InverseReaction_EA (IREA)
IREA (Inverse Reaction EA) trades the idea that unusual price impulses will be corrected by an inverse reaction. It uses a custom InverseReaction indicator to detect bars whose absolute change exceeds a confidence threshold, then opens a counter-direction trade expecting mean reversion. Entries are filtered by minimum and maximum bar size criteria, and each trade has a fixed stop loss and take profit.
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
IREA's strategy concept is mean reversion: when price exhibits an unusually large impulse move, the market is expected to produce an inverse corrective reaction. Entry conditions are generated by a custom InverseReaction indicator — a signal is valid when the absolute bar change (IRC) exceeds the confidence level (IRL) and falls between MinCriteria and MaxCriteria. The specific logic requires the first bar (sign[0]) to satisfy the condition while both bars must not simultaneously satisfy it (avoiding consecutive anomalies), and a negative IRC triggers a buy while a positive IRC triggers a sell, trading against the impulse direction. Exit conditions rely on fixed stop loss (1000 points) and take profit (250 points), with the TP being much smaller than the SL, meaning the strategy depends on a high win rate to compensate for the unfavorable risk-reward ratio. Position sizing uses a fixed lot size (TrVol=1.0) with no dynamic position adjustment or money management logic. Money management is completely absent — there is no drawdown control, no maximum position limit, and no percentage-of-equity sizing mechanism.
Strengths
- Clear and concise strategy logic based on the well-established mean reversion concept
- Dual filtering by minimum and maximum bar size prevents entries during extreme moves and insignificant fluctuations
- Trades only on new bars and when no positions are open, avoiding repeated entries and overtrading
- Custom indicator confidence threshold based on the golden ratio (1.618) provides a statistical basis for signals
Weaknesses
- Extremely poor risk-reward ratio (TP 250 vs SL 1000, 1:4 ratio), requiring over 80% win rate to be profitable
- Fixed lot sizing with no money management, unable to dynamically adjust position based on account size and risk
- No drawdown control mechanism — the EA will continue trading through consecutive losses without stopping
- Stop loss of 1000 points is excessively large, a single loss could represent a significant portion of the account
- Depends on a custom InverseReaction indicator; the EA cannot function if the indicator is missing
Possible improvements
- Add dynamic position sizing based on account equity percentage or ATR-based calculation
- Improve risk-reward ratio by tightening the stop loss or implementing trailing stops / partial profit taking
- Add maximum drawdown limit and maximum consecutive loss count to protect account capital
- Add spread filtering to avoid entries during high-spread periods that erode the narrow profit margins of mean reversion
Risk assessment
Overall risk: Medium
- 1:4 risk-reward ratio is highly unfavorable, requiring an unrealistically high win rate for long-term profitability
- Fixed lot sizing with no money management means uncontrolled risk exposure with larger accounts
- 1000-point stop loss may still be insufficient during extreme moves, resulting in massive single-trade losses
- No maximum position or drawdown limits provide no protection during consecutive losing streaks
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
StopLoss | 1000 | Stop-loss in points |
TakeProfit | 250 | Take-profit in points |
TrVol | 1.0 | Trading lot size |
Slipagge | 3 | Acceptable slippage |
MinCriteria | 300 | Minimum candle size for signal |
MaxCriteria | 2000 | Maximum candle size for signal |
Coefficient | 1.618 | Confidence coefficient (golden ratio) |
MaPeriod | 3 | Moving average period |
Similar Mean Reversion EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.