Method verification on FX Backtest Diary

YouTube's DEG Method: Our EA Reveals Its Hidden Trend Power!

Wed, 27 May 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “YouTube’s DEG Method: Our EA Reveals Its Hidden Trend Power!”.

What’s the Idea Behind This Strategy?

We’re always on the hunt for robust trading strategies, especially those that promise to combine powerful concepts. This time, we dove into a fascinating approach that merges three giants of technical analysis: Dow Theory, Elliott Wave, and Granville’s Rules. The goal? To build an Expert Advisor (EA) that can identify strong trends and capitalize on them. Here’s how the strategy was designed to work:

Supercharging "Breakout_h1": Our EA Platform's Enhancement Test!

Wed, 13 May 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “Supercharging “Breakout_h1”: Our EA Platform’s Enhancement Test!”.

Breakout entry example (XAUUSD daily, real data): buy when price breaks above the recent high.

Welcome back to the blog! Today, we’re diving deep into a fascinating strategy called breakout_h1. It’s a prime example of how rigorous testing can reveal hidden flaws and lead to a much stronger trading system.

YouTube's Granville Law: Our EA Test Found No Edge!

Mon, 11 May 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “YouTube’s Granville Law: Our EA Test Found No Edge!”.

Mean-reversion (RSI) signal example (EURUSD daily, real data): look for a bounce when RSI is oversold.

Have you ever stumbled upon a YouTube video promising to unlock the secrets of FX trading with a simple indicator? Many of us have! This time, we put a popular strategy based on Granville’s Law and the 200-period Exponential Moving Average (EMA) to the test. The specific goal? To reliably catch the elusive “Wave 3” in a trend.

YouTube FX Strategy Exposed: Our EA Test Found "False Positives"!

Sun, 10 May 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “YouTube FX Strategy Exposed: Our EA Test Found “False Positives”!”.

Breakout entry example (XAUUSD daily, real data): buy when price breaks above the recent high.

Unmasking YouTube FX Strategies: The EMA Cross & Pullback Test

We’ve all seen those captivating YouTube videos promising easy profits with a simple trading strategy. As your EA verification blog editor, I’m always curious to put these claims to the test. This time, we tackled a popular approach: the 4-hour (H4) EMA cross with a pullback entry. Was it the holy grail, or just another mirage? Let’s dive in!

Price Action for EA: The Unsolved Challenge! Why This Automation Attempt Failed.

Mon, 04 May 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “Price Action for EA: The Unsolved Challenge! Why This Automation Attempt Failed.”.

What Was the Idea? Quantifying Price Action

We’ve all seen those popular trading textbooks and courses that talk about “Price Action” (PA). Things like a long wick (or “shadow”) on a candlestick signaling price rejection, or an engulfing candle suggesting a reversal. These patterns are often touted as powerful tools for discretionary traders. But can we actually turn this intuitive “reading” of candlesticks into hard, mechanical rules for an Expert Advisor (EA)? That was the big question for this research! Our goal was to take these common PA patterns – specifically, long wicks indicating rejection and engulfing candles suggesting a turnaround – and quantify them at the individual candlestick level. Think of it as trying to teach a computer to “see” what a human trader sees when they spot these patterns. We then wanted to see if adding this quantified Price Action as a “confirmation” filter would improve our already robust trading system. We’d previously identified genuinely strong horizontal levels (from Research 73, specifically those we rated level >= 20 for their historical significance) as a fantastic edge. So, the hypothesis was: if price hits one of these strong levels AND we see a specific PA pattern, would that make for an even better trade signal?

Diagonal Lines for EA: Can "Channels" Be Quantified? Why This Idea Failed!

Sun, 03 May 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “Diagonal Lines for EA: Can “Channels” Be Quantified? Why This Idea Failed!”.

This time, we tried to automate and verify the effectiveness of diagonal channels – those trendlines you often draw on charts – and the results were a clear “no go.”

What’s the idea?

In our journey to verify the components of a popular discretionary trading approach (let’s call it the “Yosuga style”), we’ve been tackling its core elements one by one. Previously, we had great success quantifying horizontal support and resistance levels (which we discussed in Research 73). These levels proved robust and profitable in our automated tests. Now, it was time to turn our attention to the other major line element in this style: diagonal channels. The goal was simple: could we take the concept of drawing a channel between two swing points, score how price reacts to those lines (touches, bounces), and use that information to generate profitable trades? We wanted to see if these diagonal lines, often used by manual traders, could hold up under rigorous automated testing.

Unlocked: Powerful Trading Edge Integrated into EA! Will Performance Skyrocket?

Sat, 02 May 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “Unlocked: Powerful Trading Edge Integrated into EA! Will Performance Skyrocket?”.

