The developers of this expert advisor claim that it is able to increase the trader’s initial deposit several times over a year. This result is achieved by opening the grid of orders as the price moves in the right direction. Losses in this EA are eliminated by averaging.
The EA is multicurrency, it can be applied on different timeframes depending on the settings. Being originally developed for trading on the h4 time interval, thanks to its ease configuration, it can be optimized to trade on smaller timeframes. Only the relevant MA periods are needed to be determined.
The strategy is based on the assumption that most of the time the price moves within the range. The lower and upper boundaries of the range are the moving averages, which are shifted along the vertical axis. Basis for opening a position is touching by the price of the upper (sell) or lower (buy) boundary of the range. Thus, a Pyramid EA is always in the market.
The strategy does not use SL and TP levels. Averaging helps avoid losses, and a series of profitable orders is automatically closed when the price reaches the boundary of the range. At the same time, the advisor makes a deal in the opposite direction.
How to install and configure the Pyramid EA
The EA needs MA Channels Fibo indicator for operation. Depending on the version of the trading robot, the indicator can be integrated in the EA, otherwise you will need to copy it manually to the Indicators folder. The file of the expert advisor should be copied to the Experts folder.
Since the original version of the EA has ceased to trade profitably 2 years ago, a number of modifications of the advisor were developed for trading on smaller timeframes (m15 – m30). But the principle of the robot has not changed.
Pyramid EA considers two scenarios:
if the price moves in the right direction, it quickly builds profits. To do so, it adds another working lot to the open position every 25 pips;
if the price moves in the opposite direction, the EA opens another position in the same direction as that of the first deal every 50 pips. A more aggressive option of trading using the Martingale principle is also possible. In this case, the volume of each subsequent deal doubles.
To allow the advisor to trade, you need to choose the option of EA operation in the BuyorSell field of the settings window. Available options are: only sell (code 1), only buy (code 0), or buy and sell (code 2). You can also change the interval at which the EA places grid of orders in the settings window.
Pyramid EA: testing results
The advisor has an important feature: the algorithm to enter the deals is simple and clear, and the need of automation has arisen because of the complexity of placing the large number of orders manually. Back in 2011, the EA has shown outstanding results, but unfortunately, in early 2012, it was already exhausted and the default settings stopped making a profit.
Nevertheless, the existing modifications of the advisor allow to trade profitably today as well. Since the beginning of May 2014, the EA allowed to earn $657 with the standard settings. It proves the viability of the idea used in the algorithm of this EA.
The main disadvantage of the EA is the increased risk due to averaging (or Martingale with more aggressive trading). In the case of a strong trend in the market, there is a real chance to siphon the deposit, as SL is not used in trading.
This is why the Pyramid EA requires significant initial deposit for more or less safe trading. Thus, for trading on cent accounts, it is recommended to have at least $100, on a regular – at least $1,000. To protect already received profits, it is recommended to withdraw money earned from time to time.Social button for Joomla