This article is for educational purposes only and does not constitute financial advice. The author is not responsible for any losses incurred from the use of this strategy.
A beginner-to-intermediate friendly algorithm designed for Match-Trader, MT4/MT5, and TradingView
Why Build Another Strategy?
With the rise of prop firm challenges and new trading platforms like Match-Trader, traders are actively seeking robust strategies that don’t rely on overcomplicated tools or discretionary judgment. The HMA-CCI Chopper Strategy was developed to meet that demand: a simple, systematic, and adaptable triple-filter algorithm that is compatible with Match-Trader, MetaTrader (MT4/MT5), and even TradingView.
While many online strategies promise results, few are backed by data and designed specifically for the prop trading environment. This algorithm was optimized and tested to meet the unique requirements of prop firms: low drawdown, high reward-to-risk ratios, and reliable execution.
The Core Indicators
This strategy uses a triple filter system combining trend, momentum, and volume analysis:
- HMA (Hull Moving Average) – Period 240: Serves as the baseline trend filter. Only trades in the direction of the trend.
- CCI (Commodity Channel Index) – Period 8: Acts as the momentum confirmation tool, ensuring entry happens at a surge in price action.
- Choppiness Index – Period 16, Threshold < 60: Filters out low-volume, sideways markets. Only enters when the market is “in motion.”
- ATR (Average True Range) – Period 14: Used for position sizing and setting stop loss and take profit levels.
Entry Rules
Trades are placed once per day, only at the beginning of the daily candle and only when all conditions are met.
For Long Trades:
- Price is above the HMA 240.
- CCI 8 crosses above +100.
- Choppiness Index is below 60.
For Short Trades:
- Price is below the HMA 240.
- CCI 8 crosses below -100.
- Choppiness Index is below 60.
Money Management & Risk Control
- Risk per trade: Tested with 2%, but recommended at 0.5% to 1% for prop firm compatibility.
- Stop Loss: 1.5 x ATR(14)
- Take Profit: 3 x ATR(14)
- Risk-to-Reward Ratio: 1:2
This money management setup ensures consistency and aligns with most prop firm rules where drawdown control is critical.
Testing Methodology
The strategy was initially built and optimized in MT4, then adapted for broader platforms including Match-Trader. Optimization covered 2020–2025 using:
- Initial Optimization: Conducted across 8 commonly traded currency pairs.
- Full Backtest: Expanded to 28 forex pairs, yielding robust insights.
- Top 21 Pair Selection: Refined the basket by removing low-performing pairs (Profit Factor < 0.9 or Win Rate < 33.33%).
This two-phase testing ensured that both broad market exposure and filtering for reliability were considered.
Backtest Results Snapshot
Full 28-Pair Backtest (2020-2025)
- Total Trades: 1,127
- Profit: $12,564.55 (non-compounded)
- Win Rate: 38.6%
- Profit Factor: 1.55
- Max Drawdown: 8.98%
Refined 21-Pair Backtest (Excluding Worst 7 Pairs)
- Total Trades: 851
- Profit: $16,108.47 (non-compounded)
- Win Rate: 41.32%
- Profit Factor: 1.84
- Max Drawdown: 6.31%
Performance Comparison Table
| Metric | 28 Pairs | 21 Pairs (Filtered) |
|---|---|---|
| Total Trades | 1,127 | 851 |
| Total Profit | $12,564.55 | $16,108.47 |
| Win Rate | 38.6% | 41.32% |
| Profit Factor | 1.55 | 1.84 |
| Max Drawdown | 8.98% | 6.31% |
Removing underperforming pairs resulted in a +28% profit increase, lower drawdown, and improved consistency—an essential factor for passing strict prop firm rules.
Key Takeaways for Aspiring Prop Traders
- Simplicity Wins: This system uses only 3 main indicators and 1 risk tool—ideal for platforms with limited indicator libraries.
- Daily Entries Only: Reduces emotional trading and slippage issues.
- Adaptable Platform Use: Designed in MT4 but usable on Match-Trader, MT5, or TradingView.
- Refinement Matters: Filtering out 7 underperforming pairs drastically improved performance.
- Risk Management is Paramount: Aim for 0.5–1% risk per trade in prop firm environments.
This strategy offers a strong starting point for traders looking to tackle prop firm challenges with confidence and discipline. While no system guarantees success, the HMA-CCI Chopper Strategy is built on data, logic, and practical trading conditions—ready for real-world testing and personal refinement.
