Creation of a Simple Price Action EA - MT5

T1

Automated EA for MT5

Idea of Trading System: 

Buy market entries are performed when price reaches a new 4 candle high. Stop loss of a new 2 candle low from entry candle. Take profit at 4x risk of stop loss (1 to 4 risk reward ratio).

Sell market entries are performed when price reaches a new 4 candle low. Stop loss at a new 2 candle high from entry candle. Take profit at 4x risk of stop loss.

Trend:

Is determined by 4 candle high, trend is growing. 4 candle low trend is falling

Trading Signal:

• Buy signal: when price reaches new 4 candle high (unclosed candle)

• Sell signal: when price reaches new 4 candle low (unclosed candle)

Positions are opened:

• Buy Position: Market price when 4 candle high is reached on a unclosed candle

• Sell Position: Market price when 4 candle low is reached on a unclosed candle

Additional filters for opening a position

• 1 position per symbol: if there is already a position in place, no new positions will be taken, until current position is closed by stop loss, or take profit.

Positions are closed:

• Buy Position Closed at: when price reaches a new 2 candle low from entry candle

• Sell Position Closed at: when price reaches a new 2 candle high from entry candle

Additional filters for closing a position

Close by Take Profit: 

• Buy Position: 4x the risk of stop loss (1 to 4 risk reward)

• Sell Position: 4x the risk of stop loss (1 to 4 risk reward)

/// Example: if the stop loss is at a $10 loss, Take Profit Signal at $40 profit

Position management:

- Buy Position:

• Stop Loss in place when position is entered at 2 candle low

-Sell Position

    -     Stop Loss in place when position is entered at 2 candle low

Position Size: 

• 1 lot