In the “Verification by backtesting" series, we verify the performance of free EAs registered in the MQL5 community from the backtesting results. We hope it will help you choose EA.
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The 15th installment is “CAP Breakout EA MT5“.
About “CAP Breakout EA MT5"
Quote from the official page (translation)
The EA uses several breakout strategies, including ZikZak breakout, daily candle breakout, London time breakout and pivot point breakout. In addition to customizable trading scenarios and position management features, it offers many useful features such as customizable trading sessions, martingale mode and reverse martingale mode.
- Easy to use and customizable MACD settings.
- Grid trading possible
- Breakeven, SL, TP and trailing stop can be customized
- Works with ECN/non-ECN brokers.
- Implemented martingale function
- Customizable indicator settings
- Filtered trading by FX session
- Built-in money management
- Built-in news filter. EA automatically downloads news data from news sites
By entering the EA, you can choose from four different trading methods.
- Double-decker (long and short): The EA takes both trades, buying at the bullish MA crossover and selling at the signal of a bearish crossover.
- Optional: Open any one trade (buy or sell) when the signal first comes
- Long only: Buy with bullish signals and ignore bearish signals.
- Short only: Sell with bearish signals and ignore bullish signals.
In addition, it implements four different money management modes.
- Manual Lot Size: Trade with a fixed lot size.
- Automatic calculation of lot size: the EA increases or decreases and automatically changes the lot size depending on the account level
- Martingale: After a losing trade, double the lot size.
Click here for the user guide
Breakout Strategy of “CAP Breakout EA MT5"
Daily Candle Breakout
- Buy: When the high of the previous day’s candlestick (daily) is broken out
- Sell: When the low of the previous day’s candlestick (daily) is broken out
- Buy: when touching the upper price of the ZikZak line
- Sell: When you touch the lower price of the ZikZak line
If the current price is already above or below the zikzak price, the EA will look for the upper or lower of the nearest zikzak line for a breakout signal.
- Buy: when touching the upper price of the fractal line
- Sell: When touching the lower price of the fractal line
If the current price is already above or below the current fractal price, the EA will look for the nearest upper or lower fractal price for a breakout signal.
Inside Bar Candle Breakout
When some candles are completely inside the candle, they are called inside bars. The outer candlestick is the signal candle. When you break out the high or low of the signal candle, the EA opens a trade.
- Min. Bar In (Inside Bars) – if there are many candles in one candlestick, the EA should set whether the candlestick is considered a valid signal candle.
- Min. Candle Range for (Inside Bars) – for active signal candles, you need to set the minimum range of the high-low of the signal candle. 0 means disabled.
- Buy: when the signal candle breaks out of the high
- Sell : when the signal candle breaks out of the low
London Time Breakout
- Buy: When the price updates the high between the Start Time and the End Time (time zone)
- Sell: When the low between Start Time and End Time is updated
Pivot Point Breakout
The pivot point breakout strategy in this EA uses a modified version of the traditional pivot point called Camarilla Pivot. This is a pivot point that incorporates Fibonacci ratios within the system. Based on the previous day’s high, low and close, there is a formula that determines a total of 10 levels of 5 support levels (L1~L5) and 5 resistance (H1~H5).
H4 (R4) and L4 (S4) are considered breakout points.
Trading “CAP Breakout EA MT5"
- Capture breakout points with various strategies and accumulate profits by scalping. In case of retrograde, the lot is increased by the martingale method to survive.
- The number of traded lots is 0.02 ⇒ 0.02 ⇒ 0.03 ⇒ 0.05 ⇒ for the initial lot 0.01 … (×1.5). If you change the initial lot to 0.03, the number of lots will be 0.05 ⇒ 0.07 ⇒ 0.10 ⇒ 0.15 ⇒ … (×1.5). Since it is rounded to two decimal places, there is a slight deviation.
Screening of supported currency pairs
In order to screen the possible currency pair candidates, we first conducted a backtest using historical data from the last 3 years and January 2013-December 2015. When comparing the time axis with M15, M30, and H1, there was not much difference. I went with the M30 because it performed well with only the M30.
Other test conditions are NOZAX Zero Account (ECN), initial balance of 10,000 USD, EA parameters set to the default settings.
- Compared Stocks: 20 Currency Pairs – AUDJPY#, AUDNZD#, AUDUSD#, CADJPY#, CADCHF#, CHFJPY#, EURAUD#, EURCHF#, EURGBP#, EURJPY#, EURUSD#, GBPAUD#, GBPCAD#, GBPCHF#, GBPJPY#, GBPUSD#, NZDUSD#, USDCAD#, USDCHF#, USDJPY#
Comparison of past performance between the last three years
1 January 2020 – 31 December 2022
1 January 2013 – 31 December 2015
- Based on the backtest results of the last three years and the past, the only currency pair that performed well in both was EURCHF.
Backtesting with EURCHF
- Account: NZX Zero (ECN) (NOZAX)
- Currency Pair: EURCHF#
- Timeframe: M30
- Initial Balance: $10,000
- Period: 1 January 2013 – 31 December 2022
- Parameters: default
The EA uses the martingale method to increase the win rate, while setting a stop loss to prevent losses from inflating more than necessary. However, if you encounter a stop loss in a row, it will take time to recover, so the key is to choose a currency pair that can get the most stable profit and loss curve possible.
In addition, since the loss is limited, it is relatively easy to increase the lot, but as mentioned above, if you increase the initial lot by n times, the scale of the entire trade will not simply increase n times. A slight deviation may affect the trade, so be sure to backtest each time you change lots.
Most martingale-type EAs with stop loss end without recovery. In that sense, it may be said that it is a rare EA.