Exp_Stopreversal
This EA implements a stop-reversal strategy that reverses position direction when price hits a stop level, effectively turning every stop-loss into a new entry signal in the opposite direction. It operates as a systematic mean-reversion system that continuously stays in the market, alternating between long and short positions based on price reaching predefined reversal thresholds.
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 | -0.74% | -0.64% | 4.81% | 124 | 50.40% | — | — | — | — | Same as other EAs |
| GBPUSD | -0.67% | -0.58% | 6.45% | 125 | 48.40% | — | — | — | — | Same as other EAs |
| USDJPY | -1.85% | -1.61% | 6.64% | 126 | 49.60% | — | — | — | — | Same as other EAs |
| XAUUSD | +62.03% | +49.00% | 37.53% | 123 | 50.80% | — | — | — | — | Same as other EAs |
On every market this backtest is identical to EA-17794. The automatic conversion almost certainly lost what makes this EA different (a custom indicator, a filter or the money management), so these results are not ranked or counted.
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 stop-reversal strategy's core concept is that when the current position is stopped out, a new position is immediately opened in the opposite direction, effectively converting each stop-loss into a reversal entry signal. Entry conditions are straightforward: when a long position is stopped out, a short is immediately opened, and vice versa, ensuring the EA is always in the market. Exit conditions rely solely on stop-loss triggers with no independent take-profit logic, meaning profitability depends entirely on price moving favorably enough before the next reversal. Position sizing typically uses fixed lots or balance-proportional sizing without dynamic adjustment based on market volatility or ATR. Money management is notably lacking as the strategy maintains continuous exposure and generates a new trade on every reversal, creating significant cumulative loss risk during trending markets where consecutive stop-outs and reversals erode capital rapidly. The strategy performs reasonably well in ranging or choppy markets but suffers significant drawdowns in strong trending conditions, which is characteristic of mean-reversion systems.
Strengths
- Strategy logic is simple and clear, easy to understand and implement
- Can capture profits from repetitive price swings in ranging markets
- Always-in-market approach ensures continuous market participation without missing moves
Weaknesses
- Suffers severe consecutive losses from repeated stop-and-reverse cycles in strong trending markets
- Lacks trend filtering mechanism to identify whether current market conditions suit the strategy
- No maximum consecutive loss limit or overall drawdown control, posing high capital safety risk
Possible improvements
- Add a trend filter (e.g., moving average direction or ADX indicator) to pause reversal trading or adjust stop distances during strong trends
- Introduce maximum consecutive loss limits and overall drawdown protection that halts trading when thresholds are reached
Risk assessment
Overall risk: High risk
- Always-in-position with continuous reversal mechanism creates cascading losses during trending markets
- Missing trend identification and trading pause mechanism provides no self-protection in unfavorable conditions
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
Lots | 0.1 | Fixed trading lot size |
StopLoss | 50 | Stop loss in points |
TakeProfit | 0 | Take profit in points, 0 means no take profit |
TrailingStop | 0 | Trailing stop in points, 0 to disable |
MagicNumber | 12345 | 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.