Precipice
Precipice is a trend-following Expert Advisor that identifies directional momentum and enters trades in the direction of the prevailing trend. It uses a combination of technical indicators to confirm trend strength before opening positions and applies trailing stops to protect profits. The EA aims to capture medium-to-long-term trend moves while managing risk through position sizing and stop losses.
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 core concept of the Precipice strategy is trend following, using technical indicators to determine the prevailing market trend direction and entering trades after trend confirmation. Entry conditions typically rely on moving average alignment or price breaking through key levels to confirm trend establishment, combined with momentum indicators such as RSI or MACD to filter out false signals. Exit conditions include preset stop loss and take profit levels, as well as a trailing stop mechanism to lock in profits as the trend extends. Position sizing supports fixed lot trading, with some versions potentially including dynamic lot calculation based on account balance. Money management incorporates maximum position limits and per-trade risk controls, though specific parameters depend on user configuration. The overall strategy leans toward medium-to-long-term holding periods, performing best in clearly trending markets, while it may suffer consecutive stop losses during choppy or range-bound conditions.
Strengths
- Clear trend-following logic that performs well in trending markets
- Trailing stop mechanism protects floating profits, helping improve profit factor
- Parameterized design allows users to adjust strategy for different instruments and markets
- Entry filtered by technical indicators, reducing losses from false signals
- Supports stop loss and take profit settings with a basic risk management framework
Weaknesses
- Trend-following strategy prone to consecutive stop losses in range-bound markets with potentially large drawdowns
- Lacks market regime detection to automatically switch between trend and range modes
- Fixed parameters may perform very differently across market cycles
- No money management module such as risk percentage calculation, position sizing is relatively basic
- Missing time filters and news event filters for enhanced trade filtering
Possible improvements
- Add market regime detection module to pause trading or switch strategy mode during range-bound conditions
- Introduce dynamic position sizing based on account risk percentage instead of fixed lot size
- Add trading session filters and major news event filters to avoid opening positions during unfavorable periods
Risk assessment
Overall risk: Medium
- Trend strategy may incur consecutive stop losses leading to significant drawdown in range-bound markets
- Fixed lot sizing lacks dynamic adjustment capability based on account equity
- Missing new bar check mechanism may lead to repeated entries on the same bar
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
LotSize | 0.1 | Trade lot size per order |
StopLoss | 500 | Stop loss in points |
TakeProfit | 1000 | Overall take profit target in points |
TrailingStop | 300 | Trailing stop in points |
MagicNumber | 22889 | EA magic number for trade identification |
MaxPositions | 1 | Maximum simultaneous positions |
Timeframe | H1 | Timeframe used for trading |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.