ArrowForex Trading Strategy: Automated Support and Resistance Analysis for Enhanced Profit Opportunities!
- Writer
- Mar 6
- 3 min read
ArrowForex is a reversal trading system that primarily uses support and resistance levels as key signals, while employing the stochastic oscillator as a secondary indicator.
The Expert Advisor (EA) is programmed to execute a buy order when the candlestick chart hits the support line, coinciding with an oversold signal in the stochastic oscillator. Conversely, it will initiate a sell order when the opposite signal occurs.
Despite operating within the M15 timeframe, this system maintains a relatively low number of orders. This is because it not only waits for the chart to reverse at the support or resistance lines but also applies price action techniques to confirm the reversal.
As such, this strategy is not geared towards frequent trading simply to earn rebates from brokers; rather, it's intended for trading aimed at generating consistent cash flow each month.
This EA has been actively trading on a live account for over a year. Traders monitoring performance via Myfxbook will recall the severe downward trend of the EUR/USD pair during late 2024 (September to November). Many trading systems in both domestic and international markets faced stop loss triggers, with some even resulting in complete account wipeouts, including highly priced EA offerings. However, our ArrowForex system successfully navigated through that challenging period. Despite a higher drawdown on the live account, when compared to other EAs using the Martingale strategy and trading the same currency pair during the same timeframe, ArrowForex stands out as a highly efficient trading system since it managed to avoid any losses, even a single dollar.
This EA automatically draws support and resistance lines on the chart. When trading with the MT4 platform, users may experience significant delays, causing the EA to execute orders later than expected. Therefore, the ArrowForex EA will be exclusively sold for MT5. Currently, the software developers at MetaQuotes recommend using MT5 over MT4 due to its superior performance in many aspects and its continuous updates and developments.
Backtest Results for ArrowForex on EUR/USD (M15) using Tickmill MT5
The backtest results of the ArrowForex system on the EUR/USD pair with a 15-minute timeframe, utilizing Raw account settings from Tickmill, demonstrate impressive performance. Starting with an initial capital of $10,000 in 2015 and trading until 2024, the total profit achieved was an astounding $248,456.
*Please note that past performance does not guarantee future results.
ArrowForex Trading Strategy
The system draws support and resistance lines based on the swings identified by the ZigZag indicator (which can be configured within the EA). When the price touches one of these lines and a corresponding overbought or oversold signal appears, the EA will place the first order using the lot size specified by the user in the EA settings. If the chart reverses as anticipated and reaches a Take Profit (TP) of 60 pips, the system will automatically close the order and await the next trading signal.
If the price continues to trend upward or downward (not reversing as anticipated), the EA will place a second order with the same volume once the price moves an additional 40 pips beyond the first order. If the price does reverse, the EA will close both orders when achieving an average profit of 50 pips per order. However, if the price continues in the original direction, the EA will adopt a Martingale strategy, doubling the lot size for orders 3 to 5. For order 6 and beyond, the volume will be reduced to 1.5 times the initial size to mitigate the risk of excessive lot sizes. The system is programmed to limit the maximum number of open orders to 8 on either side (a maximum of 8 buy orders or 8 sell orders).
Additionally, if the EA places 4 or fewer orders, it will close all orders only when in profit. Conversely, if more than 4 orders are executed, the system prioritizes capital preservation over profits, closing all orders immediately when the chart reverses to a point where the total of all orders breaks even. The maximum risk for this system is set at a stop loss of 60% of the account balance, which users can customize based on their preferences within the EA settings.
Recommendations for Using ArrowForex:
- Account Type: Best suited for accounts with low spreads, such as ECN, Raw, or Pro accounts.
- Leverage: Should be set at 1:100 or higher.
- Initial Capital: A minimum of $2,000 for standard accounts or $2,000 US cents for cent accounts (2,000 US cents = $20).
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