VanguardPrime Trading Strategy: Identifying Reversal Points with the Relative Vigor Index
- Writer
- Mar 7
- 3 min read
Updated: 6 hours ago
VanguardPrime is a reversal trading system designed to enter orders upon detecting reversal signals. This strategy focuses on the AUD/USD currency pair, one of the seven major currency pairs, ensuring low spreads and high liquidity.
What sets the VanguardPrime EA apart from our other EAs is its frequency of trades and the relatively high capital it requires. We recommend that users operate with a Cent account and start with a trading capital of 10,000 US Cent (equivalent to 100 USD).
For investors who choose to set AutoLot_BasePercentOfBalance to 1 in the EA settings, when their balance is 10,000 US Cent, the VanguardPrime trading system will execute the first order at 0.01 lot. If the market moves favorably, the EA will close the first order immediately according to the pre-defined pip target. However, if the market does not reverse as anticipated, the EA will proceed to place a second order with the same volume as the first and will implement a Martingale money management strategy starting from the third order.
The VanguardPrime EA has demonstrated resilience through financial crises over the past 15 years. We conducted backtesting using high-quality tick data, which is 100% real ticks—the most detailed historical price data available. This premium data was acquired from banks, as opposed to the freely available data found on general websites. While past performance cannot guarantee future results, these extensive research and testing efforts, ongoing since 2010, give us increased confidence in our strategy.
The backtest results for VanguardPrime on the AUD/USD pair with a timeframe of M15 on the Vantage MT5 broker, using a Standard Raw account, show that starting with 10,000 USD in 2010 and continuing to 2024, the total profit amounts to 151,731 USD. There were a total of 11,844 trades executed, averaging about 65 trades per month.
You can check live account trading results on Myfxbook.
VanguardPrime Trading Strategy
VanguardPrime enters trades when the chart indicates a reversal, primarily utilizing the Relative Vigor Index as a key signal. It also incorporates Bollinger Bands and the Demarker indicator to filter out false signals.
A Buy order is initiated when the price is below the Bollinger Bands Lower, and simultaneously, the Demarker indicator must be below 0.6. Conversely, a Sell order is triggered when the price is above the Bollinger Bands Upper, with the Demarker indicator exceeding 0.5.
The Buy and Sell orders operate independently, allowing both to be opened simultaneously. However, profits are accounted for separately for Buy and Sell positions. If the EA opens an order and the market moves against it, Martingale money management techniques will be employed to rectify the situation and return to overall profitability. Each order will be spaced at least 15 pips apart (this can be adjusted in the EA settings under TradeDistance).
The EA does not open a new order immediately for every 15 pips of negative movement. Instead, it utilizes calculations and forecasts, incorporating additional indicators, to ensure that orders are only placed during genuine reversal signals.
Historically, the VanguardPrime system averages more than one order per day, setting it apart from our other EAs, which typically generate fewer trades. If you’re looking for an EA that keeps your portfolio active daily, VanguardPrime is a compelling option to include in your EA collection.
Recommendations for Using EA VanguardPrime
Account Type: It's advisable to use an account with low spreads, such as an ECN, Raw, or Pro account.
Leverage: Set leverage at 1:100 or higher.
Initial Capital: Start with 10,000 USD for a standard account or 10,000 US Cent for a cent account (10,000 US Cent = 100 USD).
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