EA-18507 · Candlestick Pattern

EveningStar

This EA identifies the Evening Star candlestick pattern, a bearish reversal formation consisting of a large bullish candle, a small-bodied candle, and a large bearish candle. It automatically enters short positions when the pattern is detected and manages exits via stop loss and take profit levels. The strategy targets trend reversals at market tops after sustained uptrends.

Open the interactive view (equity curve, symbol switch)

Key facts

RiskMedium
Blow-up riskLow
Rating★★☆☆☆
TypeTrading EA
TimeframesH1, H4, D1
IndicatorsCandlestick Pattern
AuthorCopyright © 2017, Vladimir Karputov

Backtest results (H1, about 1 year)

SymbolP&LAnnualMax DDTradesWin rateSharpeRecoveryLosing streakPer tradeStatus
EURUSD0.00%0.00%0.00%0—————Not convertible yet
GBPUSD0.00%0.00%0.00%0—————Not convertible yet
USDJPY0.00%0.00%0.00%0—————Not convertible yet
XAUUSD0.00%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

  • Has no stop loss or trailing stop

On its own this is not a typical blow-up pattern, 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

This EA trades based on the classic Evening Star candlestick reversal pattern. The entry condition requires identification of the complete three-candle Evening Star formation: a strong bullish candle, followed by a small-bodied star candle, and then a strong bearish candle closing deep into the first candle's body. The EA opens a short position immediately upon pattern confirmation, aligning with the bearish signal. Exit conditions rely on preset fixed stop loss and take profit parameters, with the stop loss placed above the pattern high and take profit set according to a risk-reward ratio. Position sizing uses a fixed lot approach without dynamic lot calculation or money management algorithms. The overall strategy logic is clear but basic, lacking trend context filtering, volume confirmation, and dynamic position sizing mechanisms.

Strengths

  • Strategy based on a classic candlestick pattern with intuitive logic that traders can easily understand and verify
  • Evening Star is a well-validated high-probability reversal signal with good win rates in appropriate market conditions
  • Parameterized design allows users to adjust pattern recognition strictness and risk management settings

Weaknesses

  • Lacks trend context filtering, potentially generating repeated short signals in an existing downtrend leading to pyramiding
  • Fixed lot position sizing ignores account equity and volatility, making risk control inflexible
  • No maximum position limit or consecutive loss protection mechanism, which could cause significant losses in extreme market conditions

Possible improvements

  • Add a trend filter (such as moving average direction or ADX indicator) to identify Evening Star patterns only at the end of uptrends, improving signal quality
  • Implement ATR-based dynamic stop loss/take profit and a money management module that calculates position size as a percentage of account equity

Risk assessment

Overall risk: Medium

  • Fixed lot sizing creates inconsistent risk exposure across different account sizes, potentially over-leveraging small accounts
  • No maximum position or drawdown protection mechanism; consecutive pattern signals may lead to overly concentrated exposure
  • Spread and slippage impact on short-term reversal trades not accounted for, causing potential discrepancy between backtest and live execution

Evaluation scores

Code quality3.0
Strategy logic3.0
Risk management2.0
Robustness2.0
Innovation2.0
Documentation2.0
Overall2.3

Parameters

ParameterDefaultDescription
LotSize0.1Fixed lot size per trade
StopLoss50Stop loss in points
TakeProfit100Take profit in points
StarBodyRatio0.3Max star candle body ratio to first candle body
ThirdCandlePenetration0.5Min penetration ratio of third bearish candle into first bullish body
MagicNumber18507EA magic number for order identification

Similar Candlestick Pattern EAs

Backtests are historical simulations and do not guarantee future results. Not financial advice.

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