When we developed the SpaghettiFX indicators we already had in mind the core elements of an automatic trading strategy based on this set of indicators.
Well, working with SpaghettiFX we ended up developing not one, but 4 automatic strategies.
Now these 4 strategies are available in the form of 2 distinct Spaghetti Trader EAs: two EAs that implement a total of 4 strategies.
The SpaghettiFX indicators are based on two sets of moving averages: a slow and a fast one. Each set represents a group of traders: the ones with a long term view of the market and ones more oriented towards a short term view.
By looking at how these two sets of MAs interact with each other, a manual trader can be able to determine when a trend is about to start, when it’s about to end and if there’s no trend in place at all.
But EAs can’t “look” at charts. That’s where our SpaghettiFX indicators set comes in. It “reads” the status of different MAs sets and analyses them in order to compute numeric values that can trigger trading decisions.
The Spaghetti Trader EAs are exactly the EAs that do this job.
Like the indicators set, they are able to read the market using the two sets of EAs and to trade accordingly.
The 4 strategies are based on our analysis of the SpaghettiFX indicators: “Signal“, “Trend“, “Indicator” and “STM“. We integrated them into two EAs (one only devoted to STM) and coded our trading strategies using them.
The result is an EA able to have very good performances in different pairs, and different timeframes.
Some pairs perform better than others and so do specific timeframes.
For example, based on our experience, the 30 minutes timeframe is the one having better short term performances.
For this timeframe we optimized our settings based on recent data to have it perfetly fit for the actual market conditions.
Here are this year backtests for the 30M timeframe along with the actual performances on our account:
AUDUSD 30M Backtest
AUDUSD 30M Account
EURUSD 30M Backtest
EURUSD 30M Account
GBPUSD 30M Backtest
GBPUSD 30M Account
USDCHF 30M Backtest
USDCHF 30M Account
USDJPY 30M Backtest
USDJPY 30M Backtest
For longer timeframes we used longer period of backtest and optimization. Here’s an example:
EURUSD 4H Backtest (since 2008)
The above performances has been reached using the first 3 strategies, but we developed a 4th one called STM (Signal Trend Match) that has a dedicated EA.
Here’s video backtest showing performances of this strategy alone:
AUDUSD 4H STM Backtest (since 2010)
EURUSD 4H STM Backtest (since 2010)
Consider that the “STM backtests” above have been performed without any kind of optimization, using only the default settings of SpaghettiFX, so there is surely room for improvement.
Also note that the SpaghettiFX STM strategy is the perfect complement to the OndaFX EA as they work using opposite strategies 😉
NuovaFX is our news indicator. As for all our latest EAs, we integrated the option to use the NuovaFX to filter entries based on forthcoming (or just released) news. This is an option and NuovaFX is not part of the package.
Although the strategy can work pretty well on any reputable broker, we personally use and suggest FinFx which offers top-rated liquidity providers and very competitive spreads.
What You Get
- Spaghetti Trader EA and Spaghetti Trader STM EA
- Setting Files for each pair and timeframe we backtested successfully
- An online manual with instructions
Ready To Buy?
If you are interested in the Spaghetti Trader EAs you can buy them from here.