SwingTrade Candle Patterns EA V1.0 MT4 — Low-Drawdown Swing Trading Built for Prop Firms


Tired of overcomplicated robots that scalp for a few pips and then blow up on a random spike? SwingTrade Candle Patterns EA V1.0 MT4 takes the opposite approach. It slows things down, waits for high-quality candlestick signals (Pin Bar, Engulfing, Morning/Evening Star, Hammer), confirms with RSI to filter noise, and sizes each position using ATR so risk stays consistent even when volatility shifts. The result: steady, swing-based growth with low drawdown—ideal for traders who prefer cleaner charts, fewer trades, and calmer equity curves. If you’re eyeing prop firm evaluations, this EA is designed to respect risk rules and avoid reckless stacking.


Supported pairs include EURUSD, GBPUSD, AUDUSD, and USDJPY, with recommended H4 or H1 timeframes. Minimum deposit guidance is $500, though many users prefer larger balances for finer position-sizing increments. Let’s dig into how the strategy works, the key features you’ll actually notice day to day, and the settings that help you keep things smooth.


What It Does (Overview)


The core idea of SwingTrade Candle Patterns is simple: let the market tip its hand with well-researched reversal or continuation cues, then take positions only when momentum confirmation and risk context agree.



  • Candlestick Engine: The EA scans every bar for Pin Bars, Bullish/Bearish Engulfing, Morning/Evening Star, and classic Hammer setups. These patterns are more meaningful on H4/H1, where noise is lower and follow-through tends to be cleaner.

  • RSI Confirmation: Before any order, the EA checks RSI (default period 14). For longs, price should be recovering from a pullback rather than diving into overbought extremes; for shorts, the reverse. This reduces pattern “false positives.”

  • ATR-Based Money Management: Stop loss and position size are driven by ATR, so each trade’s risk is normalized across changing volatility. When volatility expands, lots shrink; when it contracts, lots scale reasonably. This keeps drawdowns tamer.

  • Prop-Firm-Aware Behavior: The EA avoids aggressive pyramiding, uses fixed risk per trade, and adheres to sensible daily exposure, helping you stay within typical evaluation rules for daily and overall drawdown.


In plain English: it waits, it filters, and it manages risk like a grown-up. You won’t see constant ping-pong entries. You’ll see curated setups aimed at higher-quality swings.


SwingTrade Candle Patterns EA V1.0 MT4


Key Features



  • Candlestick pattern engine: Pin Bar, Engulfing, Morning/Evening Star, Hammer

  • RSI confirmation to filter weak signals and chase fewer fakeouts

  • ATR-driven stop loss and position sizing for consistent risk across regimes

  • Timeframe-friendly: tuned for H4/H1 swing trading

  • Pairs covered: EURUSD, GBPUSD, AUDUSD, USDJPY

  • No martingale, no grid stacking—capital-first philosophy

  • Daily risk cap and max concurrent trades options to align with prop rules

  • Breakeven and trailing stop logic tied to ATR or structure (optional)

  • Trade filters: news-time windowing and session filters (optional if you use them)

  • Minimum deposit guidance: $500 (more balance = smoother sizing)

  • Lightweight and stable on MT4, friendly for VPS use


Strategy Logic 



  1. Pattern Detection:
    The EA identifies a valid candlestick pattern at the close of a bar. For example, a Pin Bar rejecting a key area or a bullish Engulfing following a shallow pullback.

  2. Momentum/Context Check via RSI:
    It confirms that RSI agrees with the trade direction (e.g., not chasing overstretched moves). You can tweak the RSI thresholds—for swing trading, many traders prefer moderate bands like 40/60 rather than extreme 30/70.

  3. Risk Framing with ATR:



  • Stop Loss: Often set to 1.5–2.5× ATR depending on your risk appetite.

  • Lot Size: Calculated so that risk per trade equals your chosen percentage (e.g., 0.5–1.0% of equity).


     4. Trade Management:
      Optional breakeven after price moves 1.0–1.5× risk, and ATR-based trailing for extended swings. If you’re running a prop evaluation, consider           conservative trailing to avoid giving back unrealized gains.


    5. Exit Conditions:
     If momentum fades, trailing SL tightens or the system exits at a TP multiple (e.g., 1.5R–2.5R), depending on your configuration.


