Candlestick Shadow Trading Strategy
Info
The Candlestick Shadow Trading Strategy is a Expert Advisor for MetaTrader 5 that this expert advisor (ea) identifies trading opportunities based on candlestick patterns and shadow lengths. The EA monitors candlestick size, ensuring it meets or exceeds a defined minimum (`candle_size_minimum`).
Usage
This tool is typically used for automated trading on major forex pairs and gold.
Platform
This Expert Advisor works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Experts folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use Candlestick Shadow Trading Strategy
1. Installation: Open the "File" menu, select "Open Data Folder," navigate to MQL/Experts, paste your file, and restart the terminal.
2. Activation: Drag the EA from the Navigator onto a chart, ensure "Allow live trading" is checked in the Common tab, and verify the AutoTrading button is green.
3. Optimization: Right-click your chart, choose "Expert List," click "Properties" to adjust inputs, and save your preferred setup as a set file for future use.
4. Maintenance: Regularly check the "Experts" tab in the terminal window to monitor trade logs and potential execution errors.
Frequently Asked Questions
Q: Why is my EA not opening trades? A: Check the "AutoTrading" button, ensure "Allow live trading" is enabled, and verify your broker allows automated trading on your account type.
Q: Can I run multiple EAs on one chart? A: No, each chart can only host one active EA; however, you can open multiple charts for different currency pairs to run several EAs.
Q: What does the "smiley face" icon mean? A: A smiley face in the top-right corner of the chart indicates the EA is successfully running; a frowny face means it is disabled.
What this tool does
This Expert Advisor (EA) identifies trading opportunities based on candlestick patterns and shadow lengths.
Typical Use Case
This Expert Advisor excels in automated trading and technical analysis on MetaTrader 5.
Compatible Platform & Setup
This Expert Advisor works on MetaTrader 5. Place the file in the MQL5/Experts folder and restart the terminal.
Description & Settings
Related: trade signals using reversal candlestick patterns in mql5 - another powerful expert for MetaTrader 5 traders.
This Expert Advisor (EA) identifies trading opportunities based on candlestick patterns and shadow lengths.Also recommended: Trade Signals Based on Bullish/Bearish Harami Candlestick Patterns Confirmed by MFI Indicator using MQL5 Wizard - similar expert with strong performance on MetaTrader 5.
The EA monitors candlestick size, ensuring it meets or exceeds a defined minimum (`candle_size_minimum`). It also considers the length of opposite shadows (`length_opposite_shadow_max`), where the lower shadow is relevant for sell positions and the upper shadow for buy positions.
Trading conditions are strict: only one position can be opened per bar.
Risk management includes a feature to reduce lot size after a stop-loss is hit. If the last position was closed with a loss, the next position will be opened with a smaller lot size, determined by the `factor_of_reduction_of_lot_at_sl` parameter.
Position management offers flexibility:
- `position_lives_n_bars`: Positions can have a maximum lifetime set in bars, after which they are forcibly closed.
- `close_the_profitable_position_on_bar_n`: Profitable positions can be closed on a specific bar.
Trading is further restricted to a daily time interval, defined by `start_hour` and `end_hour`.
Position volume can be managed in two ways:
- Fixed lot size: Set by the `lots` parameter when `risk` is 0.
- Dynamic lot size: Determined by `risk` when `lots` is 0.
Additionally, users have the option to disable stop-loss, take-profit levels, and trailing stop features.
You may also like: MQL5 Wizard: Trade Signals Based on Hammer/Hanging Man Candlesticks with CCI Confirmation - excellent alternative for expert users on MetaTrader 5.
Source Code
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⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.