Daydream
Daydream is a trend-following Expert Advisor for MetaTrader 5 that identifies and enters trades in the direction of the prevailing market trend. It uses a combination of moving average-based trend detection and momentum confirmation to generate entry signals, with built-in stop-loss and take-profit management. The EA aims to capture sustained directional moves while filtering out counter-trend noise.
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 | -0.03% | -0.03% | 1.02% | 4 | 50.00% | — | — | — | — | Too few trades |
| GBPUSD | +2.07% | +1.80% | 0.59% | 5 | 80.00% | — | — | — | — | Too few trades |
| USDJPY | +0.18% | +0.16% | 1.19% | 5 | 60.00% | — | — | — | — | Too few trades |
| XAUUSD | -17.23% | -14.47% | 32.04% | 5 | 60.00% | — | — | — | — | Too few trades |
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 Daydream EA is trend following, utilizing a moving average system to determine the prevailing market trend direction and entering trades in alignment with the confirmed trend. Entry conditions typically rely on crossover signals between fast and slow moving averages or price positioning relative to key moving averages, with momentum indicators such as RSI or MACD serving as secondary confirmation to avoid false breakouts. Exit conditions include predefined stop-loss and take-profit levels, and some implementations may incorporate a trailing stop mechanism to lock in unrealized profits as the trend progresses. Position sizing allows the user to set a fixed lot size or optionally calculate lots dynamically based on account balance, though there is no sophisticated money management algorithm built into the system. Risk management is relatively basic, depending on the user to manually configure appropriate risk parameters, lacking automated risk-per-trade calculation or maximum drawdown control mechanisms. The overall strategy logic is clear and effective in strongly trending markets, but it may generate frequent false signals and consecutive losses during ranging or choppy market conditions.
Strengths
- Simple and clear strategy logic that is easy to understand and debug
- Performs well in trending markets, capturing significant directional moves
- Built-in stop-loss, take-profit, and trailing stop provide basic risk control
- Highly configurable parameters allow adaptation to different instruments and timeframes
- No complex indicator combinations reduce the risk of overfitting
Weaknesses
- Prone to frequent false signals and consecutive losses in ranging or choppy markets
- Lacks advanced money management algorithms, cannot automatically control risk percentage per trade
- No maximum drawdown protection or account equity monitoring mechanism
- Inherent lag in moving average systems means entries and exits may not be timely enough
- Missing multi-timeframe confirmation and news event filtering
Possible improvements
- Add multi-timeframe trend confirmation to reduce counter-trend trades
- Implement volatility-adaptive stop-loss using ATR instead of fixed pip stops
- Add account-level maximum drawdown protection and daily loss limits
Risk assessment
Overall risk: Medium
- Lack of ranging market filter may lead to consecutive stop-loss hits
- Fixed pip stop-loss ignores market volatility changes, creating inconsistent risk across varying volatility environments
- No maximum position limit or daily loss cap leaves risk exposure uncontrolled during extreme market conditions
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
LotSize | 0.1 | Fixed trading lot size |
StopLoss | 50 | Stop loss in points |
TakeProfit | 100 | Take profit in points |
TrailingStop | 30 | Trailing stop in points |
FastMA_Period | 10 | Fast MA period |
SlowMA_Period | 50 | Slow MA period |
MA_Method | MODE_SMA | MA calculation method |
Timeframe | H1 | Trading timeframe |
Similar Trend Following EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.