Montag Expert Advisor - Profit on Mondays

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It’s no secret that Friday and Monday are special days in Forex. The beginning and end of the trading week are fraught with many tricks and patterns associated with them. One of such interesting Monday patterns is used by the Montag EA. Moreover, the pattern has an extremely high winrate.

In the review of the Montag EA, we will, as usual, take a look at backtesting tests, real-time performance monitoring, and deal with settings and money management.

Characteristics of the EA Montag

Platform: Metatrader 4
Currency pairs: EURUSD, GBPUSD, USDCHF, USDJPY, USDCAD
Timeframe: M1
Working hours: once a week

Recommended brokers: Roboforex, Alpari

Installing an Expert Advisor in MT4

Detailed installation instructions are described in the article on the website.

Attention! Make sure that the terminal settings allow you to save 11520 history bars, which are required by the advisor to trade on M1!

To do this, go to Tools-> Options-> Charts.

Also take a look at the presets of the settings; if you do not know what it is - you should come here.

And for separate parameters: GMT offset and money management.

The strategy at the heart of the advisor

The EA implements three entry strategies:

  • we open at a given time on Monday against the direction of the candlestick of last Friday;
  • we open at a given time on Monday against the direction of the candlestick of the previous week;
  • if at a given time on Monday the price turns out to be outside the candlestick body of last Friday, enter in the direction of the candlestick body.

Agree, all three sound very similar.

Testing has shown that the third type of entry is the most effective (however, you can conduct your own research), and we apply it in all sets (sets of settings) to the EA.

Stop-loss is set for the High or Low level (depending on the position) of the signal candle with a given indentation not less than a specified value and not more than a specified value. Take profit is fixed.

What does it look like? Let’s take a look at the third type of entry with an example:

Simple? Yes.

Is it effective? Quite - see monitoring below.

Could this be called gap trading? Yes, in fact it is a variation of it.

The stop is several times higher than the take profit. It sounds scary, but due to the high win rate (over 90% of profitable trades), we have a profitable system. I recently made a separate post about the take-to-stop ratio.

History tests

Backtesting by no means replaces real-time tests, nevertheless, it allows you to roughly estimate the potential of a strategy.

The tests below are made on the basis of the sets that you will find in the archive with the advisor at the end of the review.

Let me remind you that we are doing tests with a fixed lot of 0.1 for a more adequate understanding of the EA’s behavior and the size of the drawdown, as well as regular tests with activated money management for those who love them (although personally I do not understand what is the point of them).

The tests below were done in the Tick Data Suite program with a simulation quality of 99%.

EURUSD fixed lot 0.1, 2012-2021

Win rate 100% 🙂 EURUSD is the most stable.

EURUSD with MM, lot 0.01 for every $ 500, 2012-2021

GBPUSD fixed lot 0.1, 2010-2021, Recovery mode

The winrate is slightly worse, 93%, but with the Recovery mode (more about it below) it also goes well.

GBPUSD with MM, lot 0.01 per 1000 $, 2010-2021

USDJPY fixed lot 0.1, 2010 - 2021

For the yen, the win rate is already noticeably lower - 84%, but still very good.

USDJPY with MM, lot 0.01 for every 1000 $, 2010-2021

USDCHF fixed lot 0.1, 2010 - 2021

USDCHF surprisingly, like EURUSD, gives out 100% winrate in tests. Perhaps it is a strong correlation with the Eurodollar.

USDCHF with MM, lot 0.01 for every $ 500, 2010-2021

USDCAD fixed lot 0.1, 2010 - 2021

USDCAD with MM, lot 0.01 per 1000 $, 2010-2021

USDCAD is not perfect, but it also has a high win rate.

Trade monitoring

Above is the monitoring widget for this Expert Advisor, if you click on it, you will be taken to a page with a detailed trading history.

For almost 1.5 years, the EA showed a total win rate for all pairs of 94% (at the time of this writing), and 100% for EURUSD, which proves to us the veracity of the historical tests.

