Return Strategy
This EA implements a mean reversion strategy that enters trades when price deviates significantly from a central moving average or equilibrium level, expecting a return to the mean. It identifies overextended market conditions and places counter-trend trades with defined take-profit targets at or near the mean. The strategy includes basic risk management with stop-loss and lot sizing controls.
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 the mean reversion principle, assuming that price will return to the mean after deviating from it. Entry conditions typically involve price reaching Bollinger Band outer bands or deviating beyond a set threshold multiple from the moving average, then opening a counter-trend position. Exit conditions include take-profit when price returns to the mean line, and stop-loss placed further out as protection. Position sizing uses either fixed lots or equity-proportional lot calculation. Money management includes maximum position limits and per-trade risk controls. The overall strategy performs well in ranging markets but may incur consecutive losses during trending conditions.
Strengths
- Mean reversion logic has good win rate in ranging markets
- Stop-loss protection keeps per-trade risk controlled
- Adjustable parameters adapt to different instruments and timeframes
- Relatively smaller drawdown than trend strategies during choppy periods
- Clear strategy concept, easy to understand and optimize
Weaknesses
- May incur consecutive counter-trend losses during trending markets
- Mean reversion assumption does not always hold true
- Lack of trend filter may cause unnecessary counter-trend entries
- Insufficient ranging confirmation may enter at trend onset
- Fixed parameters struggle to adapt to market regime changes
Possible improvements
- Add trend filter indicator like ADX to avoid counter-trend entries in strong trends
- Implement adaptive parameter mechanism to dynamically adjust deviation thresholds and stop-loss distances based on volatility
- Add multi-timeframe confirmation to improve entry signal reliability
Risk assessment
Overall risk: Medium
- Lack of trend state identification may cause consecutive counter-trend losses in strong trends
- Mean reversion strategy may face significant drawdown during extreme market conditions
- No new bar check may cause repeated entries on the same signal
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 |
MAPeriod | 20 | Moving average period |
Deviation | 2.0 | Opening deviation multiplier |
MagicNumber | 12345 | EA magic number; 0 manages all positions |
MaxPositions | 1 | Maximum simultaneous positions |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.