Simple Three Inside Pattern EA
This EA trades the Three Inside candlestick pattern (a harami continuation/reversal pattern) by detecting the formation of a three-inside bar structure and opening positions accordingly. It is a straightforward pattern-recognition EA with minimal filtering, relying primarily on the pure candlestick pattern for entry signals.
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 classic Three Inside candlestick pattern (harami pattern), where the first bar is a long-body candle, the second bar is a short-body candle fully contained within the first (harami), and the third bar confirms the direction. Entry conditions trigger a buy when a bullish three-inside pattern is detected and a sell when a bearish three-inside pattern is detected, without any technical indicator filters for additional confirmation. Exit conditions likely rely on fixed take-profit and stop-loss levels or the appearance of a reverse pattern, but the strategy appears simplistic based on the naming convention and may lack sophisticated exit logic. Position sizing uses a fixed lot size or simple calculation, without dynamic adjustment based on account volatility or ATR. Money management is basic with no martingale or grid mechanisms, but also lacks strict controls on maximum positions, maximum drawdown, or other risk parameters. Overall the strategy logic is clear but overly one-dimensional, lacking multi-factor confirmation and risk buffering mechanisms.
Strengths
- Strategy logic is simple and clear, based on a classic candlestick pattern, easy to understand and verify
- Pure price action trading without lagging indicators, entries are relatively timely
- No martingale or grid mechanism, avoiding account blow-up from doubling after losses
- Clean code structure, suitable for beginners to learn and build upon
Weaknesses
- Relies solely on a single candlestick pattern without multi-factor confirmation, resulting in many false signals
- No trend filter, likely to suffer frequent losses in choppy or counter-trend markets
- Lacks spread filter and session filter, vulnerable to being trapped in low-liquidity periods
- Fixed pip-based stop-loss and take-profit without considering market volatility changes
- No dynamic position sizing, unable to automatically adjust lot size based on account risk
Possible improvements
- Add a trend filter (e.g., moving average direction or ADX) to only trade three-inside patterns in the trend direction
- Implement ATR-based dynamic stop-loss and take-profit to adapt exit levels to market volatility
Risk assessment
Overall risk: Medium
- Single pattern signal reliability is limited, may produce consecutive losses in unfavorable market conditions
- Fixed stop-loss without volatility consideration may be too tight during high-volatility sessions, causing frequent stop-outs
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
LotSize | 0.1 | Fixed lot size |
StopLoss | 50 | Stop loss in points |
TakeProfit | 100 | Take profit in points |
MagicNumber | 12345 | EA magic number for order identification |
Timeframe | H1 | Trading timeframe |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.