3SMA
This EA uses three Simple Moving Averages (SMA) of different periods to determine trend direction and generate trading signals. It typically enters long when the fast SMA is above the medium SMA which is above the slow SMA, and short when the reverse alignment occurs. Exits are triggered when the SMA alignment breaks or crosses in the opposite direction.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
| Symbol | P&L | Annual | Max DD | Trades | Win rate | Sharpe | Recovery | Losing streak | Per trade | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| EURUSD | -1.09% | -0.95% | 6.90% | 90 | 42.70% | -0.22 | -0.16 | 7 | −$1.60 | Reliable |
| GBPUSD | -6.04% | -5.27% | 9.62% | 97 | 38.50% | -0.91 | -0.63 | 5 | −$6.53 | Reliable |
| USDJPY | -0.15% | -0.13% | 5.67% | 88 | 40.20% | 0.00 | -0.03 | 6 | +$0.01 | Reliable |
| XAUUSD | -90.05% | -85.15% | 97.91% | 62 | 38.70% | 0.34 | -0.92 | 9 | −$145.25 | Account stopped out |
Profitable on 0 of 4 markets with reliable results.
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.
Against the other Trend Following EAs with a reliable result on the same market: EURUSD: better than 44% of 95 · GBPUSD: better than 12% of 95 · USDJPY: better than 53% of 95 · XAUUSD: better than 16% of 96
Month by month
| Market | Months with a gain | Best month | Worst month |
|---|---|---|---|
| EURUSD | 46% | +1.85% 2026-01 | -2.14% 2026-03 |
| GBPUSD | 31% | +1.45% 2026-09 | -2.39% 2026-02 |
| USDJPY | 54% | +1.72% 2026-08 | -1.87% 2026-03 |
| XAUUSD | 38% | +77.46% 2026-03 | -79.38% 2026-07 |
From the backtest equity curve, sampled about every two days; only reliable results.
Blow-up risk: High
- Has no stop loss or trailing stop
- Hit a stop-out in our backtest (equity below 10%) on XAUUSD
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 concept of the 3SMA strategy is to determine market trend direction and strength through the alignment order of three Simple Moving Averages with different periods (short-term, medium-term, long-term). Entry conditions are: open long when the three SMAs show bullish alignment (short > medium > long), and open short when they show bearish alignment (short < medium < long). Exit conditions are typically triggered when the SMA alignment is broken, i.e., when the short-term MA crosses the medium-term MA in the opposite direction. Position sizing generally uses fixed lots or calculates lot size based on a percentage of account balance. Money management may include stop-loss and take-profit settings, but the specific SL/TP logic depends on parameter configuration. The strategy's strength is its simple and clear logic that can effectively capture medium to long-term trends, but it is prone to frequent false signals and repeated losses in ranging markets.
Strengths
- Simple and clear strategy logic, easy to understand and debug
- Effectively captures medium to long-term trending markets with substantial profits in trends
- Triple MA filtering reduces the number of false signals compared to single or dual MA crossovers
Weaknesses
- Generates frequent false signals with repeated losses in ranging/choppy markets
- Moving averages are inherently lagging indicators, causing significant delay in both entries and exits
- Default parameters may lack stop-loss settings, posing significant capital risk
Possible improvements
- Add ADX or volatility filter to reduce trade signals during ranging market conditions
- Implement dynamic stop-loss such as ATR-based stops or trailing stops to improve risk management and profit protection
Risk assessment
Overall risk: Medium
- Default stop-loss may be zero, lacking hard risk control protection
- Trend-following strategy may experience consecutive losses and significant drawdowns in ranging markets
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
SMA_Fast_Period | 10 | Fast SMA period |
SMA_Medium_Period | 50 | Medium SMA period |
SMA_Slow_Period | 200 | Slow SMA period |
Lots | 0.1 | Fixed lot size (used when MMRec disabled) |
StopLoss | 0 | Stop loss in points |
TakeProfit | 0 | Take profit in points, typically set at gap close |
MagicNumber | 12345 | EA magic number for order identification |
Similar Trend Following EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.