Previous Candle Breakdown 3
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 breakout strategy based on the previous bar's range.
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
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 strategy concept is based on the breakout of the previous candle's price range, assuming that breaking the previous candle's high or low signals trend continuation. Entry conditions: buy when the current price breaks above the previous candle's high, sell when it breaks below the previous candle's low. Exit conditions typically rely on fixed take-profit and stop-loss levels or closing on a reverse signal. Position sizing may use fixed lots or dynamic lots based on account balance percentage. Money management without reasonable stop-loss ratios or maximum position limits could lead to significant losses during volatile market conditions. The overall strategy logic is simple and straightforward, but lacks filtering conditions and trend confirmation mechanisms, making it prone to frequent false breakouts in ranging markets leading to consecutive losses.
Strengths
- Simple and clear strategy logic, easy to understand and verify
- Breakout strategies perform well in trending markets, capable of capturing large moves
- Based on previous candle high/low breakout, no additional indicators needed, reducing parameter optimization complexity
Weaknesses
- Lacks trend filtering mechanism, prone to numerous false breakout signals in ranging markets
- No new bar check mentioned, may repeatedly open positions within the same candle
- Strategy is overly simplistic, not considering market environment factors like volatility or volume
Possible improvements
- Add trend filtering indicators (e.g., MA direction or ADX) to reduce false breakouts in ranging markets
- Add new bar check logic to ensure only one entry per candle
- Introduce ATR-based dynamic stop-loss and take-profit for adaptive adjustment based on market volatility
Risk assessment
Overall risk: Caution
- No new bar check may lead to repeated position opening within the same candle, increasing risk exposure
- Lacks ranging market filter, may result in consecutive stop-losses during consolidation periods
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 | EA magic number for distinguishing orders |
Timeframe | H1 | Trading timeframe |
Similar Breakout EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.