever go live with it.
Note: i only do trades on each new candle, so this uses "open price only". Although when using every tick, the drawdown goes down, so I'm not happy about that.
Bars in test 9262
Ticks modelled 18424
Modelling quality n/a
Initial deposit 1000.00
Total net profit 5215.04
Gross profit 10460.40
Gross loss -5245.36
Profit factor 1.99
Expected payoff 13.27
Absolute drawdown 35.54
Maximal drawdown 602.60 (10.43%)
Relative drawdown 19.14% (407.05)
Total trades 393
Short positions (won %) 245 (62.04%)
Long positions (won %) 148 (56.08%)
Profit trades (% of total) 235 (59.80%)
Loss trades (% of total) 158 (40.20%)
Largest
profit trade 262.20
loss trade -132.14
Average
profit trade 44.51
loss trade -33.20
Maximum
consecutive wins (profit in money) 16 (962.00)
consecutive losses (loss in money) 11 (-472.19)
Maximal
consecutive profit (count of wins) 962.00 (16)
consecutive loss (count of losses) -552.60 (9)
Average
consecutive wins 4
consecutive losses 3
It's occurred to me that the idea of supply and demand lines can give a signal of whether a market is trending or trading. For example, if one line exists, the market is probably trending. If neither or both line exist, it is probably choppy. If you have an EA that does well when the market is trending, then you can use supply/demand lines to determine if it's safe to trade. Vice versa for trading markets.
I've got an EA that does very well in trading markets. It does poorly when a trend occurs. So I've added code to check for supply and demand lines using the previous 20 candles.
My EA on 4H EURUSD, over the last 1 year, produced the following numbers posted below. The rule: if one supply or demand line exists, don't trade. If both a supply and demand line, or if neither exist, then trade.
Using 15-30 candles to find supply/demand lines is extremely important. With Demark_trend_new, I set it to 20. I believe Mouteki once said he prefers to use 25-30 candles.
At this point, I won't post my EA since it doesn't do well on other pairs, the code is a mess, and I doubt I'd ever go live with it.
Note: i only do trades on each new candle, so this uses "open price only". Although when using every tick, the drawdown goes down, so I'm not happy about that.
Bars in test 9262
Ticks modelled 18424
Modelling quality n/a
Initial deposit 1000.00
Total net profit 5215.04
Gross profit 10460.40
Gross loss -5245.36
Profit factor 1.99
Expected payoff 13.27
Absolute drawdown 35.54
Maximal drawdown 602.60 (10.43%)
Relative drawdown 19.14% (407.05)
Total trades 393
Short positions (won %) 245 (62.04%)
Long positions (won %) 148 (56.08%)
Profit trades (% of total) 235 (59.80%)
Loss trades (% of total) 158 (40.20%)
Largest
profit trade 262.20
loss trade -132.14
Average
profit trade 44.51
loss trade -33.20
Maximum
consecutive wins (profit in money) 16 (962.00)
consecutive losses (loss in money) 11 (-472.19)
Maximal
consecutive profit (count of wins) 962.00 (16)
consecutive loss (count of losses) -552.60 (9)
Average
consecutive wins 4
consecutive losses 3