Exp_ColorMETRO_MMRec_Duplex
This EA trades both directions (duplex) based on the ColorMETRO trend indicator signals, incorporating money management with recovery logic (MMRec). It systematically enters long or short positions when the ColorMETRO indicator changes color to signal trend direction, and applies position sizing and recovery mechanisms after losses.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
Not backtested yet — this EA could not be converted automatically.
Strategy analysis
The strategy concept is based on color changes of the ColorMETRO indicator to determine trend direction, which typically displays market trend states as multi-colored bars or lines. Entry conditions trigger when the indicator color transitions from one state to another, such as going long when the color shifts from bearish to bullish, and vice versa for shorts. The Duplex design means the EA trades in both directions either simultaneously or alternately, not restricting to a single direction. Exit conditions likely include the indicator color reversing again, fixed take-profit/stop-loss levels, or trailing stops. For position sizing, MMRec indicates a money management recovery mechanism that may adjust lot sizes after losses to attempt recovery, similar to a mild martingale approach but potentially with upper limit controls. Money management may include fixed lots, risk percentage, or dynamic position sizing based on account balance. The overall strategy is trend-following in nature, but the MMRec recovery mechanism adds complexity to money management and may increase position sizes during consecutive losses, leading to accumulated risk.
Strengths
- Trend-following logic based on ColorMETRO indicator is clear and intuitive, with straightforward entry signals
- Duplex dual-direction design enables profiting from both uptrends and downtrends without missing any trend direction
- MaxRecoverySteps limits recovery steps, preventing unlimited position increases that could blow the account
Weaknesses
- The MMRec recovery mechanism is essentially a loss-increasing strategy where positions grow multiplicatively during consecutive losses, posing significant risk
- Relies on a single indicator (ColorMETRO) for trading decisions without multi-dimensional confirmation, prone to frequent false signals in choppy markets
- Trend-following strategies generate numerous false signals and consecutive losses in ranging markets, which triggers the recovery mechanism and rapidly amplifies risk
Possible improvements
- Add multi-indicator confirmation (e.g., RSI, MACD, ATR) to filter false signals and reduce ineffective trades in choppy markets
- Replace the MMRec recovery mechanism with ATR-based dynamic position sizing that adjusts lots based on market volatility rather than loss history
- Add a market regime detection module to pause trading during ranging periods or switch to a mean-reversion strategy
Risk assessment
Overall risk: Caution
- MMRec recovery mechanism progressively increases position sizes during consecutive losses, and while limited, still poses significant drawdown risk
- Single-indicator dependency generates consecutive losing signals when trends transition to ranges, compounding with the recovery mechanism to potentially rapidly deplete capital
- Lack of new bar check may cause multiple entries on the same bar from repeated signals
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
LotSize | 0.1 | Trade lot size per order |
StopLoss | 500 | Stop loss in points |
TakeProfit | 1000 | Overall take profit target in points |
MMRecoveryFactor | 1.5 | Post-loss recovery multiplier for adjusting next lot size |
MaxRecoverySteps | 3 | Maximum recovery steps, limits consecutive additions |
TrailingStop | 300 | Trailing stop distance in points |
MagicNumber | 12345 | Unique order identifier number |
Timeframe | H1 | Timeframe used for trading |
MaxSpread | 30 | Maximum allowed spread |
MaxOpenPositions | 2 | Maximum simultaneous positions |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.