Recommended Setup & Settings


Platform: MetaTrader 4
Pairs: EURUSD, GBPUSD, AUDUSD, USDJPY
Timeframes: H4 (primary) or H1 (secondary)
Min Deposit: $500 (larger balances allow finer risk increments)


Suggested Starting Parameters (tweak to taste):



  • Risk Per Trade: 0.5%–1.0% (prop-friendly)

  • ATR Period: 14 (classic, stable)

  • SL Distance: 2.0× ATR (H4) or 1.8–2.2× ATR (H1)

  • TP Style: Fixed 2.0R, or hybrid (partial at 1.5R, runner with ATR trail)

  • RSI Period/Thresholds: 14 / 40–60 for swing confirmation

  • Max Concurrent Trades: 1–3 total across symbols (evaluation-safe)

  • Daily Risk Cap: 1.5%–3.0% (choose based on your prop rules)

  • News Filter/Session Filter: Optional; if used, disable trading during major releases and illiquid windows


Broker & VPS Tips:
Choose a reputable, low-slippage broker with consistent spreads on majors. For uptime and consistent execution, a VPS close to your broker’s servers is wise—even with H4/H1 trading.


Why This EA Fits Prop Firm Evaluations


Prop firms care about max daily loss, overall drawdown, and risk consistency. SwingTrade Candle Patterns EA approaches these head-on:



  • No martingale or grid, keeping exposure controlled.

  • Fixed fractional risk: each trade is pre-defined risk, not a wild guess.

  • ATR stops: volatility-aware risk prevents oversizing during storms.

  • Moderate trade frequency on H4/H1: fewer opportunities to overtrade yourself into a violation.

  • Configurable daily risk cap: when you hit it, trading pauses—so bad days don’t spiral.


If you’ve been burnt by hyperactive scalpers during news spikes, this steadier rhythm feels like a relief.


Backtest & Forward-Test Guidance 


While individual results vary by broker, spreads, and your exact config, here’s the typical profile users aim for:



  • Win Rate: moderate (because entries are filtered, but not overfitted).

  • Average R Multiple: >1.3R with a mix of fixed TP and trailing runners.

  • Drawdown: kept comparatively low thanks to ATR stops and capped daily risk.

  • Trade Count: measured—expect quality over quantity, especially on H4.


For meaningful evaluation, backtest 5–10 years on each symbol/timeframe with variable spread and tick-data quality if possible. Then demo forward test for at least 4–6 weeks to ensure your broker conditions align with your backtest assumptions. Finally, go live or start an evaluation with conservative risk to let the edge speak over a larger sample.


SwingTrade Candle Patterns EA V1.0 MT4


Getting Started 



  1. Install the EA: Copy the .ex4 file into MQL4/Experts within your MT4 data folder.

  2. Restart MT4 and enable AutoTrading.

  3. Attach to Chart: Open H4 (or H1) on one of the supported pairs, drag the EA onto the chart.

  4. Input Settings:



  • Set Risk Percent (start with 0.5–1.0%).

  • Choose ATR Period and SL multiple (e.g., 14 and 2.0×).

  • Enable breakeven and trailing if you like, set modest values.

  • Configure max concurrent trades and daily risk cap.


     5. Allow Live Trading and, if needed, DLLs (if your news/session filters require it).


     6. Run on a VPS for stability.


     7. Monitor & Review: Check journal and trades weekly. Adjust thresholds only after a statistically meaningful sample.


Risk Management Best Practices



  • Keep risk tight: 0.5–1.0% per trade is plenty for prop-style swing trading.

  • Mind correlation: Running EURUSD and GBPUSD together can double-up exposure—reduce lots or limit concurrent trades.

  • Avoid major news bursts if your plan is purely technical.

  • Stick to your plan: Don’t toggle parameters mid-series unless you’ve reviewed a sizable sample and have data-driven reasons.


Conclusion


SwingTrade Candle Patterns EA V1.0 MT4 is a calm, rules-first swing trading system. It waits for clear candlestick signals, uses RSI to avoid chasing, and frames risk with ATR so each position has the same “bite size” regardless of volatility. If you want fewer, higher-quality trades and a smoother equity line that respects prop firm constraints, this EA is a strong candidate. Start conservative, test thoroughly, and let the edge compound with patience.


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