PersistentAnti Forex Expert Advisor

Concept Overview
The PersistentAnti EA leverages the concept of market persistence and anti-persistence to trade Forex. The Forex market often switches between two modes:

• Persistent Mode: Trends tend to continue in the same direction.

• Anti-Persistent Mode: Price movements tend to reverse direction frequently.

By identifying these modes, the EA aims to adapt trading decisions—trading with the trend in persistent mode and anticipating reversals in anti-persistent mode.

How It Works
Unlike conventional methods (e.g., Hurst exponent or Z-score), PersistentAnti uses a simple yet effective approach to detect market mode. It analyzes a fixed number (N) of previous bars and counts how often price bars continue or reverse direction compared to the previous bar.

• If the proportion of persistent bars exceeds a threshold (Ratio), the market is in persistent mode.

• If the proportion of anti-persistent bars exceeds the threshold, the market is in anti-persistent mode.

• If neither condition is met, the market mode is unclear, and the EA refrains from opening new trades.

Interestingly, the EA trades contrary to the detected mode by default—for example, in persistent mode, it buys after bearish bars and sells after bullish bars. This counterintuitive behavior stems from backtesting results and the reversible nature of the strategy, which opens trades at bar openings and closes them after one or two bars without stop-loss or take-profit.

The “Reverse” parameter allows toggling between trading contrary to or in line with the detected mode, giving flexibility based on user preference or market conditions.

Trading Algorithm Summary

• On each new bar, analyze the previous N bars for directional persistence.

• Compare each bar’s direction with the preceding bar to classify as persistent or anti-persistent.

• Close previous trades if an opposite position is warranted or if market mode is unclear.

• Enter trades based on the detected mode and the “Reverse” setting.

• No stop-loss or take-profit levels are applied; positions are closed automatically after 1 or 2 bars.

Backtest Performance

• Tested on EUR/USD weekly (W1) chart over 50 months.

• Initial deposit: $10,000; fixed lot size: 0.1 lots.

• Net profit: $1,996 with a maximum drawdown of 9.19%.

• Drawdowns may last over a year, so traders should be prepared for extended losing periods.

Input Parameters

• N (default = 10): Number of bars for persistence detection.

• Ratio (default = 0.66): Threshold for persistent/anti-persistent classification.

• Reverse (default = true): Trade contrary to detected mode if true, otherwise trade along with mode.

• Lots (default = 0.1): Fixed lot size (ignored if MM enabled).

• Slippage (default = 100): Maximum allowed slippage in points.

• MM (default = false): Enable fixed fractional money management if true.

• MaxPositionSize (default = 5): Maximum lot size when MM is enabled.

• OrderComment: Label for trades opened by EA.

• Magic: Unique identifier for EA’s trades.

Additional Notes

• ECN-Safe: Compatible with ECN brokers since it avoids stop-loss/take-profit or uses pending orders.

• Fully customizable with user-friendly input parameters.

• Suitable for traders interested in a novel approach based on market behavior patterns.