Currency Strength EA 3.0
This EA calculates the relative strength of individual currencies by analyzing multiple currency pairs simultaneously, then trades the strongest versus weakest currency pairs based on momentum divergence. It uses a systematic approach to identify imbalances in currency strength across the forex market and enters trades when the strength differential exceeds configurable thresholds.
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 | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| GBPUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| USDJPY | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| XAUUSD | 0.00% | 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
- Has no stop loss or trailing stop
On its own this is not a typical blow-up pattern, 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 currency strength analysis, which measures the relative strength of each major currency (such as USD, EUR, GBP, JPY, etc.) by evaluating its performance across multiple related currency pairs. Entry conditions are triggered when the strength differential between the strongest and weakest currencies exceeds a configurable threshold, buying the strong currency and selling the weak currency to form a trade. Exit conditions include reaching take profit targets, stop loss triggers, or when the currency strength differential converges below a certain level. Position sizing is typically based on either fixed lot sizes or a percentage of account balance, depending on parameter configuration. In terms of money management, the EA supports configurable risk ratios and maximum position limits. The strategy is fundamentally a cross-market momentum approach that exploits correlation divergences between multiple currency pairs to identify trading opportunities, combining medium-to-long-term trend following with momentum in a systematic trading methodology.
Strengths
- Multi-pair comprehensive analysis provides a broader market perspective and reduces single-pair noise interference
- Currency strength momentum logic is clear and well-founded, with the strongest vs weakest pairing offering statistical edge
- Systematic trading approach eliminates emotional decision-making with highly configurable parameters
Weaknesses
- Currency strength calculation depends on multiple currency pair data; missing data for any pair can distort strength readings
- During extreme market volatility or structural changes in currency correlations, historical strength relationships may break down
- Simultaneous monitoring of multiple currency pairs increases computational complexity and data dependency, making it sensitive to network latency
Possible improvements
- Add dynamic strength threshold adjustment that automatically optimizes entry conditions based on market volatility
- Incorporate correlation filters and session filters to avoid trading during low liquidity periods or when correlations are abnormal
Risk assessment
Overall risk: Medium
- Simultaneous positions across multiple currency pairs can lead to concentrated correlation risk, with multiple positions losing simultaneously during extreme market conditions
- Currency strength is a lagging indicator that may produce delayed signals during trend reversals, leading to losses
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
CurrencyStrengthPeriod | 14 | Currency strength calculation period |
StrengthThreshold | 4.0 | Strength difference entry threshold |
StopLoss | 500 | Stop loss in points |
TakeProfit | 1000 | Take profit in points |
LotSize | 0.1 | Trading lot size |
RiskPercent | 2.0 | Risk percentage |
MaxPositions | 3 | Maximum positions |
Timeframe | H1 | Analysis timeframe |
MagicNumber | 29362 | Magic number to filter orders, 0 for all |
CurrenciesToAnalyze | 8 | Number of currencies to analyze (major currencies) |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.