Montag Expert Advisor - Profit on Mondays

It is no secret that Friday and Monday on Forex are special days. The beginning and end of the trading week conceal quite a few pitfalls and patterns associated with them. One such interesting Monday pattern is used by the expert advisor Montag. Moreover, the pattern has an extremely high win rate.

In the review of the Montag expert advisor, as usual, we will look at historical tests, real-time performance monitoring, and sort out the settings and money management.

Platform: Metatrader 4
Expert advisor version: 2.5.1
Currency pairs: EURUSD, GBPUSD, USDCHF, USDJPY, USDCAD
Timeframe: M1
Operating time: once a week
Recommended brokers: Alpari, RoboForex, Amarkets

Before we move on to the review of the expert advisor, I would like to express my gratitude to its developer, our forum member Rigal, who kindly shared it on the forum. And also to all the forum members who participated in developing the sets.

The robot is installed according to the standard instructions. If you are a beginner in trading robots, I recommend studying the course "Forex on Autopilot." After the course, most of your questions will disappear.

Attention! Make sure that the terminal settings allow saving 11520 history bars, which the expert advisor needs for trading on M1!

To do this, go to Tools->Options->Charts.

Also pay attention to the settings presets; if you do not know what they are, go here.

And to the separate parameters: GMT offset and money management.

The expert advisor implements three entry strategies:

Agree, all three sound very similar.

Testing showed that the third type of entry is the most effective (nevertheless, you can conduct your own research), and that is the one we use in all sets (settings packages) for the expert advisor.

We place the stop-loss beyond the High or Low level (depending on the position) of the signal candle, with a specified offset not less than the set value and not greater than the set value. The take-profit is fixed.

What does it look like? Let us break down the third type of entry with an example:

Simple? Yes.

Effective? Quite so - see the monitoring below.

Can this be called trading gaps? Yes, essentially it is a variation of it.

The stop is several times larger than the take-profit. It sounds scary, but thanks to the high win rate (more than 90% profitable trades), we have a profitable system. Regarding the ratio of take-profit to stop, I recently made a separate video.

Historical testing does not replace real-time tests under any circumstances; nevertheless, it allows you to roughly assess the potential of the strategy.

The tests below are based on the sets that you will find in the archive with the expert advisor at the end of the review. You will also find additional sets, as well as tests for them, in the expert advisor thread on the forum.

I remind you that we run tests with a fixed lot of 0.1 for a more adequate understanding of the advisor's behavior and the size of the drawdown, as well as regular tests with money management enabled for those who like them (although personally I do not understand what the point of them is).

The tests below were done in Tick Data Suite with 99% modeling quality.

Win rate 100%) The EURUSD pair is the most stable.

The win rate is slightly worse, 93%, but with Recovery mode (more about it below) it also performs excellently.

For the yen, the win rate is already noticeably lower, 84%, but it is still very good.

Surprisingly, USDCHF also, like EURUSD, delivers a 100% win rate in tests. Perhaps this is due to the strong correlation with EURUSD.

USDCAD is not ideal, but it also has a high win rate.

Above is the monitoring widget for this expert advisor; if you click it, you will go to the page with the detailed trading history.

Over almost 1.5 years, the expert advisor showed an overall win rate of 94% across all pairs (at the time of writing), and 100% on EURUSD, which proves to us the truthfulness of the historical tests.

What is important is that we saw losses and that the equity curve comes out of them. In an expert advisor with such a “harsh” profit-to-risk ratio, this is extremely important. That is, we make sure that the high win rate really outweighs the large size of the stop.

First of all, load the preset for the pair on which you are installing the expert advisor, and only then adjust the settings if needed.

In addition to the preset, pay attention to the Start Lot, One Start lot per amount parameters (more details in the Money Management block), and GMT offset (see How to Set GMT Offset Correctly); it is better not to touch the rest if you do not understand it.

The expert advisor uses a money management method uncommon for auto-trading, namely a fixed fractional.

For example:

We set the starting lot at 0.01 for every 1000 dollars of deposit. As soon as the deposit increases to 2000 dollars, the advisor will trade with a 0.02 lot. Starting from 3000, with a 0.03 lot, and so on.

Based on observations of the advisor and tests on historical data, I recommend using a 0.01 lot for every 100 $ of deposit.

Recovery Mode is used in all presets except EURUSD. What is it? If the advisor takes a loss, then it opens the next positions on this pair with a doubled lot until it recovers the losses. Since our win rate is very high, such a tactic is acceptable.

If you want to disable Recovery Mode, then set Recovery Factor to 1.0 in the advisor settings.

The Montag expert advisor proves in practice that a win rate of 100% profitable trades is achievable (see our monitoring for the EURUSD pair). A mini-grail that trades once a week is an excellent addition to your strategy portfolio, it seems to me. Be careful with the settings and do not overstate risks, then the Montag robot will make the “hard” Monday a little brighter with profit.

Important!

For the advisor to work correctly, the trading terminal must be turned on from the market opening on Sunday evening until its closing on Friday evening. If you do not have the ability to keep the computer operational 24/5, then it is recommended to use the VPS server service.