What is important - we saw losses and the fact that the yield curve is coming out of them. This is extremely important in an Expert Advisor with such a “harsh” ratio of reward to risk. That is, we make sure that the really high winrate outweighs the large stop size.

Description of the Montag EA settings

First of all, load the preset for the pair to which you are installing the advisor, and only then adjust the settings, if necessary.

In addition to the preset, pay attention to the Start Lot, One Start lot per amount parameters (for more details in the Money management block) and GMT offset (see How to set GMT Offset), the rest, if you don’t understand, better leave it alone.

  • Magic - Magic Number, advisor’s order identifier, do not touch;
  • Comment - a comment for the advisor’s orders, it can be any;
  • Max Spread - the maximum spread at which entry is possible;
  • Signal mode - selection of the entry mode, see above in the block describing the advisor’s strategy;
  • Maximum orders in grid (0 - no limit) - how many orders to open. More than 1 - the grid will be built. 0 - no limit, grid to stop;
  • Start lot - starting lot;
  • Multiply by amount - lot selection mode: constant, by balance, equity, free margin;
  • One start lot per amount - a portion of the balance, funds or free margin for which the starting lot is allocated. If it is 0, then a fixed lot from the Start Lot field is used, regardless of the deposit;
  • Maximum lot (0 - use broker limit) - limit the maximum lot;
  • Increment factor - the lot multiplier in the grid (if the grid is being built);
  • Minimum distance between first and second order, pips - grid step;
  • Take profit, pips - take profit (in four-digit pips);
  • Min stop loss, pips - minimum stop loss (in four-digit pips);
  • Max stop loss, pips - maximum stop loss (in four-digit pips);
  • Stop loss offset from low / high, pips - offset from the high / low of the signal candle when placing a stop (in four-digit pips);
  • Dodji filter, pips - minimum size of the signal candlestick body (in four-digit pips). If the candlestick is smaller, the EA will not open a trade;
  • Close before Tuesday - close 5 minutes before Monday close (before the swap), as recommended in the description of the original strategy;
  • Close grid before Tuesday - close grid before Monday close. If the previous option is enabled, and this one is disabled, then the trade will be closed only if there is only one;
  • Entry time, hour - what time to enter, hour;
  • Entry time, minute - what time to enter, minute;
  • Recovery Factor - if it is greater than 1, for example, 2, then the Recovery mode is activated, more about it in the Money management block;
  • Auto Detect GMT - automatic determination of GMT Offset, it does not always work, it is better to set it manually;
  • Broker GMT Offset - broker’s GMT offset in winter time;
  • DST Mode of your Broker - the mode of the broker’s transition to daylight saving time, if you are not sure, it is better not to touch it.

Money management

The EA uses a money-management method that is not common for auto-trading, namely, a fixed fraction.

For example:

We set a starting lot of 0.01 for every $ 1000 of the deposit. As soon as the deposit increases to $ 2,000, the EA will start trading with 0.02 lot. Starting from 3000 - lot 0.03, and so on.

Based on observations of the EA and backtesting tests, I recommend using a lot of 0.01 for every $ 100 of your deposit.

Recovery Mode

All presets, except EURUSD, use Recovery Mode. What it is? If the advisor gets a loss, then it opens the next positions for this pair with a double lot until it recovers the losses. Since our win rate is very high, this tactic is permissible.

If you want to disable Recovery Mode, set Recovery Factor 1.0 in the EA settings.

Conclusion

The Montag EA proves in practice that a win rate of 100% of profitable trades is achievable (see our monitoring for the EURUSD pair). A mini grail trading once a week is a great addition to your portfolio of strategies in my opinion. Be careful with the settings and do not overestimate the risks, then the Montag robot will brighten up the “difficult” Monday a little with a profit.

Important !

For the EA to work correctly, the trading terminal must be turned on from the opening of the market on Sunday evening until it closes on Friday evening. If you don‘t have a possibility to keep your computer working 24/5, we recommend you to use the VPS Server services.

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Download Expert Advisor Montag

 

Take care, Michael

Forextraderportal.com

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