GerFX Density Scalper: Optimized Mean Reversion System

GerFX Density Scalper is a mean reversion system designed for trading during the quiet hours of the day. Similar to QuantFlow Scalper, it is optimized to reduce slippage. For instance, the entry logic has been streamlined for faster calculation, and exits are managed through take profit orders, potentially leading to positive slippage.

Key Features:

• No Martingale or Grid: Each position has a stop loss.
• Symbol Coverage: EURUSD, GBPUSD, EURCHF, USDCHF, USDCAD, EURCAD, EURAUD, AUDUSD, AUDNZD, AUDCAD, CHFJPY, (experimental: USDJPY, EURJPY, EURGBP, EURNZD, GBPAUD, NZDUSD, NZDCAD)
• Time Frame: M5
• Max Drawdown: $35-50 per 0.01 lot over a 16-year backtest (varies by pair count)
• Live Monitoring: Uses breaking news filter

Setup Instructions:

Read the blog post for detailed setup instructions and to download backtests. Use this direct link for convenience.

GMT Settings:

– If auto GMT settings are used, the EA will detect the GMT offset. Verify manually on first use.

– Run the EA continuously on a VPS, including Friday evenings, to store historical data.

Web Requests:

Allow requests to:

– http://fxdata.cc

– http://backup.fxdata.cc

– http://breaking.fxdata.cc (for breaking news filter)

Backtesting:

Perform backtests with Tick Data Suite GMT+2 with US DST. Use real spreads, as they vary between brokers.

Important Events:

Turn off the EA during major events, such as general elections in the UK, US, or Europe.

Parameters:

General Trade Settings:

• dailyEquityStopPercentage: Refer to point 6 in the blog post.
• orderComment: Each trade will display this comment in the history tab.
• magicNumber: The EA will only manage positions of the chart symbol with this magic number.
• lotType: “fixed” or “increasing.”
• fixLots: Fixed lot size if lotType = fixed.
• lotStep: Increment for lot size per equityPerStep (if lotType = increasing).
• equityHardStop: Closes positions if equity falls below this level.
• pipInPoints: 10 for 5-digit brokers, 1 for 4-digit brokers.
• maxSpreadPips: Maximum spread allowed for entry; auto settings apply if <0.

Time Settings:

• startHourGMT: Start trading time (GMT).
• endHourGMT: Stop trading time (GMT).
• waitMinutesBetweenSameSideEntry: Time gap between same side entries.
• autoGMT: Automatically determine GMT offset.
• manualGMToffsetWinter: Manual GMT offset in winter.
• manualGMToffsetSummer: Manual GMT offset in summer.

For additional parameters, see the blog post and “What’s new” tab.

Risks:

1. Past Performance: No guarantee of future profitability; EA can incur losses.
2. Backtest Optimization: Results from optimized backtests may not apply to live trading.
3. Market Movements: Mean reversion strategies can be adversely affected by unexpected news or flash crashes.
4. Broker Conditions: Night scalpers need favorable conditions like low spread and slippage, which may worsen with high lot sizes.

Conclusion:

GerFX Density Scalper is a powerful mean reversion tool optimized for low-slippage trading. With careful setup and consideration of risks, it can be a valuable asset in a trader’s arsenal.