DeMarker gaining position volume 2
This EA uses the DeMarker oscillator indicator to identify momentum shifts and enters positions when the DeMarker value signals gaining momentum. It incorporates volume-based position sizing (volume 2) to scale trade size according to market volume. The strategy buys when DeMarker indicates oversold momentum reversal and sells when overbought momentum reversal is detected.
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 | +1.07% | +0.93% | 4.01% | 112 | 48.20% | 0.24 | 0.27 | 5 | +$0.95 | Reliable |
| GBPUSD | +0.88% | +0.77% | 4.82% | 115 | 53.50% | 0.18 | 0.18 | 4 | +$0.98 | Reliable |
| USDJPY | +1.63% | +1.41% | 5.37% | 112 | 53.20% | 0.35 | 0.30 | 8 | +$1.33 | Reliable |
| XAUUSD | +80.47% | +62.87% | 33.57% | 130 | 50.40% | 1.50 | 2.40 | 4 | +$64.30 | Reliable |
Profitable on 4 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 Momentum EAs with a reliable result on the same market: EURUSD: better than 69% of 68 · GBPUSD: better than 71% of 66 · USDJPY: better than 72% of 68 · XAUUSD: better than 85% of 75
Month by month
| Market | Months with a gain | Best month | Worst month |
|---|---|---|---|
| EURUSD | 54% | +1.37% 2026-06 | -2.19% 2026-02 |
| GBPUSD | 46% | +2.37% 2026-04 | -2.82% 2026-03 |
| USDJPY | 46% | +2.86% 2025-12 | -1.99% 2026-02 |
| XAUUSD | 54% | +62.01% 2026-02 | -7.51% 2026-04 |
From the backtest equity curve, sampled about every two days; only reliable results.
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 this EA is based on the DeMarker oscillator, a technical indicator that measures price momentum by comparing the current high price with the previous period's high to assess buying pressure. Entry conditions: open a long position when the DeMarker value crosses upward from the oversold zone (below approximately 0.3), and open a short position when the DeMarker value crosses downward from the overbought zone (above approximately 0.7). Exit conditions rely on fixed take-profit and stop-loss levels or indicator reversal signals. Position sizing employs a volume-based approach, where version 2 adds volume confirmation logic — trades are only opened when volume increases, filtering out false signals. Money management uses fixed lot sizes or calculates lots based on account balance proportion, with no martingale or grid components detected. The overall strategy is a momentum reversal type, seeking reversal opportunities at extreme momentum zones and using volume confirmation to improve signal reliability.
Strengths
- Dual filtering with DeMarker indicator and volume confirmation reduces false signals
- Seeking reversals at extreme momentum zones offers high reward-to-risk ratio potential
- Clear strategy logic with adjustable parameters facilitates optimization and market adaptation
Weaknesses
- DeMarker tends to generate consecutive false signals during trending markets, leading to frequent stop-loss hits
- Volume confirmation logic may fail during low-liquidity sessions, producing incorrect judgments
- Lack of overall trend direction filter may cause frequent counter-trend trading
Possible improvements
- Add a higher timeframe trend filter (e.g., moving average direction) to avoid counter-trend trades
- Implement dynamic stop-loss and trailing take-profit adjusted by market volatility (ATR-based)
Risk assessment
Overall risk: Medium
- Lacks multi-timeframe trend confirmation, may repeatedly open counter-trend positions during strong trends
- Volume confirmation may be unreliable on non-standard instruments or during low-liquidity sessions
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
DeMarkerPeriod | 14 | DeMarker indicator calculation period |
OverboughtLevel | 0.7 | Overbought threshold; place sell order above this |
OversoldLevel | 0.3 | Oversold threshold; place buy order below this |
VolumeMultiplier | 1.5 | Volume multiplier confirmation threshold |
LotSize | 0.1 | Lot size per order |
StopLoss | 500 | Stop loss in points |
TakeProfit | 1000 | Take profit in points |
Similar Momentum EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.