Fibonacci Breakout EA with Moving-Average Filters and Risk Controls
Summary
This document outlines a Forex and stock trading Expert Advisor that combines Fibonacci levels with two moving averages. It describes trading around price breakouts, with Fibonacci levels serving as a filter alongside the moving averages. The EA is said to act on the current candle's opening price and includes configurable trade limits, trailing stops, break-even adjustments, money-based and percentage take-profit options, equity drawdown controls, and an optional increase in lot size after a loss.
The account is configured through numerous inputs, including moving-average periods and fractal highs and lows. The document says Fibonacci-based trade decisions are not represented in ordinary backtests: tests can optimize the moving averages, while Fibonacci levels are only drawn during visual tests and work together with the averages in live trading. It recommends open-price-only backtesting, but provides no performance results. This limitation makes the claimed filter effect difficult to validate and raises concerns about evaluating the live logic; increasing position size after losses can also compound risk.
Key ideas
- The EA combines Fibonacci levels with fast and slow moving averages to filter breakout trades.
- It offers trailing stops, break-even movement, equity controls, and configurable trade limits.
- An optional setting increases lot size after losses, which can increase drawdown exposure.
- Fibonacci logic is excluded from standard trade backtests and is described as active only in live trading.
- The document provides parameter settings but no evidence of profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.