Disclaimer: the Metatrader 4 EAs that we provide for free are for educational purpose only. These expert advisors (algo trading) have been created between 2015 and 2019 for testing purpose. Some EAs have been used for live automatic trading in the past and some EAs should still provide some good results under certain market condition (and input parameters) nowadays, but we don’t advise to use any of these EAs live. If you choose to do this, it’s at your own risk.
We do not offer any support for this EA.
How the EA works
The EA takes advantage of the engulfing candle pattern. If you don’t know what an engulfing candle pattern is, you can search on the Internet, and here is a summary:
- For a sell signal, you must have :
- A bullish candle with an acceptable body size (if the candle is too small, we may exclude it because the signal won’t be relevant)
- A bearish candle that engulfs the previous candle. The bearish candle must close below the previous candle open
- For a buy signal, it is the exact opposite.
Why using the engulfing pattern?
The engulfing candle pattern is a strong reversal pattern but it may not be relevant alone on small timeframe. We recommand using it on H1+ timeframe only.
A bullish engulfing pattern (for instance) shows us that the buyers really want to reverse the trend because it breaks the previous candle high and even close above it.
EA input parameters
|StopLoss||20.0||the stopLoss static pips value (0 to disable stop loss)|
|TakeProfit1||35.0||the first takeprofit static pips value (0 to disable)|
|TakeProfit2||50.0||the second target static pips value (0 to disable)|
|TakeProfit3||120||the third target static pips value (0 to disable)|
|TakeProfit4||235||the fourth target static pips value (0 to disable)|
|LotSize||1.0||Lot size per opened position|
|EAMagicNumber||205000||EA identifier, you can put whatever you want|
|MinCandleBodySize||9||set a minimum acceptable candle body size for the engulfed candle|
|MaxCandleBodySize||35||set a maximum acceptable candle body size for the engulfed candle|
|UseTradingTimes||true||Set this to true if you want to restrict the EA trading time with the 2 following inputs|
|TradingGMTStartTime||6:00||the EA intraday start hour:minute (GMT time)|
|TradingGMTEndTime||18:00||the EA intraday stop hour:minute (GMT time)|
|BrokerGMT||3.0||Broker GMT shift, if your broker is at GMT+3 put 3 there|
|MaxSpreadPips||2.0||Security to avoid opening position when the spread is higher than this value|
Source code Engulfing candle EA
Should you need to get the source code or just thank us for the free content, you can place an order using the buttons below.
We can’t give the source code for free because it’s using some custom libs that took a lot of time to build but we are offering it at a €29 fair price. The files will be sent to your paypal email address within 24 hours.
EA backtests example
Here is a quick backtest I made on GBPUSD H1 (4 months) for testing purpose.