Zigzag Retracements and Moving Average Filters in a Forex EA

Summary

This document describes an automated strategy that combines two moving averages with trend lines drawn from zigzag points. The trend line is intended to filter trades, while the EA uses open-candle prices and offers take-profit, stop-loss, trailing-stop, break-even, and equity-risk controls. Parameters also allow multiple trades and changes to position size after losses, making position sizing and drawdown settings central to how the system behaves.

The stated testing limitations are significant: trend lines do not affect trades in test mode, so optimization there evaluates only the moving averages. The author recommends backtesting with open prices only and says the combined filter operates in live trading. The document gives no performance results or evidence that the trend-line filter improves outcomes; its claim about higher win probability is unsubstantiated. It presents configuration details, not a validated strategy assessment.

Key ideas

• The EA combines two moving averages with zigzag-derived trend lines that serve as a trade filter.
• It includes fixed and monetary profit or loss controls, trailing stops, break-even settings, and equity-based drawdown controls.
• A loss-based lot increase option can change exposure after losing trades.
• Backtests do not incorporate the trend-line filter into trade creation, limiting what optimization can establish.
• The document provides no performance evidence for the claimed benefit of the filter.

Tags

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