Connors RSI2 entry example (USDJPY daily, real data): buy the dip when price is above the 200-day SMA and RSI(2) falls below 10.

EA's New Vision: Quantifying "Effective" Lines! A Game-Changer for Winning Logic?

Fri, 01 May 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “EA’s New Vision: Quantifying “Effective” Lines! A Game-Changer for Winning Logic?”.

Breakout entry example (XAUUSD daily, real data): buy when price breaks above the recent high.

The “Logic of Lines”: Can We Code Discretionary Trading?

Have you ever wondered if the “gut feeling” a seasoned trader uses to spot support and resistance lines could actually be turned into code? One of our sharp-eyed users suggested that discretionary trading isn’t just intuition; it’s based on logical lines that, if quantified with low discretion, could statistically win. In other words, if we can objectively define what makes a line “effective,” we might find a real edge, distinct from the kind of overfitting you sometimes see in machine learning. This idea was too good to pass up, and it led us to significantly upgrade our testing platform.

Yosuga EA's Secret: Limiting Entries to "Line Vicinity" Boosts Performance!

Thu, 30 Apr 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “Yosuga EA’s Secret: Limiting Entries to “Line Vicinity” Boosts Performance!”.

This post wraps up our deep dive into the ‘Yosuga-style’ trading method, specifically testing a key discretionary filter. The goal was to see if a particular rule, claimed to boost profitability, could be successfully turned into a mechanical Expert Advisor (EA).

Yosuga's Dow Method: Can This Trend-Following Secret Be Automated by EA?

Wed, 29 Apr 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “Yosuga’s Dow Method: Can This Trend-Following Secret Be Automated by EA?”.

What’s the Idea Behind This EA?

We recently got our hands on some intriguing educational materials from a trader known as Yosuga (dating back to 2022). His core philosophy really resonated with us: “Trend following is the only way to win in FX,” and “FX is all about catching the very beginning of a trend.” Guess what? This aligns perfectly with what we’ve discovered in our own research here on the blog! It’s always great when independent conclusions point in the same direction. So, the goal for this project was to take Yosuga’s Dow Theory-based trend trading strategy and see if we could turn it into an Expert Advisor (EA) – basically, automate it. Could we capture his successful insights in a machine-driven trading system?

Japan's "10 Billion Yen Trade": Can We Replicate Its Winning Edge in EA?

Fri, 17 Apr 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “Japan’s “10 Billion Yen Trade”: Can We Replicate Its Winning Edge in EA?”.

Today, we’re diving into the popular FX trading style of a well-known Japanese educator, Ishin-no-suke, to see if its core principles can be successfully automated as an Expert Advisor (EA).

Who is Ishin-no-suke?

Ishin-no-suke is a prominent Japanese FX educator based in Bangkok. He’s quite well-known for his books (like “Ishin-ryu Trade-jutsu”), blogs (multimillionaire-trade.com, fx-lifeschool.info), and YouTube channel, where he teaches his approach to trading. His focus is primarily on discretionary day trading, meaning he relies on human judgment and skill rather than rigid, automated rules.

Can This External EA Deliver? "ATR Candle Breakout" Put to the Test!

Sun, 12 Apr 2026 00:00:00 +0000

A beginner-friendly summary of the verification: “Can This External EA Deliver? “ATR Candle Breakout” Put to the Test!”.

Breakout entry example (XAUUSD daily, real data): buy when price breaks above the recent high.

What’s the idea?

We’re always on the hunt for promising algorithmic trading strategies (EAs), and this time we turned our attention to bmtrading.de, an external vendor. They offer a range of EAs for MT5, and after a quick scan, one caught our eye: the ATR Candle Breakout EA. This strategy targets Gold (XAUUSD) on H1 (1-hour) and H4 (4-hour) timeframes. The core logic behind the ATR Candle Breakout is pretty neat: it looks for a “breakout” candle whose range (high minus low) is significantly larger than the average true range (ATR), which is a measure of volatility. If such a candle closes near its extreme (either high for a bullish candle or low for a bearish one), the EA assumes momentum is kicking in and enters a trade in that direction. It then sizes the trade based on volatility and uses an ATR-based trailing stop to protect profits. The vendor’s public backtest claims for this EA were quite attractive (using real tick data from 2015-2026): a total profit of +39%, a Profit Factor (PF) of 1.15, a maximum drawdown (DD) of around 9.6%, with 1552 trades and a win rate of approximately 23%. (For those new to the terms: Profit Factor (PF) is simply your gross profit divided by your gross loss; anything over 1.0 means the strategy is profitable. Drawdown (DD) is the peak-to-trough decline in your capital, a key measure of risk.)