Candle shadow percent
This EA trades based on candlestick shadow percentage patterns, identifying candles with disproportionately long upper or lower shadows relative to their body size. It generates buy signals when lower shadows dominate and sell signals when upper shadows dominate, interpreting these as potential rejection patterns and reversal signals.
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 concept is based on the percentage relationship between candlestick shadows and the body to identify price rejection zones and potential reversal points. Entry conditions are: go long when the lower shadow percentage of the total candle height exceeds a set threshold, and go short when the upper shadow percentage exceeds the threshold, representing price rejection in the shadow direction. Exit conditions typically rely on fixed take-profit and stop-loss ratios or closing when shadow percentages revert to normal levels. Position sizing uses fixed lots or account percentage-based calculation without dynamic adjustment mechanisms. Money management is relatively simple, lacking logic to adjust position size based on shadow percentage strength, and risk control mainly depends on stop-loss settings. The overall strategy logic is intuitive and easy to understand, as shadow percentages do reflect the outcome of bullish-bearish power struggles, but single-indicator judgment is susceptible to market noise interference.
Strengths
- Strategy logic is simple and intuitive; shadow percentages genuinely reflect real market bullish-bearish dynamics
- Shadow rejection patterns are a classic candlestick analysis concept with a reliable technical analysis foundation
- Few parameters make it easy to optimize and backtest without excessive overfitting risk
Weaknesses
- Single candlestick pattern judgment is susceptible to market noise and false signals, lacking multi-timeframe confirmation
- Does not consider market trend direction; counter-trend shadow signals in strong trends can lead to consecutive losses
- Lacks money management and dynamic position sizing; fixed lot trading adapts poorly across different account sizes
Possible improvements
- Add multi-timeframe trend filtering to only trade shadow signals in the direction of the main trend, avoiding counter-trend trades
- Implement progressive position sizing based on shadow percentage strength—stronger signals warrant larger positions to improve risk-reward ratio
Risk assessment
Overall risk: Medium
- Single candlestick pattern signals lack trend filtering; frequent counter-trend entries in trending markets can cause consecutive stop-losses
- No maximum drawdown control or daily loss limit; risk exposure is uncontrolled during extreme market conditions
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
ShadowPercentThreshold | 60 | Wick ratio threshold to trigger signal |
LotSize | 0.1 | Lot size per trade |
StopLoss | 500 | Stop loss in points |
TakeProfit | 1000 | Take profit in points |
MinCandleSize | 100 | Minimum candle size filter to avoid noise |
MagicNumber | 17940 | EA magic number to close (0 for all positions) |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.