EA-22477 · Breakout

Exp_Hans_Indicator_Cloud_System

This EA implements the Hans Indicator Cloud System, a session-based breakout strategy that trades based on price breaking above or below a cloud (channel) formed by the Hans indicator. It identifies trading ranges during specific time windows and enters positions when price breaks out of the established cloud boundaries.

Open the interactive view (equity curve, symbol switch)

Key facts

CategoryBreakout
RiskMedium
Blow-up riskLow
Rating★★★☆☆
TypeTrading EA
TimeframesM15, H1, H4
IndicatorsHans Indicator Cloud, Support/Resistance Levels, Session Time Range
AuthorCopyright © 2018, Nikolay Kositsin

Backtest results (H1, about 1 year)

SymbolP&LAnnualMax DDTradesWin rateSharpeRecoveryLosing streakPer tradeStatus
EURUSD0.00%0.00%0.00%0—————Not convertible yet
GBPUSD0.00%0.00%0.00%0—————Not convertible yet
USDJPY0.00%0.00%0.00%0—————Not convertible yet
XAUUSD0.00%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 Hans Indicator Cloud System strategy is based on a session breakout concept, where the core idea is to identify a price volatility range during specific trading sessions (typically Asian/European sessions) forming a cloud band. Entry conditions are going long when price breaks above the upper cloud boundary and going short when price breaks below the lower cloud boundary, representing a classic range breakout strategy. Exit conditions typically include fixed take-profit and stop-loss levels or reverse cloud penetration signals. Position sizing employs fixed lot sizes or account equity percentage-based methods. Money management has some deficiencies as there is no dynamic position adjustment or volatility-based position sizing calculation. The strategy's strength lies in its clear logic and well-defined rules, but the risk is that frequent false breakouts in ranging markets can lead to consecutive losses.

Strengths

  • Clear and simple strategy logic based on session breakout concept, easy to understand and execute
  • The cloud system provides excellent visualization, allowing traders to intuitively judge market conditions
  • Breakout strategies perform well in trending markets with reasonable risk-reward ratios
  • Session-based trading avoids low liquidity periods
  • Systematic trading rules eliminate the influence of subjective judgment

Weaknesses

  • Frequent false breakouts in ranging markets can lead to consecutive losses
  • Lacks dynamic stop-loss and volatility-based position sizing mechanisms
  • Fixed time windows may not adapt to different instruments and changing market conditions
  • Missing new bar check may cause repeated entries within the same bar
  • No spread filter, resulting in high entry costs during high-spread periods

Possible improvements

  • Add ATR-based dynamic stop-loss and take-profit mechanism to adapt to different volatility environments
  • Add spread filter and new bar check to improve entry quality and prevent repeated trades
  • Introduce volume or momentum confirmation indicators to reduce false breakout signals

Risk assessment

Overall risk: Medium

  • False breakout risk: frequent breakout signals in ranging markets lead to consecutive losses
  • Zero stop-loss setting poses unlimited loss risk
  • Missing new bar check may cause repeated position opening within the same bar, increasing risk exposure

Evaluation scores

Code quality3.0
Strategy logic3.0
Risk management2.0
Robustness2.0
Innovation3.0
Documentation2.0
Overall2.5

Parameters

ParameterDefaultDescription
Lots0.1Fixed trading lot size
StopLoss0Stop loss in points, 0 means no stop loss
TakeProfit0Take profit in points (unused; buy TP follows MA value)
TimeStart0Cloud calculation start time
TimeEnd0Cloud calculation end time
TrailingStop0Trailing stop in points
MagicNumber0EA magic number for order identification

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Backtests are historical simulations and do not guarantee future results. Not financial advice.

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