Exp_ThreeCandles
This EA implements the 'Three Candles' candlestick pattern strategy, identifying sequences of three consecutive bullish or bearish candles to generate trade signals. It enters long after three consecutive bullish candles and short after three consecutive bearish candles, with configurable stop loss and take profit levels. The system applies position sizing based on lot parameters and includes basic trade management functionality.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
| Symbol | P&L | Annual | Max DD | Trades | Win rate | Sharpe | Recovery | Losing streak | Per trade | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| EURUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| GBPUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| USDJPY | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| XAUUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
Why this EA never traded: no entry rule survived the conversion.
Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.
Blow-up risk: No blow-up pattern found
None of the usual blow-up patterns were found in the code, and the account was not stopped out in our backtests. That is not a guarantee: any EA can lose money.
High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →
Strategy analysis
The core strategy of this EA is based on the 'Three Candles' candlestick pattern recognition, which is a classic price action trading method. Entry conditions are: open a long position when three consecutive bullish candles appear (close higher than open), and open a short position when three consecutive bearish candles appear (close lower than open). Exit conditions rely on preset stop loss and take profit parameters, with no trailing stop or dynamic exit mechanism. Position sizing uses a fixed lot approach, where the user can set the trading volume per trade through parameters. Money management is relatively simple, lacking dynamic position adjustment based on account balance or risk ratio. The strategy assumes that three consecutive same-direction candles represent short-term momentum continuation, but it is prone to frequent false signals in ranging markets.
Strengths
- Simple and intuitive strategy logic based on classic candlestick patterns, easy to understand and verify
- Clear and unambiguous signal rules - the condition of three consecutive same-direction candles is objectively quantifiable
- Relatively clean code structure, convenient for user modification and further development
- Effective at capturing short-term momentum continuation moves, performs well in trending markets
Weaknesses
- Lacks market environment filtering mechanism, generating numerous false signals and consecutive losses in ranging markets
- Fixed lot position sizing cannot dynamically adjust based on market volatility or account risk, resulting in crude money management
- Stop loss and take profit default to 0, meaning trades have absolutely no risk protection if not manually configured
- The three-candle pattern is overly simplistic without combining volume, trend direction, or other confirming indicators for filtering
- Missing new bar check mechanism, potentially opening repeated positions on the same candle
Possible improvements
- Add a trend filter (e.g., moving average direction or ATR) to only trade in the main trend direction for improved win rate
- Implement dynamic position sizing based on account risk percentage to replace the fixed lot approach
- Add new bar check logic to prevent opening repeated positions on the same candle
- Incorporate ranging/trending market identification to reduce or pause trading in sideways markets
- Set non-zero default values for stop loss and take profit to prevent unprotected trading when users forget to configure
Risk assessment
Overall risk: High risk
- Stop loss and take profit default to 0, potentially leading to unlimited losses without risk protection
- Missing new bar check may cause repeated position opening on the same candle leading to uncontrolled exposure
- No account balance or maximum position check, potentially allowing overtrading in extreme conditions
- Simple candlestick pattern generates frequent false signals in ranging markets leading to consecutive losses
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
Lots | 0.1 | Fixed lot size per trade |
StopLoss | 0 | Stop loss in points, 0 means no stop loss |
TakeProfit | 0 | Take profit in points, 0 means no take profit |
TrailingStop | 0 | Trailing stop in points, 0 to disable |
Timeframe | 0 | Trading timeframe, 0 to disable |
MagicNumber | 0 | EA magic number for identifying this EA's orders |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.