In the “Verification by backtesting" series, we verify the performance of free EAs registered in the MQL5 community from the backtesting results. We hope it will help you choose EA.
* Membership registration (free) is required to download EAs and indicators from the MQL5 community, so let’s create an account by referring to this article!
The 25 th is “Dark Mimas MT5“.
This EA is also a martingale type EA.
In that case, there is only one thing to do. It remains only to find conditions that are unlikely to break down.
About Dark Mimas MT5
Quoting from MQL5 official page
Dark Mimas is a fully automatic Expert Advisor for Scalping Trading. This Expert Advisor needs attention, in fact presents highly customizable.
Dark Mimas is based on Dark Oscillator MT5 indicator, these Trades can be manage with some strategies.
The basic strategy starts with Market order in Counter Trend, but you can change it, in others strategies trend following.
- The Recommended Timeframe depends on your settings, but you can use M5, M15, H1 and all others timeframes with the appropriate settings.
- The Expert can go on EURUSD, GBPUSD, AUDCAD and AUDCHF, but also in others with the appropriate settings.
- An Ecn broker is always recommended
- A low latency vps is always recommended.
- The recommended Leverage and deposit depends on settings.
- Understand how the EA works by reading the ► offline user manual and some example settings
Dark Mimas Settings
- Magic Number: ID number of the orders.
- Max Spread: maximum spread to trade.
Money Management Settings
- Lots: number of lots if the money management option is disabled.
- Money Management: if true enables the money management option.
- Risk Percent: if the money management option is enabled, it indicates the risk percentage.
- Dark Oscillator Strategies: The strategies describe themselves, very intuitive, otherwise refer to the user manual
- Dark Oscillator Period: Periods of Dark Oscillator Indicator
- Dark Oscillator Method: Method for Dark Oscillator Indicator
- Dark Oscillator Applied Price: Price for Dark Oscillator Indicator
- Dark Oscillator Up Level: Up Level for Dark Oscillator
- Dark Oscillator Down Level: Down Level for Dark Oscillator
- Dark Oscillator Additional Rules: Additional Rules for Dark Oscillator
- Dark Oscillator Timeframe: Timeframe of Dark Oscillator Indicator
- Enable Time Filter: if true enables the time filter
- Trading Start Hour: operating start Hour
- Trading Start Minute: operating start minutes
- Trading Stop Hours: operating end Hour
- Trading Stop Minute: operating end minutes
- Close Out of hours: close all orders at the end of the timetable.
- Allow Buy: if true, Ea can trade with buy orders.
- Allow Sell: if true, Ea can trade with sell orders.
- Allow Buy and Sell at the same time: Allow buy and sell orders at the same time
- Allow Order From Others Charts, At Same Time: if true, allow orders from others charts (If the EA then is positioned on other pairs, for example)
Trading of “Dark Mimas MT 5″
Dark Minas MT5 is based on the Dark Oscillator MT5 indicator and trades on several strategies. Basically, we enter based on the counter-trading strategy, and in case of reversal, we increase the lot in the martingale method.
* Dark Minas MT5 has a Dark Oscillator MT5 indicator built into the EA, so the EA itself will operate without any problems even if you do not prepare it separately.
Screening currency pairs with recommended conditions
On the official page, the recommended currency pairs of this EA are EURUSD, GBPUSD, AUDCAD and AUDCHF, and the timeframes are M5, M15, H1. So we first backtested them.
As usual, we tried screening using the “function to backtest and compare all symbols displayed in the Market Watch window at once". The test conditions are NOZAX zero account (ECN), initial balance 10,000 USD, period 1 January 2008-31 December 2022, EA parameters are default settings.
- Compare Stocks: 4 Currency Pairs – EURUSD#, GBPUSD#, AUDCAD#, AUDCHF#
- Based on the test results, only the AUDCAD M15 remained as a candidate. It was surprising that it was wiped out in H1, but does it mean that in Martingale we do not know what will exist?
Next, we usually show the backtest results of AUDCAD M15 alone, but this time we will first show the screening results of currency pairs other than the recommended conditions. (It doesn’t make any sense…) ）
Screening of currency pairs other than recommended conditions
A similar test was conducted with the addition of 18 currency pairs to explore which currency pairs can be used outside of the recommended currency pairs. The test conditions are the same, NOZAX zero account (ECN), initial balance of 10,000 dollars, period 1 January 2008-31 December 2022, parameters are default settings.
- Compare Stocks: 22 Currency Pairs – AUDCAD#, AUDCHF#, AUDJPY#, AUDNZD#, AUDUSD#, CADJPY#, CADCHF#, CHFJPY#, EURAUD#, EURCHF#, EURGBP#, EURJPY#, EURUSD#, GBPAUD#, GBPCAD#, GBPCHF#, GBPJPY#, GBPUSD#, NZDUSD #, USDCAD#, USDCHF#, USDJPY#
- As a result of the screening, AUDCAD M15 and USDCAD M15, USDCAD, GBPCAD, AND CADCHF H1 were left as candidates.
Backtesting of selected currency pairs
In order to gauge the size of the margin drawdown (Equity Drawdowon) that may be encountered when operating on these currency pairs, individual backtests were conducted on selected currency pairs. This will tell you whether to stop out or not depending on the time of the start of the trade.
- Account: NZX Zero (ECN) (NOZAX)
- Initial Balance: $10,000
- Parameters: Default Setting
- Period: 1 January 2008-31 December 2022
From the above results, even if the initial balance starts at $10,000, except for USDCAD H1 and GBPCAD H1, you will encounter a stop out due to unrealized loss depending on the start of trading.
The profitability of the M15 is attractive, but it is dangerous without a significant amount of funds. Rather, why not screen currency pairs with small drawdowns around H1 and optimize the parameters?
Selection (optimization) criteria of Martingale EA
Not limited to Martingale EA, when operating Forex, the first thing is that the drawdown is small and you do not hit the stop out. Even if you are okay for 10 years, tomorrow you may encounter a big drawdown, which is the scary thing about Martingale EA.
To avoid this, you should always operate with funds that you can afford.
Please check the behavior carefully in the backtest and decide the operating conditions and funds. In particular, we recommend that you pay attention to unrealized losses (profit and loss graph: lower beard), and even if you are unfortunate enough to encounter a drawdown immediately after the start of operation, you can manage with enough funds to get through with a margin.
Once again, I would like to describe the criteria for selecting (optimizing) Martingale EA. However, there is also a preference as to whether to actually use the EA, so that’s another story.
- Small downdown (unrealized loss) (no stop-out for a long period of time)
- Sufficient number of trades
- The size of the drawdown is balanced with the revenue