Indices Master EA

Indices Master EA, like its name, is an MT5 EA that is specialized in trading Stock Indices CFD using the Martingale strategy.

Stock Indices have quite different characteristics compared with Forex Market. First, it does not trade in all 24 hours per day. There are a few hours of non-trading period and it is also less active in non-market hours too. Hence, the trading strategy will need to be optimized to support its characteristics.

Trading Strategy

Live Account Performance

For Indices Master EA, you can let it run on single indices or multiple indices ( up to all 4 indices of AU200, HK50, UK100, and US500). In general, if you run with single indices, it will have less chance to hit margin calls and also be less profitable. If you run with all 4 indices, the profit will be higher but is also higher risk to hit the margin call.

It will depend on your individual risk profile to decide how many stock indices you want to run within a single account. You can also take an incremental approach to start with 1 index and then slowly add more indices.

For our live account performance tracking, we have two account tracking for now. One is only a single index of UK100, while the other one is 4 indices in a single account.

For the UK100 account, we started trading on 4 Jul 2022 with a base capital of USD 2,000. All trades are myfxbook verified.

The following is the monthly profit chart since the inception of the UK100 account.

Update on 30 Nov-> We hit a margin call in Nov 2022 and then top up USD2,000 and start again in Dec 2022.

For the multi-indices account, we started trading on 1 Aug 2022 with a base capital of USD 2,000 too. All trades are myfxbook verified

The following is the monthly profit chart since inception for the multi-indices account.

Update on 30 Oct -> We hit a partial margin call ( with a few orders closed) on Oct 2022. Hence, you see that is a negative month but is still profitable overall.

As you can see from the live trading result, Indices Master EA has quite a different profit profile from Ophiuchus EA. The profit fluctuates up and down every month. You can have 40% profit in one month but then 5% profit another month.

Please note that past performance is not equivalent to future performance. Future performance depends on the market condition.

Backtest Performance

For stock indices, the historical period that we have in Metatrader is shorter and only the more recent one has good history quality. Hence, we can only back-test with the recent period.

All backtest are tested with the following profile

• Period – Dec 2020 till Jul 2022 (19 months in total)
• Trade on the following stock indices pair on the M1 timeframe.

The summary of the result of each stock indices is as follows.

Stock Indices	Initial Deposit (USD)	Total Net Profit (USD)	Total Trade	Gain Percentage	Back Test Report
UK100	2,000	6,705.61	404	335%	Report
US500	2,000	3,599.98	451	179%	Report
HK50	2,000	3,598.55	1204	179%	Report
AU200	2,000	3,243.73	224	162%	Report

Each backtest is assuming only running Indices Master EA on the single trading account.

Unlike Limitless EA and Ophiuchus EA where most of the trades only took hours or days to close, trades from Indices Master take longer to close. It could take days or even weeks to close. The profit for each trade generally is higher than Limitless EA and Ophiuchus EA too.

Broker’s Requirement

• Must be a broker that supports MT5. Indices Master EA is only available in the MT5 version.
• Use a broker with no commission charge
• Leverage must be 1:500 or above
• Can run on a Cents account or a Micro Account if you want to start with smaller capital.
• Run this EA on selected stock indices on the M1 timeframe.
• The minimum capital is USD 2,000 to start. Refer to the starting lot Calculation below.

If you are new to forex or do not have a broker account, you can register with our recommended forex broker that fulfills the above requirements -> FBS Broker

For stock indices, we realized that different brokers will have different specifications for the stock indices. For example, the contract size is different or the margin calculation is different. Hence, for the time being, we recommend all our clients use FBS Broker to obtain the best result.

Single Indice vs Multiple Indices

This is the tricky one. In general, running Indices Master on a single indice should be safer compared with multiple indices as your exposure to the market will be lesser and should be less risky. However, running on multiple indices also provides you with additional advantages such as the ability to generate more returns on daily basis and reduce your chance to hit margin calls. ( of course, the exposure part also makes your account a higher chance to hit margin calls too).

There is no general guideline or recommendation in this area. All users are advised to decide based on their own circumstances and risk appetite.

