N-_Candles_v7
This EA trades based on candlestick pattern recognition, identifying specific candle formations (such as engulfing, doji, hammer, etc.) to generate entry signals. It analyzes candle body and wick ratios to classify patterns and executes trades with configurable lot sizing and stop loss/take profit levels. The EA operates systematically by scanning for patterns on each new bar and entering positions when qualifying formations are detected.
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 strategy concept is rooted in classical candlestick pattern recognition, analyzing geometric features such as candle body size, upper and lower shadow ratios to identify market reversal or continuation signals. Entry conditions depend on detecting specific pattern combinations like bullish/bearish engulfing, morning/evening star, hammer/hanging man, typically confirmed by the trend direction of preceding candles. Exit conditions use fixed stop loss and take profit settings, with stop loss placed beyond the pattern extreme and take profit based on risk-reward ratio. Position sizing employs either fixed lots or balance-proportional lot calculation, allowing user customization of trade volume. Money management provides maximum position limits and balance protection mechanisms, but overall risk control depends on parameter configuration reasonableness, lacking dynamic position adjustment mechanisms.
Strengths
- Based on classical technical analysis theory, candlestick patterns have wide market recognition and practical validation
- Strategy logic is intuitive and easy to understand, with strong parameter configurability for different market conditions
- Entry signals have clearly defined pattern feature criteria, avoiding ambiguous subjective judgment
- Supports multi-pattern combination recognition, improving signal quality and trading opportunities
- Fixed stop loss and take profit settings make risk quantifiable per trade
Weaknesses
- Candlestick patterns easily produce false signals in ranging markets, leading to frequent stop losses
- Lacks trend filter, may frequently open positions against the trend
- Fixed stop loss and take profit does not account for market volatility changes, poor adaptability across market conditions
- Pattern recognition relies on static ratio thresholds, unable to adapt to volatility characteristics of different instruments and timeframes
- Missing position scaling logic, unable to optimize average entry price
Possible improvements
- Add trend filter (e.g., moving average direction or ADX), only trade patterns in the direction of the prevailing trend
- Introduce ATR-based dynamic stop loss and take profit, automatically adjusting risk parameters based on market volatility
- Add multi-timeframe confirmation mechanism, entering when higher timeframe trend aligns with lower timeframe pattern signals
Risk assessment
Overall risk: Medium
- Fixed stop loss does not adapt to volatility changes, potentially too wide in low volatility or too narrow in high volatility
- Lack of trend filter creates counter-trend trading risk
- Candlestick patterns have high false signal rate in ranging markets
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
LotSize | 0.1 | Fixed trading lot size |
StopLoss | 50 | Stop loss in points |
TakeProfit | 100 | Take profit in points |
MagicNumber | 12345 | Magic number identifier for EA orders |
MaxPositions | 1 | Maximum simultaneous positions allowed |
CandleBodyRatio | 0.5 | Candle body ratio threshold for pattern recognition |
ShadowRatio | 0.6 | Shadow ratio threshold for pattern recognition |
Timeframe | H1 | Timeframe for channel calculation |
Similar Candlestick Pattern EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.