Cutting Through The Noise To Find The Most Profitable Trading Strategies. Forget the Hype - Read It Here First

Tuesday, October 18, 2011

UniversalMACrossEA Review

This week's review is for a free strategy, UniversalMACrossEA. The strategy offers a range of moving average types which can be configured against different price points. The default setting uses a 10-period EMA based on the close price crossing an 80-period EMA.

Cross and Exit conditions can also be configured to use (or not use) a trail. A third moving average can also be applied to use as a filter for the primary cross of the two lead moving averages. The default option does not employ the third moving average.

The strategy offers a Time filter (default switched off), Money Management and crossover Alert.

Expert Properties Setup

Starting account is $10,000 with 0.1 Lots on a 15-minute timeframe. For the purpose of this test the recommended StopLoss and TakeProfit settings are employed.

No Optimization was used.

Comparative Test Period

These were three 12-month periods selected randomly for the period January 1st 2000 to January 1st 2010. The three test periods common across all tests were:

March 31 2000 - 2001
June 29th 2003 - 2004
May 17th 2001 - 2002

Comparative Results

The strategy did not excite, but a successful moving average strategy needs more than just default settings. Although the strategy outperformed against Forex Breakout System, it underperformed against leader, Forex MegaDroid.

The Cash-Equity curves highlight the gradual decay in the returns over time.

Random Test Period

Although expectations are low, another set of 12-month periods were selected. These were:

November 1st 2006 - 2007
January 1st 2009 - 2010
November 25th 2007 - 2008

Random Results

Although the Strategy performed better, it still didn't approach the heights of other more profitable strategies.

The Cash-Equity curves were:


UniversalMACross is a free strategy which makes no claims but provides a large set of customisable options to help you tailor your strategy. While the default settings did not produce a meaningful result it still managed to out perform some of the commercial strategies out there. If you are a new to MetaTrader it's certainly a strategy which can be tinkered with ease.

Our Current Strategy Leader is: