Morse code
Morse Code is a signal-based EA that generates buy and sell entries using dot-and-dash pattern logic derived from price action or indicator crossovers, analogous to Morse code signals. It systematically translates these pattern signals into market entries and exits, operating without manual intervention. The EA appears to focus on momentum-driven entries based on short-term pattern recognition.
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 | -3.72% | -3.24% | 5.42% | 94 | 47.30% | -0.92 | -0.69 | 7 | −$3.63 | Reliable |
| GBPUSD | +3.48% | +3.02% | 5.07% | 95 | 49.50% | 0.68 | 0.69 | 7 | +$3.67 | Reliable |
| USDJPY | +0.63% | +0.54% | 4.59% | 91 | 47.30% | 0.17 | 0.14 | 5 | +$0.69 | Reliable |
| XAUUSD | +42.79% | +34.22% | 58.55% | 87 | 53.50% | 0.87 | 0.73 | 7 | +$52.64 | Reliable |
Profitable on 3 of 4 markets with reliable results.
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.
Against the other Momentum EAs with a reliable result on the same market: EURUSD: better than 24% of 68 · GBPUSD: better than 85% of 66 · USDJPY: better than 65% of 68 · XAUUSD: better than 75% of 75
Month by month
| Market | Months with a gain | Best month | Worst month |
|---|---|---|---|
| EURUSD | 23% | +2.07% 2026-04 | -1.69% 2026-08 |
| GBPUSD | 62% | +2.37% 2026-04 | -2.55% 2026-10 |
| USDJPY | 46% | +3.16% 2026-04 | -1.91% 2026-03 |
| XAUUSD | 69% | +46.55% 2026-01 | -26.11% 2026-03 |
From the backtest equity curve, sampled about every two days; only reliable results.
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
Strategy concept: This EA employs a Morse code-like dot (short signal) and dash (long signal) pattern system to identify momentum shifts in the market, encoding price action or indicator changes into tradeable signal sequences. Entry conditions: Buy or sell signals are triggered when specific dot-dash combination patterns are detected, likely defined by short-term and long-term moving average crossovers or price breakouts. Exit conditions: May use fixed take-profit and stop-loss levels or close positions when a reversal signal pattern appears, depending on parameter settings. Position sizing: Lot sizes are calculated based on account balance and risk parameters, potentially supporting both fixed and dynamic lot sizing. Money management: The EA may include maximum position limits and drawdown controls, though the specific implementation depends on the parameter configuration.
Strengths
- Innovative dot-dash pattern recognition approach provides a unique perspective on market signal interpretation
- Systematic trading reduces emotional interference and strictly executes signal rules
- Pattern recognition can capture short-term momentum shifts with fast response times
Weaknesses
- The dot-dash pattern definition may be oversimplified and unable to fully reflect complex market dynamics
- Lack of volatility and spread filtering may generate false signals under unfavorable conditions
- Pattern recognition logic may frequently trigger wrong signals in ranging markets leading to consecutive losses
Possible improvements
- Add a market state filter (such as ADX or volatility indicator) to reduce trading frequency in ranging markets
- Incorporate spread filtering and slippage protection mechanisms to improve real-world execution reliability
Risk assessment
Overall risk: Medium
- Pattern recognition may generate numerous false signals in ranging markets
- Lack of explicit market state detection means the same strategy is applied in both trending and ranging conditions
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
LotSize | 0.1 | Lot size per trade |
StopLoss | 50 | Stop loss in points |
TakeProfit | 100 | Take profit in points |
SignalPeriod | 14 | signalidentifying period |
DashThreshold | 3 | Dash signal threshold |
DotThreshold | 1 | Dot signal threshold |
MagicNumber | 18066 | EA magic number to close (0 for all positions) |
MaxPositions | 1 | Maximum positions |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.