In statistics, regression towards the mean is a concept that refers to the simple fact that if a sample of a random variable is extreme, the next sample of the same random variable is likely to be closer to its mean.
Mathematically, the strength of this regression effect depends on whether or not all the random variables are drawn from the same distribution, the latter is what makes it difficult to apply this principle to the FOREX market, but it does not mean that it cannot be done.
Extreme Value MT5 uses the mean regression principle and the Fisher-Tippett-Gnedenko theorem to determine the entry of trades and a stochastic variant to determine betting strategies.
Launch price: $ 99.00. Regular Price (February 28, 2022): $ 500.00
Currently, work is being done so that the same EA determines the optimal parameters automatically, when this update is complete and is launched, the fair price for this EA will be much higher than the current one. The time to purchase is now! Test it!
Recommended TimeFrame: M5
Presets here: https://bit.ly/3sjkY1K
Input parameters:
First grouop of Candles: It refers to the number of candles per group, the maximum value within these groups of candles, they build a probability distribution according to the Fisher-Tippett-Gnedenko theorem.
MA_Period, MA_Method and MA_ApliedPrice: It is used for the construction of a moving average, the distances between the price and the MA construct another probability distribution, MA_Period is also the number of candles to analyze.
Betting Sequence Method: Refers to a numerical sequence that multiplies LotSize once the StopLoss has been touched, for example, if BettingSeq = FibonacciSequence and LotSize = 0.01, then the betting sequence would be 0.01, 0.01, 0.02, 0.03, 0.05 , 0.08, ... which will advance each time the StopLoss is touched.
Stop Loss Increases Sequence Method: Refers to a numerical sequence that multiplies StopLoss once the StopLoss has been touched, for example, if SLISeq = FibonacciSequence and StopLoss = 10, then the sequence of increases in the Stop Loss would be 10, 10 , 20, 30, 50, 80, ... which will advance each time the StopLoss is touched.
Common difference (Arithmetic) or ratio (Geometric): Refers to the difference (for Arithmetic Progression) or the ratio (for Geometric Progression), for example: if BettingSeq = GeometricProgression and Reason_Bet = 1, then the sequence of bets would be 0.01, 0.01, 0.01, 0.01, 0.01, 0.01, ... (which corresponds to the constant); if BettingSeq = GeometricProgression and Reason_Bet = 2, then the betting sequence would be 0.01, 0.02, 0.04, 0.08, 0.16, 0.32, ... (which corresponds to the classic martingale).
Data array size: size of an array that stores various data.
Magic Number: It is recommended to grant a different MagicNumber for each activated EA.
This EA takes advantage of the advantages that stochastic processes offer us and adapts to the user's level of aversion to risk (if you are a risk-neutral person, Geometric Progression is recommended with a ratio of 1.618). The configuration of the EA that I give you depends on the currency in which it will be activated, they are determined based on properties of the currency (such as its variance, the interquartile range, that the data of local maximums actually belong to the family of distributions of the theory of extreme values, among others), but the work of this is high and I have not been able to finish everything. The code is written in such a way that it uses the least possible computing resources, if you need to activate the EA on more currency pairs, you can run simulation.
DISCLAIMER: Never forget that past performance is no guarantee for the future; The mathematical tools used in this EA are statistically effective, but when trading live, other random variables appear that directly influence performance and are difficult to quantify, such as market manipulation by central banks, unexpected or extraordinary news , mass psychology, fear, euphoria, etc. It is advisable to work with a demo account or a very low leverage live account first to better understand how the EA works.
