After realizing that my dream of quickly creating a working moving average cross robot and retiring to a beach soon after was not going to work, I decided to work my way through each technical indicator available in MetaTrader 4, trying to find the one which would accurately predict the Forex market under all conditions and make me rich.
This was one of the first of this series, and uses the excellent ADX indicator for it's trade signals. I say excellent because I've had a lot of luck with this indicator when coding robots. Luck meaning robots which sucked less than other robots or even turned a small profit for a little while before eventually bombing out and being archived.
There's some references to RSI and stochastic indicators in the code, but they are not used for anything. This robot basically just opens a market order right away if ADX+ is above ADX-, and closes it when this is no longer true. The reverse for a sell condition.
I believe I tried this on the 15min or 1hr charts, and it didn't perform very well.
As mentioned previously, I didn't have a very rigorous testing methodology, nor did I keep detailed results, so I'm relying on my memory for most of these reviews. The idea was that I didn't really need to keep results, because if a robot started to fail, it was no good anyway, so better just move onto the next idea instead of wasting time recording data about something that didn't work.
However, I have run a back-test with my patented MetaTrader "EDHD" (Extremely Dodgy History Data) on the daily time frame (many robots sometimes show a small profit on the daily time frame when they fail on others. This could be just because they don't open enough orders to get to the point where they fail, or it could mean the daily time frame is awesome). Stop-loss 50, take-profit 500, trailing-stop 50.
And look at that! A $229 profit over the course of a year (1-1-2011 to 1-1-2012). 15.49% win rate! The equity curve doesn't look too healthy though, suggesting that this robot made it's profit mostly by luck.
Still, not a completely terrible result for one of my earliest robots.
