SupportResistTrade
This EA identifies support and resistance levels and trades breakouts from those levels. It enters buy positions when price breaks above resistance and sell positions when price breaks below support. The system includes configurable parameters for level detection sensitivity, stop loss, and take profit settings.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
Not backtested yet — this EA could not be converted automatically.
Strategy analysis
The core strategy of this EA is based on trading breakouts from identified support and resistance levels. Entry conditions: a buy position is opened when price breaks above a detected resistance level, and a sell position is opened when price breaks below a detected support level. The support and resistance identification relies on a historical price extremum detection algorithm, with configurable parameters controlling detection sensitivity and lookback period. Exit conditions include fixed stop loss and take profit settings, where stop loss is placed on the opposite side of the support/resistance level to manage risk. Position sizing uses a fixed lot size approach, though some variants may include dynamic lot calculation based on account balance. Money management relies on stop loss to control per-trade risk exposure, but lacks overall account risk controls such as maximum drawdown limits or position reduction rules after consecutive losses. The strategy may suffer from frequent false breakouts in ranging markets leading to consecutive stop losses, while performing better in strongly trending markets.
Strengths
- Support/resistance breakout is a classic and logically clear trend trading strategy that performs well in trending markets
- Strategy concept is easy to understand with relatively few parameters, suitable for beginners to use and adjust
- Stop loss and take profit mechanisms are in place, keeping per-trade risk controllable
Weaknesses
- Prone to false breakouts in ranging markets, leading to frequent stop losses and consecutive losses
- Lacks a trend filter mechanism, does not combine higher timeframe trend judgment to filter trade signals
- Missing money management module such as maximum drawdown limits, consecutive loss protection, or dynamic position sizing
- Support/resistance identification method is relatively simple, without considering volume confirmation or multiple test validation
Possible improvements
- Add multi-timeframe trend filtering, only entering trades when aligned with higher timeframe trend direction to reduce false breakout losses
- Implement ATR-based dynamic stop loss and take profit instead of fixed pip values, adapting risk management to market volatility changes
- Add a money management module including maximum drawdown limits and position reduction rules after consecutive losses
Risk assessment
Overall risk: Medium
- High risk of consecutive stop losses from false breakouts in ranging markets
- Missing account-level risk controls such as maximum drawdown limits
- Fixed stop loss may be insufficient to cover market noise during high volatility periods
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
Lots | 0.1 | Fixed trading lot size |
StopLoss | 50 | Stop loss in points, limits max loss per trade |
TakeProfit | 100 | Take profit in points, locks profit target per trade |
SupportPeriod | 20 | Support level detection lookback period |
ResistancePeriod | 20 | Resistance level detection lookback period |
MagicNumber | 12345 | Magic number for closing, 0 for all positions |
Slippage | 3 | Maximum allowed slippage |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.