EA-21743 · Trend Following

55 MA

This EA uses a 55-period Moving Average as its core indicator to identify and follow market trends. It opens buy positions when price crosses above the 55 MA and sell positions when price crosses below, riding the trend until a reversal signal occurs. The strategy is a classic trend-following system based on the well-known 55-period MA popularized by turtle trading methods.

Open the interactive view (equity curve, symbol switch)

Key facts

RiskMedium
Blow-up riskLow
Rating★★☆☆☆
TypeTrading EA
TimeframesH1, H4, D1
IndicatorsMA
AuthorCopyright © 2009, costy_

Backtest results (H1, about 1 year)

SymbolP&LAnnualMax DDTradesWin rateSharpeRecoveryLosing streakPer tradeStatus
EURUSD0.00%0.00%0.00%0—————Conversion problem
GBPUSD0.00%0.00%0.00%0—————Conversion problem
USDJPY0.00%0.00%0.00%0—————Conversion problem
XAUUSD0.00%0.00%0.00%0—————Conversion problem

Why this EA never traded: the conversion compares two identical indicators (the fast and slow settings were lost), so they can never cross.

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 strategy concept is based on the 55-period Moving Average trend following, which is a classic single-MA breakout system. Entry conditions trigger a buy when price crosses above the 55 MA from below and a sell when price crosses below from above, representing a typical trend-following entry approach. Exit conditions rely on the reverse crossover signal of the MA - closing longs when price breaks below the MA and closing shorts when price breaks above it. Position sizing may employ fixed lot sizes or ATR-based volatility-adjusted position calculation based on common implementations of this type. Money management in single-MA systems typically lacks comprehensive risk controls, making it susceptible to frequent false signals during ranging markets that lead to consecutive losses. The strategy excels in strongly trending markets but suffers from whipsaw losses during sideways consolidation periods.

Strengths

  • Strategy logic is simple and clear, easy to understand and verify
  • The 55-period MA is a well-validated trend following parameter with statistical significance
  • Capable of capturing large trend moves in strong trending markets with excellent risk-reward ratio

Weaknesses

  • Single MA system generates frequent false signals in ranging markets causing consecutive losses
  • Lacks filtering mechanism to distinguish between trending and ranging market conditions
  • No explicit stop-loss and take-profit settings, resulting in insufficient risk control

Possible improvements

  • Add trend filter such as ADX or multi-timeframe confirmation to reduce false signals in ranging markets
  • Implement ATR-based dynamic stop-loss and take-profit to adapt to market volatility changes
  • Add position sizing module that dynamically adjusts lot size based on account risk percentage

Risk assessment

Overall risk: Medium

  • Single MA system generates frequent false trading signals in sideways markets
  • Lack of hard stop-loss protection may cause significant losses during extreme market moves
  • No new bar check mechanism may lead to repeated position opening on the same signal

Evaluation scores

Code quality3.0
Strategy logic3.0
Risk management2.0
Robustness2.0
Innovation2.0
Documentation2.0
Overall2.3

Parameters

ParameterDefaultDescription
MA_Period55Moving average period
MA_MethodMODE_SMAMoving average calculation method
MA_Applied_PricePRICE_CLOSEMoving average applied price
LotSize0.1Trading lot size
StopLoss0Stop loss in points
TakeProfit0Take profit in points

Similar Trend Following EAs

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

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