MQL5 Free EA – Verification by backtesting 17 “Dark Moon MT5”

MQL5 Free EA

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 17th installment is “Dark Moon MT5“.

About Dark Moon MT5

Quote from MQL5 official page

All the settings are external, so that everyone can set the robot as they wish. 

The basic strategy starts with Market order in trend following, but you can change it, in others strategies counter trend. 

Recommendations

  • 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, NZDUSD and USDCHF, 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

Parameters

Dark Moon 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.

Indicators Settings

  • Enable Dark Absolute Trend: if true, enable the indicator
  • Dark Absolute Trend Strategies: Select the strategy to follow
  • Moment of the Signal: Decide whether the signal will be executed on the current bar or on the close of the previous bar
  • Dark Absolute Trend Period: Periods of Dark Absolute Trend Indicator
  • Dark Absolute Trend Timeframe: Timeframe of Dark Absolute Trend Indicator

Trading Hour

  • 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.

Trading Directions

  • 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 Settings

  • Max Buy Orders: Max Number of buy orders at the same time
  • Max Sell Orders: Max Number of sell orders at the same time
  • One Trade Bar: if true, robot can open only one trade for bar.

Trading “Dark Moon MT5"

Dark Absolute Trend MT5 Indicator

Dark Moon MT5 trades with several strategies following the Dark Absolute Trend MT5 indicator.

This indicator is based on the trend following strategy, but also uses candlestick patterns and volatility.

Positions are not increasing and are being settled smoothly

A state in which positions are accumulated and then closed

As shown below, when the “Buy" position is accumulating in the downside, follow the signal and perform a “Sell" trade of opposite trading to secure profits even during buying.

  • The EA increases the number of lots in the martingale method if the rate goes backwards (albeit equality). By default, the initial lot is 0.01, after the second position it is 0.02 ⇒ 0.03 ⇒ 0.04 ⇒ 0.05 ⇒ … and so on. If you double the initial lot to 0.02, then 0.04 ⇒ 0.06 ⇒ 0.08 ⇒ 0.10 ⇒ … Lots that increase as in are also doubled.
  • In other words, it is easy to scale up according to the amount of funds.

Screening of supported currency pairs/timeframes

First, as usual, we conducted a backtest using MT5’s “function to test all Market Watch symbols". The test conditions were NOZAX Zero Account (ECN), initial balance of 10,000 USD, period 1 January 2008 – 31 December 2022, default parameters, time axis M5, M15, M30, H1.

  • Compared Stocks: 20 Currency Pairs – AUDJPY#, AUDNZD#, AUDUSD#, CADJPY#, CADCHF#, CHFJPY#, EURAUD#, EURCHF#, EURGBP#, EURJPY#, EURUSD#, GBPAUD#, GBPCAD#, GBPCHF#, GBPJPY#, GBPUSD#, NZDUSD#, USDCAD#, USDCHF#, USDJPY#
  • M5
  • M15
  • M30
  • H1

Selection by the size of the drawdown

When optimizing a martingale type EA, the author gives top priority to “small drawdown and no stopout for a long time". (Please note that due to differences in screening policies, there are many cases where the supported currencies recommended by EA authors differ.) ）

The currency pair enclosed in the frame in the table above is a currency pair that may be able to operate stably without stopping out. Among them, CHFJPY# for M30 and USCAD#, EURGBP#, USDJPY#, AUDJPY#, NZDUSD#, GBPJPY#, USDCHF#, CADJPY#, CADCHF# for H1 seem to have a small drawdown.

Individual backtesting

Since the detailed profit and loss curve cannot be known only from the figures in the table above, we conducted individual backtests on the 10 pairs obtained by screening.

  • Account: NZX Zero (ECN) (NOZAX)
  • Initial Balance: $10,000
  • Parameters: default
  • Period: 1 January 2008 – 31 December 2022
  • P/D=Total Net Profit/Equity Drawdown Maximal
  • CHYJPY# M30
    Total Net Profit:
    3516.51 USD
    Equity Drawdown Maximal：
    2967.12 USD

    P/D ≒ 1.19
  • USDCAD# H1
    Total Net Profit：
    1592.42 USD
    Equity Drawdown Maximal：1020.64 USD

    P/D ≒ 1.56
  • EURGBP# H1
    Total Net Profit：
    2773.06 USD
    Equity Drawdown Maximal：
    1965.70 USD

    P/D ≒ 1.41
  • USDJPY# H1
    Total Net Profit:
    1729.66 USD
    Equity Drawdown Maximal：
    1661.21 USD

    P/D ≒ 1.04
  • AUDJPY# H1
    Total Net Profit:
    1606.94 USD
    Equity Drawdown Maximal：
    1890.81 USD

    P/D ≒ 0.84
  • NZDUSD# H1
    Total Net Profit:
    1773.22 USD
    Equity Drawdown Maximal：
    2096.64 USD

    P/D ≒ 0.84
  • GBPJPY# H1
    Total Net Profit:
    1936.54 USD
    Equity Drawdown Maximal：
    1834.40 USD

    P/D ≒ 1.06
  • USDCHF# H1
    Total Net Profit:
    1958.38 USD
    Equity Drawdown Maximal：
    2038.09 USD

    P/D ≒ 0.96
  • CADJPY# H1
    Total Net Profit:
    1815.09 USD
    Equity Drawdown Maximal：
    1887.21 USD

    P/D ≒ 0.96
  • CADCHF# H1
    Total Net Profit:
    1114.73 USD
    Equity Drawdo    wn Maximal：
    1751.14 USD

    P/D ≒ 0.63

The high profitability of operating in a short time frame is attractive, but depending on when the operation starts, I think that funds will be easily lost. In order to reduce the risk, it may be good to consider operation in H1.

Judging from the above backtest results, USDCAD H1 was estimated to have the largest and most stable value of the profit/surplus maximum drawdown. However, the profit itself seems to be insufficient, so you may want to adjust the number of lots according to the amount of funds.

Backtesting at USDCAD H1

USDCAD# H1
  • Account: NZX Zero (ECN) (NOZAX)
  • Initial Balance: $10,000
  • Parameters: Initial Setup
  • Initial Order: 0.03 Lot
  • Period: 1 January 2008-31 December 2022

As I always say, there is a good chance that something will happen to the Nanin Martingale type EA, so don’t be careful!

NOZAX

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Posted by GOMA