Red Hawk EA: Mean Reversion Trading System for Forex

Red Hawk EA is a “mean reversion” trading system designed to trade during the quiet times of the market. Currently, it operates on nine currency pairs: EURUSD, GBPUSD, USDCHF, EURCHF, EURGBP, AUCAD, AUDJPY, EURAUD, and USDCAD. The recommended timeframe is M5.

Since this strategy works best with low spread and fast execution, it is advised to use a good ECN broker.

IMPORTANT FOR AUTOGMT: Add the address ‘https://www.worldtimeserver.com/’ in the list of allowed URLs on the ‘Expert Advisors’ tab.

This EA has a live track record of many months of stable trading with low drawdown. (Check the comments page for updates on live performance.) The strategy uses a safety stop loss and take profit for each trade, with multiple trailing stop loss techniques to minimize risk and maximize profits. This EA does not use any risky trading techniques like grid or martingale.

The EA runs fully automatically and does not require manual interventions. It utilizes many internal filters to ensure it does not trade when market conditions are not ideal (e.g., big spreads or “hectic” markets). However, it is recommended to turn off the system on extreme news days, such as US Elections.

IMPORTANT: The EA only trades during the quiet times of the night (around rollover time).

Setup:

The EA is very easy to set up. Simply run the EA on an M5 chart for each of the supported currency pairs and select your risk. You do not need any .set files, as all the settings are stored internally in the EA for the optimized pairs.

You may need to change the GMT setting if your broker uses a different GMT offset than:

– GMT offset winter = +2

– GMT offset summer = +3

This GMT offset is mostly used by brokers. However, if your broker uses different GMT offsets, you must change the “GMT offset (winter)” parameter to the value your broker uses during winter. If you are unsure, please check with the EA provider. It is important that the EA trades at the correct hours.

Risk Settings:

• By default, the EA uses a fixed lot size of 0.01 lots. You can change the fixed lot size by adjusting the parameter “StartLots.”
• You can also select an automatic lot size, either by balance or by risk per trade.

Lot Size by Balance:

• The EA will use 0.01 lots for every X amount of balance (set in the LotsizeStep).
• For example, a LotsizeStep=250 means 0.01 lots for each $250 in the account. At $500, the EA will trade at 0.02 lots, and so on.
• For Low Risk, use LotsizeStep=250.
• For Medium Risk, use LotsizeStep=125.
• For High Risk, use LotsizeStep=60. (Adjust these numbers if trading in a currency other than $/€.)

Lot Size by Risk:

• You can set the “Maximum” risk per trade. This means that if the initial SL is hit, it will be a maximum loss of X% of the balance. The initial SL is almost never hit, as the trailing SL will activate almost immediately.

For predefined low/medium/high risk sets, check this post.

Remember: Trade only with money you can afford to lose. Historical performance is never a guarantee of future performance. Always start trading with a demo account or low-risk setup to ensure this strategy suits your trading style.