Automating Folding Rule Breakouts with Multi-Timeframe Analysis

Summary

In this interview, an Automated Trading Championship participant describes a Forex Expert Advisor based on breakouts of levels from the Folding Rule, a simplified wave-analysis method. The robot combines those levels with an ABC formation and money management. It analyzes timeframes from M5 through H1, using the lower timeframe to open positions. The trader says the method treats a rule breakout as a possible wave-cycle ending and describes it as a way to turn discretionary wave ideas into a simpler automated rule set.

The interview reports that the EA traded EURUSD and that a verification run showed $72,000 profit with a maximum drawdown of 20.54%, alongside 100 short and 113 long trades. These are participant-reported results from a competition-era test, not independently assessed evidence of durable performance. The trader also notes that the chosen maximum lot setting was an error, describes a trailing stop set manually according to market conditions, and says more volatile instruments may produce fewer false signals.

Key ideas

• The EA enters on Folding Rule level breakouts, with an ABC formation as an additional component.
• The interview characterizes the Folding Rule as a simplified way to represent wave-cycle endings.
• The robot analyzes timeframes from M5 through H1 and uses M5 for entries.
• The participant reports a competition verification result, but the interview does not establish independent or long-term validation.
• Position sizing and trailing stop settings depended on user choices and market conditions.

Tags

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