Mnikolic Investment Technologies
intelligent investment technologies™
Mnikolic Investment Technologies
intelligent investment technologies™

This strategy has a balanced risk profile, meaning you'll get 2-3 signals a day but with higher probability. The setup uses lot size of 0.2 with a take profit of 43.5 pips and a stop-loss of 250. We're using a wide stop-loss solely as a back-up in case trend suddenly reverses as it did during Brexit - nearly all of the trades are closed by take-profit orders and pyramided reversals (e.g. when buy becomes sell, all long positions are closed and short are opened). If you'd like to increase signal frequency lower the Probability parameter but you will lose accuracy in the process and increase trading expenses (spread, commissions, etc.).

Strategy Designation: MSP2021
Target Market: Euro/Dollar (EUR/USD)
Target Time Frame: 5-minute (M5)
Broker Feed: OANDA

Key MarketScalper PRO settings:

Probability: 5
Algorithm Version: 2016
Take Profit: 45 pips
Stop Loss: 250 pips
Lot Size: 0.2
Maximum Positions (pyramiding): 5 (0.2 x 5 = 1 lot)
Spread: 2 pips
Slippage: 1 pip

Key Performance Statistics

Strategy Style: Scalping, Balanced, Intraday, High Probability
Return on Investment: 22.32%
Maximum Drawdown: 10.28%
Total Trades: 123 (approximately 2-4/day)
Bars in test: 25342 (approximately 4 months: April 1, 2016 - July 28, 2016)

Here's a full video recording (screen capture) of this strategy's live backtesting, complete with real-time equity curve.

The Maximum Positions variable controls the maximum number of positions open at any given time (for example, if you get multiple consecutive signals in the same direction). Maximum Positions and lot size are risk controllers because they collectively indicate maximum position size - in this strategy case 0.2 lots x 5 positions = 1 full lot. Returns can be increased by increasing the lot size but maximum drawdown (risk) will also proportionally increase. For example, doubling lot size to 0.4 would double the return on investment to 44.64% and double the maximum drawdown to 20.56%. Make sure you are not over-leveraged to avoid margin call. Generally speaking, we do not recommend leverage greater than 40:1 for any trading strategy.

For those who own the official MarketScalper PRO EA, download and load (in Metatrader4 go to EA settings >> Load) the attached .set file to replicate settings showcased in the strategy below.

Existing clients can download the latest version of MarketScalper PRO from their licensed software portal. The software can be purchased through our store. If you already own MarketScalper PRO's indicator add-and would like to purchase the accompanying EA, see this page.

Full Strategy Report and Testing (via MarketScalper PRO EA)

Period5 Minutes (M5) 2016.04.01 00:00 - 2016.07.28 15:25 (2016.04.01 - 2016.07.29)
ModelEvery tick (the most precise method based on all available least timeframes)
ParametersMarketScalper PRO 2016 EUR/USD MSP2021 Optimization
Bars in test25342Ticks modelled2108203Modelling qualityn/a
Mismatched charts errors10629
Initial deposit10000.00Spread20
Total net profit2232.00Gross profit4776.00Gross loss-2544.00
Profit factor1.88Expected payoff18.15
Absolute drawdown283.60Maximal drawdown1113.20 (10.28%)Relative drawdown10.28% (1113.20)
Total trades123Short positions (won %)72 (63.89%)Long positions (won %)51 (58.82%)
Profit trades (% of total)76 (61.79%)Loss trades (% of total)47 (38.21%)
Largestprofit trade90.20loss trade-259.20
Averageprofit trade62.84loss trade-54.13
Maximumconsecutive wins (profit in money)11 (795.80)consecutive losses (loss in money)5 (-339.20)
Maximalconsecutive profit (count of wins)795.80 (11)consecutive loss (count of losses)-339.20 (5)
Averageconsecutive wins3consecutive losses2

Complete trade log and a preconfigured Metatrader 4 EA .set file are available on the user community forum.

Marko Nikolic
President and Chief Developer
July 28, 2016, Toronto, Canada

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