EA_PotentialEntriesCommercial
This EA identifies candlestick reversal patterns (Hammer, Inverted Hammer, Shooting Star, Hanging Man) and momentum continuation patterns on each new bar, then opens market orders with stop-loss levels based on the pattern's extremes. It operates in two modes: bullish trend (buy signals) and bearish trend (sell signals), using only the two most recent candles for pattern detection.
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 classic candlestick reversal pattern recognition, analyzing the proportional relationships between body, upper wick, and lower wick of the two most recent candles to identify potential entry points. Entry conditions are divided into bullish and bearish groups: the bullish group includes Bullish Hammer (body less than half the lower wick, lower wick more than 3x upper wick), Bullish Inverted Hammer (body less than half the upper wick, upper wick more than 3x lower wick), and Bullish Momentum Continuation (two consecutive bullish candles with current body at least 2x previous body and current range larger than previous). The bearish group mirrors the logic with Shooting Star, Hanging Man, and Bearish Momentum patterns. Exit conditions only set stop-loss levels (long SL at the minimum low of the two candles, short SL at the maximum high), with no take-profit targets, relying solely on stop-loss for trade closure. Position sizing uses only a fixed lot size input parameter dVol, with no dynamic position adjustment or money management logic whatsoever. Money management is completely absent—there is no account balance percentage calculation, risk percentage control, or maximum drawdown limit; the lot size is entirely manually specified by the user.
Strengths
- Clear strategy logic based on classic candlestick pattern theory, easy to understand and verify
- Each pattern sets a stop-loss based on the pattern's price extremes, providing basic risk protection
- New bar detection mechanism prevents duplicate entries within the same bar, reducing overtrading risk
Weaknesses
- No take-profit target at all, profitable trades can only close via stop-loss trigger or manual intervention
- No check for existing positions in the same direction, may repeatedly open positions leading to overexposure
- Candlestick pattern recognition conditions are overly simplistic with no confirmation mechanism (volume, trend context, support/resistance), generating many false signals
- No slippage control or spread filter, may execute at very poor prices in low-liquidity markets
- Uses MQL4 compatibility functions (iTimeMQL4, ObjectCreateMQL4, etc.), poor code portability and potential compatibility issues
Possible improvements
- Add take-profit target settings and trailing stop functionality for reasonable exit mechanisms on profitable trades
- Add position check logic to avoid duplicate entries in the same direction, and implement maximum position limits
- Add multi-timeframe confirmation (e.g., only enter when higher timeframe trend aligns) and support/resistance filtering to reduce false signals
- Implement dynamic position sizing based on account risk percentage instead of fixed lot size input
- Add spread filter, trading session filter, and maximum drawdown protection as risk control modules
Risk assessment
Overall risk: Caution
- No take-profit mechanism, profitable trades cannot automatically realize gains and may turn from profit to loss
- No position check, same-direction repeated entries may stack positions leading to excessive exposure
- Fixed lot size with no money management, small accounts may overleverage while large accounts may be underutilized
- No confirmation mechanism for candlestick patterns, frequent false signals in ranging markets may cause consecutive losses
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
PA_TYPE | none (no default specified) | Trend type: 1=Bullish (buy), 2=Bearish (sell) |
dVol | none (no default specified) | Fixed lot size, manual input required |
Similar Candlestick Pattern EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.