The peculiarity of the Smart Investments Expert Advisor is that it is essentially a seven trading systems united in one trading robot. It trades four different symbols using seven totally different trading strategies. This allows you to diversify risks by reducing the possible maximum drawdown and receive a smoother profitability curve. Since the robot trades three weakly correlated symbols (EURUSD, GOLD and USDJPY) applying fundamentally different trading systems to each of them, the diversification turns out to be quite efficient.
The Smart Investments Expert uses following trading systems:
- Three systems for EURUSD are based on well-known market price action phenomena described, for instance, in papers of the famous trader Larry Williams:
- The "Breaking through" trading system is based on market entry in the direction of price momentum.
- The "Rolling back" trading system is based on several candlestick patterns which give signals of potentially good moment to enter "on a back movement".
- Extremely "long standing" over the last decade calendar pattern or, in other words, a variation of DayOfWeek (DOW) strategy.
- System for GOLD is based on calculation of significant market levels, passing which the price of the asset is more likely to move in the same direction. The system provides opening a position in the right "direction". A trade remains open long enough to let the price achieve the movement potential. A stop loss is placed simultaneously with opening a trade. The stop loss value depends on the current market situation. Test average annual profitability – 61%, maximum historical drawdown – 33%.
- The system for USDJPY detects patterns that may indicate good moments for buying or selling the Japanese yen. The system provides opening a position in the right "direction". A trade remains open long enough to let the price achieve the movement potential. On the average, position is kept open for 1-5 days. A stop loss is placed simultaneously with opening a trade. The stop loss value depends on the current market situation. The following results have been obtained on historical data: average annual return is 55%, while maximum historical drawdown is 47% (during the crisis of 2008).
- Two systems for USDCHF are similar to systems 2 and 3 for EURUSD.
Since MetaTrader 4 strategy tester does not allow users to perform multicurrency tests, you can test the EA on each symbol separately. However, if you want to receive the test values of the system portfolio, you should apply the available means of combining trading reports together (for example, using the freeStrategyQuant EA Analyzer program).
None of the seven strategies apply potentially dangerous "gambling" methods, like martingale, averaging, locking, waiting out the losses and others that have nothing in common with conservative trading. On the contrary, the EA applies three main trading rules: timely loss limitation (stop loss is placed at the moment of entering the market), (stop loss is placed during the market entry), keeping profitable positions open for as long as necessary and diversification. Therefore, the EA trading has nothing in common with scalping or "pipsing". Instead, the EA performs mid-term trades holding from one to several days.
So, what are the results of our thorough backtesting of Smart Investments EA? The backtests show the average annual profitability of 65%, while the maximum historical drawdown is 20%. The maximum historical drawdown of 20% means that if the loss of 20-30% from the last profitability maximum is received, trading may be stopped, as the trading system has apparently lost its efficiency in the current market situation.
We constantly develop new and improve existing strategies. All owners of Smart Investments get free updates for the robot, and thus they get all the new trade systems for free!
Settings
Attention! Run only one instance of the EA on EURUSD H1. The trading robot will trade using all strategies on all required symbols! (ATTENTION! The necessary symbols should be added in Market Watch window, their charts should be open in the terminal). For the MetaTrader strategy tester, use H1 timeframe.
- a7 - enable/disable strategies.
- l1 - set a fixed lot for each strategy. If 0.0, the built-in ММ is used.
- dd - set the risk level for calculating an autolot.
- n1 - specify how trading symbols are named by your broker.
Dear customers, we bring to your attention that the Smart Investments EA proves its effectiveness in real trading, at the moment it manages the PAMM-account which is now on 1-st place in one of the world's biggest broker - Alpari, PAMM Rating. Smart Investments its not kind of "gambling" scalping or some toy EA. Smart Investments it is your investments in your future! Also, if you like only some strategies of Smart Investments EA, you can buy my other products which are nothing but individual parts of Smart Investments EA.
