Testing Day-of-Week Continuation and Reversal Effects

Summary

This Expert Advisor provides a framework for testing whether the previous trading day’s direction predicts continuation or reversal on a selected weekday. Users can choose weekdays and compare entries that follow or oppose the prior day’s move. Positions may close at a set hour to isolate the calendar pattern, or use ATR-based filters and stop-loss and take-profit rules for managed trades.

The framework uses daily candles, checks entries when a new daily bar starts, and permits one open position per symbol. Its risk-based sizing uses the balance captured when the EA starts; without a stop loss, it falls back to the minimum lot size. The document says the EA was tested on EURUSD, gold, and the S&P 500 over 2016–2026, but supplies no interpretable performance figures in the excerpt. It is presented as a research tool, and its results require further validation before real-money use.

Key ideas

• The strategy tests continuation and reversal after the previous trading day across selected weekdays.
• An ATR filter can require a minimum daily range, while ATR-based stops and a risk/reward setting can manage positions.
• Positions can be force-closed at a specified hour to focus on weekday effects.
• Risk-based position sizing uses the EA’s starting balance and requires an enabled stop loss.

Tags

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