Explosion
Explosion is a breakout EA that identifies sudden volatility expansion (explosive price moves) and enters trades in the direction of the momentum surge. It uses a combination of volatility filters and momentum indicators to detect high-probability breakout opportunities, entering when price action exceeds dynamic thresholds. The EA employs fixed or dynamic stop-loss and take-profit levels to manage risk on each trade.
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 core strategy concept is to capture explosive volatility expansion breakouts, similar to Bollinger Band squeeze breakouts. Entry conditions are based on price breaking through dynamically calculated channels or volatility thresholds, confirmed by momentum indicators for direction. Exit conditions include fixed-pip stop-loss and take-profit, trailing stops, or indicator reversal signals. Position sizing supports fixed lot trading, with some versions potentially including dynamic lot calculation based on account balance. Money management has clearly defined stop-losses but lacks protection mechanisms for maximum drawdown or consecutive losses. The strategy performs well during trend initiation phases but is prone to frequent false signals and consecutive losses in ranging markets.
Strengths
- Clear breakout logic capturing volatility expansion with favorable risk-reward ratios during trend initiation
- Well-defined stop-loss and take-profit settings provide controlled risk per trade
- Flexible parameterized design allows traders to adjust explosion thresholds and volatility periods for different instruments and market conditions
- Trailing stop feature helps lock in floating profits and prevents giving back gains
Weaknesses
- Prone to frequent false breakout signals in ranging/consolidating markets, leading to repeated stop-loss hits
- Lacks maximum drawdown control and consecutive loss protection, posing significant risk during extreme market conditions
- No spread filter or trading session filter, entering during high-spread periods may reduce win rate
- Fixed lot sizing does not adapt to account equity changes, hindering long-term compounding growth
Possible improvements
- Add ranging market identification filters (such as ADX or Bollinger Band width) to reduce trade frequency during low-volatility consolidation periods
- Implement risk-based dynamic position sizing and maximum drawdown protection mechanisms to improve capital management safety
Risk assessment
Overall risk: Medium
- Breakout strategy prone to consecutive false signals causing repeated stop-losses in ranging markets
- No maximum drawdown protection or consecutive loss limiting mechanism
- No spread or trading session filter, potentially entering during unfavorable periods
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
LotSize | 0.1 | Fixed lot size per trade |
StopLoss | 300 | Auto stop loss in points |
TakeProfit | 600 | Auto take profit in points |
TrailingStop | 100 | Enable trailing stop function |
VolatilityPeriod | 20 | Volatility calculation period |
ExplosionThreshold | 2.0 | Breakout threshold multiplier |
MagicNumber | 25009 | EA magic number; 0 monitors all orders |
Timeframe | H1 | Trading timeframe |
Similar Breakout EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.