is a fully automated trading system, developed by strategy developer and programmer Kay Stoeffler, CTO at Zefstech Ltd.
DWMP 1.1 was programmed in MQL4 as a so-called "Expert Advisor" (EA) for the well-established and widely used trading platform Metatrader 4 and is a product of several years of research, development and optimization.
In the development of DWMP 1.1, as of all other trading systems built by or for Zefstech, focus was put on achieving long-term profitability over a wide range of tradable assets (mostly currency pairs) under the occurrence of relatively acceptable drawdowns.
The results of extensive back tests indicate a consistently profitable performance for the period of at least the last 10 years.
The DWMP 1.1 EA can trade multiple currency pairs in multiple time frames alongside other EAs provided by Zefstech on one and the same Metatrader 4 account, being part of a portfolio of diversified trading strategies that distribute risk across a variety of different assets and strategies and help to compensate losses and minimize drawdowns.
The DWMP 1.1 strategy
The DWMP 1.1
EA opens a position if price touches a targeted daily, weekly or monthly pivot level or one of the 3 pivot S/R levels during a retracement. If all the conditions are right, it is expected that price will bounce off of that level and that the mid-long-term trend will resume.
Various indicators and methods of technical analysis are being used to validate the trend and filter the signals.
RSI is used to check on overbought / oversold condition.
trades quite rarely, and thus, by itself, it generates relatively low returns. It is recommended to use this strategy in combination with other strategies.
Traded pairs and trading time ranges
On the basis of the most recent back test results, DWMP 1.1
is currently set to trade the following currency pairs without any time restrictions (24/5):
EURUSD, GBPUSD, AUDUSD
Best & worst market conditions
The DWMP 1.1
strategy should be performing best during healthy trends, when market is not too volatile and price bounces off of the pivot levels on pull backs.
Poor performance is to be expected during intense price moves against the actual trend, breaking through the pivot levels.
- Trend-following strategy, based on daily/weekly/monthly pivot levels.
- Trades multiple currency pairs on one account / platform.
- Trades in 3 pairs of time frames (entry/pivot&trend): H1/D1, H4/W1, D1/MN1.
- Trade frequency (with 3 pairs): approx. 6 trades per month in average.
- Lot size parameter can be set for each time frame and each pair individually.
- Trading time scheduler (time ranges in which trading is allowed or not allowed can be specified for each pair individually).
- Spread limit (can be configured for each time frame individually).
- Daily gain target and daily loss limit.
Clients of Zefstech
can apply the DWMP 1.1
strategy to their MT4 account(s) as part of their managed trading portfolio within Zefstech
‘s Trade Copying & Portfolio Management System
allows investors to instantly add and remove trading strategies from their MT4 account(s) and to monitor the performance, temporary deactivate/reactivate strategies and, if necessary, close all or individual positions via the "MT4 Monitor & Control Panel
More information about the TCPMS and how to sign up as an investor can be found at Zefstech.com.
DWMP 1.1 back tests
Here is an example of a DWMP 1.1
back test result:
Number of currency pairs tested: 3
Test period: 2007.01.01 – 2016.12.31 (10 years)
Risk model: 6:1 leverage / –1.2% daily loss limit
Initial deposit: $100,000
Total net profit: $134,326
Profit factor: 1.401
Sharpe ratio: 0.1649
Win rate: 51.99%
Max. drawdown: 7.61%
Detailed back test reports can be found on our Downloads page.