Previous Candle Breakdown
This EA trades breakouts of the previous candle's high and low. When price breaks above the previous candle's high, it opens a buy; when price breaks below the previous candle's low, it opens a sell. It is a simple structural breakout system that relies on momentum continuation after a range expansion.
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
- 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
The strategy concept is based on structural breakout of the previous candle, assuming that price continuation follows a breach of the prior candle's extremes. Entry conditions: buy when current price breaks above the previous completed candle's high, sell when current price breaks below the previous completed candle's low. Exit conditions likely include fixed take-profit and stop-loss levels, or possibly ATR-based dynamic stops. Position sizing may use fixed lots or account-balance-proportional sizing. Money management is moderately controlled if no martingale or grid is employed, but consecutive false breakouts in ranging markets can cause drawdowns. The strategy performs best in trending markets but suffers from frequent whipsaws during consolidation periods.
Strengths
- Simple and clear logic, easy to understand and verify
- No complex indicators needed, reducing overfitting risk
- Captures breakout opportunities promptly in trending markets
- Well-defined entry rules without subjective judgment
- Applicable across multiple timeframes
Weaknesses
- Frequent false breakouts in ranging markets lead to losses
- Lacks trend filter, prone to repeated entries during consolidation
- Fixed stop-loss/take-profit may not suit varying market volatility
- Does not account for trading session and liquidity differences
- Lack of position management may lead to overtrading
Possible improvements
- Add a trend filter (e.g., MA direction or ATR threshold) to filter false breakouts
- Add trading session filter to avoid low-liquidity periods
- Use ATR-based dynamic stop-loss/take-profit to adapt to market volatility
- Add maximum consecutive loss limit and cooldown period
- Add position sizing module based on account risk percentage
Risk assessment
Overall risk: Medium
- Lacks trend filter leading to frequent losses in ranging markets
- May lack new bar check causing repeated entries on same breakout
- Fixed stop-loss may not adapt to current market volatility
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
LotSize | 0.1 | Initial lot size, martingale base quantity |
StopLoss | 0 | Stop loss in points, max loss per trade |
TakeProfit | 0 | Group TP in points, close all at this profit |
MagicNumber | 12345 | EA magic number to distinguish trade instances |
CandleOffset | 1 | Nth previous bar as breakout reference |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.