Boomerang trading strategy, on which a trading robot was later based, provides using only one indicator – the moving average with a period of 18 (built on the closing prices). Martingale principle is also used in trading.
The authors claim that the Boomerang EA provides monthly deposit growth by 20-30%. Annual profit is supposed to be about 300%, and can be increased up to 350% if you allow an advisor to increase the working lot along with deposit growth. The developers recommend sticking to GBP/USD, GBP/JPY, EUR/USD currency pairs (timeframes 1H and 4H). Trading with other pairs, in their words, is also profitable, but the results are not stable.
The basic idea of trading with this EA is working under any conditions, whether it is a pronounced trend or a prolonged flat. The Boomerang EA also fixes profits in increments, using a trailing stop for the remainder of the open position. During the rise of a new trend, this allows to take the most of it.
How the Boomerang EA works
Moving average acts as a filter, while the situation of the price chart in respect to the MA affects the position opening. Besides, the median price of the previous candle is taken into account. The price often fails to reach the TP set in the program settings by default, but thanks to a trailing stop it allows to fix profits even in this case.
To open a deal to buy, you need to satisfy the following conditions: the price should be above the MA of the middle of the previous candle (the EA does not display auxiliary build-ups). A long position also opens when the previous deal to sell is closed at SL. In this case, the price breaks the MA upwards, which is a signal to change the trend. The conditions for opening deals for short positions are the opposite.
The Martingale principle imposes certain restrictions on the trader – you must strictly adhere to the MM. When trading using this Forex robot, the capital management is reduced to a partial increase of the working lot. First time the Boomerang EA increases the working lot after doubling the original capital, then the lot is increased each time when the size of the deposit is increased by the amount of the original deposit.
Thus, with the initial deposit of $5000, the lot will double only after the deposit grows to $10,000. After reaching a mark of $15,000, the deal volume will grow by one original lot more. The value of the lot can be optionally changed, as the EA settings allow doing so.
Boomerang EA – test results
Testing of the EA was conducted on the EUR/USD currency pair (timeframe h1). In this case, the settings of the EA remained unchanged. Judging by the results, the EA fully justifies its name, as a successful trading for 1-2 months is replaced by sure losses in the coming months.
Assurances of the developers on a stable income in the amount of 20-30% per month have not been confirmed. Since the beginning of 2014, the EA managed to increase the deposit by 22%. The figure is pretty decent, but the most important thing is missing – stability. There is no certainty that within the next six months the Boomerang EA wouldn’t return to its original position.
In its latest versions, the EA became able to open a network of pending orders, which are combined into a single block (the maximum number of such orders is set). Besides, it became able to conduct manual trading on the same currency pair at the same time. In this case, the EA will not take into account the orders opened manually.
The popularity of the EA can be explained by its simplicity, clear algorithm of making deals, and the ability to work both of the trend parts of the market and during a flat market. These advantages justify wasting time on testing and optimization of the advisor.Social button for Joomla