Basic Ehlers Cycle Strategy

This is the expert I used to test the basic Ehlers basic Cycle Strategy. More details about this EA you can find here.

Installation:

You need to install the Cycle period indicator unless you already have it in your indicators folder.


Critical appreciation:

Unfortunately it is not for the category what is working now. I made this custom mod of the Universal Moving average EA specially to test the trading strategy of Ehlers from the book. MESA and Trading market Cycles. by Ehlers p. 39.

You know when you read books you have always to check the ideas against the reality. And the reality breaks the most idealistic and beautiful mathematical representations.

So globally it is not working.

On the other hand this has to work only if the market is in cycle mode, and we cannot blame Ehlers that the market is not in cycle mode :). And the poor results can be explained by the fact that the market was in trend mode.

So the question is if it is working well when the market is in cycle mode.

On 4 h and the daily time frame it was able to trade very well some recent cycles.
Look at the screen shot with the test on the daily period. No optimization here. It fails when a trend develops and works nicely on cycles detecting well the reversal points. I think that after all it may be useful.