	Pros	Cons
Single Indice	– Less Risky. – Easier to manage as only one Indice – Less Exposure to market	– Less Profit – Could have days without closed trades and profit.
Multiple Indices	– Higher Profit – More likely will have closed trades and profit every day	– Riskier – More indices to manage – Fast profit generation allows you to have more capital in account to prevent a margin call

In the case of running multiple indices in a single account, we recommend you do some hedging using the trade buy trade sell button if you know how to read the trend. For example, you can have two pairs like UK100, AU200 on buy trade, and HK50, UK100 on sell trade. In general, US500 tends to lead the trend for the global market stock market. However, there are always events or incidents that might over-power the major trend. Eg, Covid restrictions in China caused HK50 to drop, Change of the UK Prime minister make UK100 rally.

Available Setting

• Select Indices Mode – Select the indices mode based on which indice you are going to trade. It supports UK100, US500, AU200 and HK50.
• Starting Lots – The lot size for the first order. Refer to the starting lot calculation below.
• Maximum # of trades – Maximum number of orders the EA allows to open on the Martingale series of order. You can lower this number to reduce the risk and the chance of MC. The lower number of this value will increase the chance that the order will not able to close as it is too far from the target profit.
• Max Spread Allow – Only will open order if the spread is within this value. Change it based on your broker’s spread. Different indices will have different spread, adjust it according to the indices spread that you observe in normal time.
• Magic Number – Unique identifier for orders traded by this EA. We recommend you have a unique magic number for each indice so that you can separate out the orders for each indice easily.
• Stop Trading New Series – Refer to Common Features of Limitless Trading EA.
• Enable Last Trade – If this is enabled(set to true), no new order will open after the orders series are closed. Handy when you want it to stop trading after the current orders are closed.
• Re-update profit target for orders –  Refer to Common Features of Limitless Trading EA.
• Enable Auto Switch on Trade Buy and Trade Sell – Refer to Common Features of Limitless Trading EA.
• Receive Notification after Total Order – Refer to Enable Mobile Notification.

You can leave most of the settings as default values except the following:

Indice mode must change to the indices that you want to trade. Setting the wrong indices mode will cause the EA to use the wrong algorithm for trading.

 Starting Lots must change with this formula

Starting Lots= Capital / 200,000

For example, you need to start with a 0.02 lot with an initial capital of USD 4,000.

You can choose to use a higher number than the recommended Lot Ratio (eg. 200,000) above like 300,000 or 400,000 for a safer configuration.  However, a safer configuration means lesser profit too, but you will have a lesser chance to have a margin call. You will need to balance risk and reward yourself.

Max spread allow must change to the normal spread value for the selected indice. The EA will not open an order if the spread is higher than the max spread allow value.

Key in the License key that you get from us to start trading.

Risk Management/Profit Management

This EA is using Martingale based strategy. All Martingale strategy always has a risk of Margin Call ( MC )

Compared with Ophiuchus EA, Indices Master might have a higher risk of hitting Margin Call but the profitability for Indicas Master is specifically designed to capture more profit for each trade. This design compensates the risk with profit. As the margin requirement for these stock indices tends to be lesser compared with Forex, hence, the same capital can support multiple indices.

Since Indices Master will have a higher chance to hit Margin Call, we recommend all our clients withdraw the monthly profit at every month’s end in order to control the risk for your account.

Follow the bellows to control your risk:

• Follow the capital/account requirements above.
• Withdraw the profit every month end. Eg, if your capital is USD2,000. At month end, it becomes USD2,300. Withdraw USD300 to an idle account.

You also need to prepare yourself to have a trader mentality and focus on the bigger picture (long-term view ) rather than short-term volatility. We recommend all our clients read in detail the following articles. This will help you to prepare your trader’s mentality.

• How to Handle Risky Moments for Martingale EA
• Key Success Factors for Martingale Strategy

If you have any questions or feedback, you can contact us or chat with us.

If you are new to Algorithmic Trading or Forex Trading, you can join our Algorithmic Trading Apprentice Program, where you will provide a step-by-step guide from understanding how it works to running your own trading bot to generate passive income for you. You can refer to our Algorithmic Trading Apprentice Program for more information.

You can also directly purchase the EA through our shopping cart.