A Fibonacci Channel Filter with Moving Average Trading
Summary
This expert-advisor description presents a trend-following system that combines two moving averages with Fibonacci channel lines. The channel is intended to act as a trade filter, while the system also offers take-profit and stop-loss settings, trailing stops, break-even controls, equity-risk limits, and a configurable maximum number of trades. It can optionally increase position size after losses, a setting the description says can be disabled.
The source cautions that the Fibonacci channel does not inform trades during backtests: optimization tests use the moving averages alone, and the channel functions alongside them only in live trading. It therefore provides no valid combined-system backtest evidence for the channel filter or its claimed effect on win probability. The description gives configurable ranges but no tested settings, market-specific results, or independent performance analysis; users should not infer effectiveness from the stated features.
Key ideas
- The system combines two moving averages with Fibonacci channel lines as a trade filter.
- Risk controls include stops, trailing exits, break-even settings, and equity limits.
- Position size can increase after losses, with an option to disable that behavior.
- Backtests and optimization do not use the Fibonacci channel to create trades.
- The source supplies no performance evidence for the combined live-trading rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.