EA-39688 · Momentum

OsMA Four Colors Arrow EA

This EA trades based on the OsMA (Oscillator of Moving Averages) indicator using a four-color arrow system to visualize bullish and bearish momentum shifts. It generates buy signals when OsMA turns positive from negative and sell signals when OsMA turns negative from positive, with color coding for momentum strength. The EA automates entries and exits based on these momentum crossover signals.

Open the interactive view (equity curve, symbol switch)

Key facts

CategoryMomentum
RiskMedium
Blow-up riskLow
Rating★★★☆☆
TypeTrading EA
TimeframesM15, H1, H4
IndicatorsOsMA, EMA, SMA
AuthorVladimir Karputov

Backtest results (H1, about 1 year)

SymbolP&LAnnualMax DDTradesWin rateSharpeRecoveryLosing streakPer tradeStatus
EURUSD+1.39%+1.21%3.98%13047.30%————Same as other EAs
GBPUSD+3.37%+2.92%3.45%12949.20%————Same as other EAs
USDJPY-7.43%-6.49%8.50%12650.00%————Same as other EAs
XAUUSD-39.73%-34.19%75.80%13648.90%————Same as other EAs

On every market this backtest is identical to EA-39234. The automatic conversion almost certainly lost what makes this EA different (a custom indicator, a filter or the money management), so these results are not ranked or counted.

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 this EA is based on momentum shift signals from the OsMA indicator. OsMA represents the difference between the MACD histogram and its signal line, reflecting the direction and strength of price momentum. Entry conditions are: a buy position is opened when OsMA crosses from negative to positive territory, signaling bullish momentum acceleration; a sell position is opened when OsMA crosses from positive to negative territory, signaling bearish momentum acceleration. The four-color arrow system differentiates momentum strength through color coding — for example, darker colors indicate stronger momentum while lighter colors indicate weaker momentum, helping traders visually assess signal quality. Exit conditions typically involve closing positions when a reverse signal appears, or through configurable stop-loss and take-profit parameters. Position sizing allows users to set fixed lot sizes or dynamic calculation based on account equity. Money management relies on proper stop-loss and take-profit configuration, but the overall strategy lacks adaptive volatility-based position adjustment mechanisms.

Strengths

  • Based on the well-established OsMA momentum indicator with clear and understandable signal logic, suitable for trending markets
  • The four-color arrow system provides intuitive momentum strength visualization for better signal quality assessment
  • Flexible parameterized design allows adjustment of EMA periods and stop-loss/take-profit to adapt to different market conditions

Weaknesses

  • Single-indicator strategy lacks filtering mechanisms, prone to false signals in ranging/choppy markets
  • No spread filter or trading session filter included, may enter positions under unfavorable conditions
  • Lacks dynamic position sizing; fixed lot mode cannot adapt to changing market volatility

Possible improvements

  • Add a trend filter indicator (such as ADX or higher timeframe moving average) to reduce false signals in ranging markets
  • Implement dynamic position sizing module that automatically adjusts lot size based on ATR or account risk percentage

Risk assessment

Overall risk: Medium

  • Single OsMA indicator prone to consecutive false signals in ranging markets leading to multiple stop-loss hits
  • No spread filter mechanism may trigger trades under high spread conditions unreasonably
  • Lack of new bar check may cause repeated position opening on the same bar

Evaluation scores

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

Parameters

ParameterDefaultDescription
InpLotSize0.1Fixed lot size per trade
InpStopLoss500Stop loss in points
InpTakeProfit1000Take profit in points
InpFastEMA12OsMAfastEMA period
InpSlowEMA26OsMAslowEMA period
InpSignalSMA9OsMAsignal lineSMA period
InpMagicNumber123456EA magic number for identifying orders
InpTimeframeH1OsMAindicator calculation timeframe

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

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