A Trend-Following Forex EA with Scaling and Risk-Based Position Sizing

Summary

In this 2011 interview, Sergey Nikitin describes the Expert Advisor that was leading the Automated Trading Championship during its second week. It traded EURUSD and EURJPY, used daily charts to determine trend, and relied on trend-watching indicators. Nikitin says the system adds to profitable positions, locks losing positions, and exits through either a stop or an indicator reversal on shorter timeframes.

The initial position size was tied to a chosen risk level and stop loss; the EA could increase exposure after assessing equity and a positive forecast. The stop was optimized and held constant for the two pairs, and the developer said tests on those pairs favored them over adding a third. These are the trader’s descriptions, not independently validated results: the interview gives no full backtest, drawdown analysis, or later contest outcome. It also notes that contest settings required a higher risk rate than intended for real trading.

Key ideas

• The EA used daily timeframes to identify trends in two euro currency pairs.
• It added to profitable positions and managed losing positions with a locking approach.
• Initial position size reflected a selected risk level and stop loss, with later increases tied to equity and forecast.
• The developer described exits through stop levels or shorter-timeframe indicator reversals.
• The account is an interview, not an independent evaluation of performance or risk.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.