MQL5 Wizard - Trading signals based on Bullish Engulfing / Bearish Engulfing + MFI - MetaTrader 5 Expert

CheckCandlestickPattern(CANDLE_PATTERN_BEARISH_ENGULFING) method CC Candlestick Pattern class is used to check the formation of "Bearish Engulfing" candlestick pattern.

2. Trading signals confirmed by the MFI indicator

The closing of an open position depends on the value of the MFI indicator. This can be done in two situations:

Figure 3. “Bullish Engulfing” Pattern Confirmed by MFI Indicator

2.1. Open long position/close short position

The formation of the "Bullish Engulfing" pattern must pass through the Micro Financial Institutions indicator: MFi(1)<40 (the MFI indicator value of the last completed bar must be less than 40).

Short positions must be closed if the MFI indicator crosses above key levels (70 or 30).

 //+------------------------------------------------------------------+
//|Check the conditions for entering and exiting the market |
//| 1) Enter the market (open long position, result = 80) |
//| 2) Market Exit (Close Position, Result=40) |
//+------------------------------------------------------------------+
Integer CBE_BE_MFI::long condition()
  {
Integer result = 0 ; //--- idx can be used to determine the Expert Advisor working mode
//--- idx=0 - in this case the EA checks the trading conditions on every price move
//--- idx=1 - in this case the EA only checks the trading status of the news bar integer idx =StartIndex(); //--- checks the conditions for opening a long position
//--- Bullish engulfing pattern is formed and MFI < 40 if (check candlestick pattern (CANDLE_PATTERN_BULLISH_ENGULFING) && (MFI( 1 ) < 40 ))
    Result = 80 ; //--- check closing conditions
//--- Signal lines for overbought/oversold levels are crossed (30 up, 70 up) if (((MFI( 1 )> 30 ) && (MFI( 2 )< 30 )) || ((MFI( 1 )> 70 ) && (MFI( 2 )< 70 )))
    result = 40 ; //--- return result return (result);
  }

2.2. Open short position/close long position

The formation of the "Bearish Engulfing" pattern must be achieved by the Micro Financial Institutions indicator: MFI(1)>60 (the MFI indicator value of the last completed bar must be greater than 60).

Long positions must be closed if the MFI indicator crosses above key levels (70 or 30).

 //+------------------------------------------------------------------+
//|Check the conditions for entering and exiting the market |
//| 1) Enter the market (short position, result = 80) |
//| 2) Market Exit (Close Position, Result=40) |
//+------------------------------------------------------------------+
Integer CBE_BE_MFI::short condition()
  {
Integer result = 0 ; //--- idx can be used to determine the Expert Advisor working mode
//--- idx=0 - in this case the EA checks the trading conditions on every price move
//--- idx=1 - in this case the EA only checks the trading status of the news bar integer idx =StartIndex(); //--- checks the conditions for opening a short position
//--- Bearish engulfing pattern formed and MFI>60 if (check candlestick pattern (CANDLE_PATTERN_BEARISH_ENGULFING) && (MFI( 1 )> 60 ))
    Result = 80 ; //--- check closing conditions
//--- Signal lines for overbought/oversold levels are crossed (70 up, 30 down) if (((MFI( 1 )> 70 ) && (MFI( 2 )< 70 )) || ((MFI( 1 )< 30 ) && (MFI( 2 )> 30 )))
    result = 40 ; //--- return result return (result);
  }

2.3. Use the MQL5 Wizard to create an Expert Advisor

The CBE_BE_MFI class is not included in the standard library classes, to use it you need to download the abe_be_mfi.mqh file (see attachment) and save it to client_terminal_data\folder\MQL5\Include\Expert\Signal\MySignals. The same operation should be performed for the candlepatterns.mqh file. After restarting MetaEditor, you can use it in the MQL5 Wizard.

Create Expert Advisor Launch MQL5 Wizard :

Figure 4. Creating an Expert Advisor using the MQL5 Wizard

Let's specify the name of the Expert Advisor:

Figure 5. General properties of EA trading

After that we need to choose the trading signal module to use.

Figure 6. Signal properties of EA trading

In our case we use only one trading signals module.

Figure 7. Signal properties of EA trading

Added trading signals module:

Figure 8. Signal properties of EA trading

You can choose any trailing attribute, but we will use "Unused Trailing Stop":

Figure 9. Tracking properties of Expert Advisor

Regarding the money management properties, we will use "Fixed Volume Trading":

Figure 10. Money management attributes of EA trading

Press the "Finish" button and we will get the code of the generated Expert Advisor in Expert_ABE_BE_MFI.mq5, which will be saved in terminal_data_folder\MQL5\Experts\.

Default input parameters of the generated Expert Advisor:

 //--- Main signal input
Input integer Signal_ThresholdOpen = 10 ; //Open signal threshold[0...100]
Input integer Signal_ThresholdClose = 10 ; // Close signal threshold [0...100]
Enter double Signal_PriceLevel = 0.0 ; // price level at which to execute the trade
Enter double Signal_StopLevel = 50.0 ; // Stop loss level in pips
Enter double Signal_TakeLevel = 50.0 ; // Take profit level (in pips)

Must be replaced with:

 //--- Main signal input
Input integer Signal_ThresholdOpen = 40 ; //Open signal threshold[0...100]
Input integer Signal_ThresholdClose = 20 ; // Close signal threshold [0...100]
Enter double Signal_PriceLevel = 0.0 ; // price level at which to execute the trade
Enter double Signal_StopLevel = 0.0 ; // Stop loss level in points
Enter double Signal_TakeLevel = 0.0 ; // Take profit level (in pips)

Signal_ThresholdOpen/Signal_ThresholdClose input parameters allow specifying threshold levels for opening and closing positions.

In the code of the LongCondition() and ShortCondition() methods of the trading signal class, we specify the fixed value of the threshold:

The Expert Advisor generates opening and closing positions by the MQL5 Wizard using "votes" in the Trading Signals module. The vote of the main module (which acts as a container and consists of all added modules) is also used, but its LongCondition() and ShortCondition() methods always return 0.

The voting results from the main module are also used for "voting" averaging. In our case we have: main module + 1 trading signals module, so we need to take this fact into account when setting the thresholds. Therefore, ThresholdOpen and ThresholdClose must be set to 40=(0+80)/2 and 20=(0+40)/2.

The value of the Signal_StopLevel and Signal_TakeLevel input parameters is set to 0, which means that the position will be closed only if the closing conditions are met.

2.4. Historical backtest results

Let us consider Expert Advisor's backtest on historical data (EURUSD H1, test period: 2010.01.01-2011.03.16, PeriodMFI=37, MA_period=5).

When creating the EA, we used a fixed trading volume ( fixed lot size for trading , 0.1) and did not use the trailing stop algorithm ( trailing was not used ).

Figure 11. EA trading test results based on bullish engulfing/bearish engulfing + MFI

The best set of input parameters for the Strategy Tester MetaTrader 5 client can be found using the following command.

The code for the Expert Advisor created by the MQL5 Wizard is attached in Expert_abe_be_mfi.mq5.

Attachment download

📎 acandlepatterns.mqh (20.34 KB)

📎 acbe_be_mfi.mqh (8.02 KB)

📎 expert_abe_be_mfi.mq5 (6.63 KB)

Source: MQL5 #307