EA-1363 · Breakout

Exp_CorrectedAverage

This EA implements a breakout trading system based on the CorrectedAverage custom moving average indicator. It enters long when price breaks above the moving average by a specified level, and enters short when price breaks below. Positions are managed with fixed stop loss and take profit levels, with optional permissions for buy/sell entry and exit.

Open the interactive view (equity curve, symbol switch)

Key facts

CategoryBreakout
RiskMedium
Rating★★★☆☆
TypeTrading EA
TimeframesH1, H4, D1
IndicatorsCorrectedAverage
AuthorCopyright © 2012, Nikolay Kositsin

Backtest results (H1, about 1 year)

Not backtested yet — this EA could not be converted automatically.

Strategy analysis

This EA implements a breakout strategy based on the CorrectedAverage custom moving average indicator. The core concept is to confirm a trend initiation when price deviates from the moving average by a specified breakthrough level (Level points) and enter accordingly. Entry conditions: a buy signal triggers when the current bar's close exceeds the indicator value plus the breakthrough level, with the previous bar's close at or below that threshold to confirm a fresh breakout rather than a continued deviation; sell conditions are symmetrical. Exit conditions include fixed stop loss and take profit levels in points, plus counter-signal exits — a buy signal closes short positions if permitted, and a sell signal closes long positions if permitted. Position sizing is controlled by the MM parameter: negative values represent fixed lot sizes, while positive values represent a share of the deposit. Money management relies on the TradeAlgorithms.mqh library functions for execution. The strategy only checks for signals on new bar formation (unless SignalBar=0), preventing duplicate trades, and uses a Recount mechanism to retry data fetching on failure.

Strengths

  • Clear strategy logic based on moving average breakout — simple, effective, easy to understand and optimize
  • Independent buy/sell entry and exit permission controls provide high flexibility to adapt to different market views
  • New bar detection mechanism prevents duplicate trades within the same bar, reducing overtrading risk
  • Complete stop loss and take profit parameters combined with counter-signal exits provide multiple exit protections
  • Recount mechanism ensures signals are not lost on data fetch failures, enhancing data reliability

Weaknesses

  • Lacks dynamic stop loss/take profit adjustment — fixed-point stops may be inflexible when volatility changes
  • No trading session or market volatility filter, potentially generating unfavorable trades during low liquidity or high volatility periods
  • No spread filter, so on high-spread instruments the breakout signal may be consumed by the spread
  • The MM parameter's dual meaning (negative=lot, positive=share) is unintuitive and prone to user misconfiguration
  • Depends on the external custom CorrectedAverage indicator and TradeAlgorithms.mqh library, reducing independence and requiring these dependencies at deployment

Possible improvements

  • Add ATR-based or volatility-adaptive stop loss/take profit instead of fixed points, enabling dynamic risk management that adjusts to market volatility
  • Add spread filter and trading session filter to avoid entries during high spread or low liquidity periods
  • Add a trailing stop feature to lock in floating profits when the trend continues

Risk assessment

Overall risk: Medium

  • Fixed stop loss/take profit does not adapt to market volatility changes — stops may be too tight or targets too wide during volatile moves
  • No spread filter means breakout signals may be invalid in high-spread environments
  • The MM parameter's negative=lot logic is prone to misoperation — accidentally setting a positive value could result in oversized positions

Evaluation scores

Code quality3.0
Strategy logic3.0
Risk management3.0
Robustness3.0
Innovation2.0
Documentation2.0
Overall2.7

Parameters

ParameterDefaultDescription
MM-0.1Money management ratio or fixed lot
StopLoss_1000Stop loss (points)
TakeProfit_2000Take profit (points)
Deviation_10Maximum allowed slippage
BuyPosOpentrueOpen long on bullish divergence signal
SellPosOpentrueOpen short on bearish divergence signal
BuyPosClosetrueClose long on bearish divergence signal
SellPosClosetrueClose short on bullish divergence signal
InpInd_TimeframePERIOD_H4Indicator timeframe
MA_MethodMODE_SMAMA averaging method (SMA/EMA/SMMA/LWMA)
Length12MA smoothing depth/period
Applied_pricePRICE_CLOSEPrice type applied to indicator
Level300Breakout level (points)
SignalBar1Bar index for entry signal

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Backtests are historical simulations and do not guarantee future results. Not financial advice.

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