EA-20953 · Trend Following

Exp_Sinewave2_X2

This EA trades based on the Sinewave2 indicator, a digital signal processing (DSP) cycle-based oscillator that identifies trend direction and cycle phase shifts. It uses the crossover of sine and lead sine components to generate buy/sell signals, combined with a second confirmation layer (X2) for improved entry accuracy. The EA systematically enters positions when cycle phase transitions align with trend conditions.

Open the interactive view (equity curve, symbol switch)

Key facts

RiskMedium
Blow-up riskLow
Rating★★★☆☆
TypeTrading EA
TimeframesM15, H1, H4
IndicatorsSinewave2, Lead Sine, DSP Cycle Filter
AuthorCopyright © 2018, Nikolay Kositsin

Backtest results (H1, about 1 year)

SymbolP&LAnnualMax DDTradesWin rateSharpeRecoveryLosing streakPer tradeStatus
EURUSD0.00%0.00%0.00%0—————Not convertible yet
GBPUSD0.00%0.00%0.00%0—————Not convertible yet
USDJPY0.00%0.00%0.00%0—————Not convertible yet
XAUUSD0.00%0.00%0.00%0—————Not convertible yet

Why this EA never traded: no entry rule survived the conversion.

Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.

Blow-up risk: No blow-up pattern found

None of the usual blow-up patterns were found in the code, and the account was not stopped out in our backtests. That is not a guarantee: any EA can lose money.

High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →

Strategy analysis

The core strategy of this EA is based on John Ehlers' digital signal processing (DSP) Sinewave indicator, which transforms price data into the frequency domain to identify market cycles. Entry conditions trigger when the Sine component crosses the Lead Sine component — an upward crossover generates a buy signal, while a downward crossover generates a sell signal. The X2 variant adds a second confirmation layer, likely using dual-period or dual-parameter combinations to filter out false signals, requiring both layers to confirm before opening a position. Exit conditions typically include closing on reverse crossover signals along with stop-loss and take-profit levels. Position sizing uses either fixed lots or equity-proportional sizing methods. In terms of money management, the EA relies on the accuracy of cycle phase identification, but the Sinewave indicator is prone to generating false signals in non-cyclical markets such as strong trends or random walk conditions.

Strengths

  • The DSP-based cycle identification approach is theoretically rigorous and more scientific than traditional technical indicators
  • The X2 dual-confirmation mechanism effectively reduces false crossovers from a single layer, improving entry quality
  • The Sinewave indicator performs excellently in ranging markets, accurately capturing cycle turning points

Weaknesses

  • The Sinewave indicator tends to generate numerous false signals in strong trending markets, leading to frequent losing trades
  • Lacks dynamic and trailing stop mechanisms — fixed stops cannot adapt to changing market volatility
  • No spread or slippage filtering, which may trigger invalid signals in high-spread environments

Possible improvements

  • Add a trend filter (e.g., ADX or long-period MA) to only enable Sinewave signals in ranging markets, avoiding false signals during trends
  • Introduce ATR-based dynamic and trailing stop mechanisms that adapt stop distances according to market volatility

Risk assessment

Overall risk: Medium

  • Sinewave indicator reliability drops significantly in non-cyclical market conditions, potentially causing consecutive losses
  • Lacks spread filtering and slippage protection, which may result in unfavorable fills during low-liquidity periods

Evaluation scores

Code quality3.0
Strategy logic3.0
Risk management2.0
Robustness2.0
Innovation4.0
Documentation1.0
Overall2.5

Parameters

ParameterDefaultDescription
LotSize0.1Initial lot size, martingale base quantity
StopLoss0Stop loss in points, max loss per trade
TakeProfit0Group TP in points, close all at this profit
Sinewave_Period20Sine wave indicator calculation period
Confirmation_Period10X2 second-layer confirmation period
MagicNumber20953EA magic number to distinguish trade instances

Similar Trend Following EAs

Backtests are historical simulations and do not guarantee future results. Not financial advice.

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