Instructions for the Candle Power EA Settings

Instructions for the Candle Power EA

https://www.mql5.com/de/market/product/140783?source=Site+Market+My+Products+Page

(The quick start guide is included in the appendix alongside the settings.) 

1.   Quick start of the EA   

1. In the MT4 terminal, follow this path: File / Open File Folder / MQL4 / Experts Save the EA here.

2. Open MT4 Terminal / Navigator / click on Experts / Right-click / Refresh.

3. Open MT4 Terminal / Navigator / click on Experts / Right-click / Refresh.

4. After refreshing, select the EA and drag it to the desired trading symbol (S+P 500).

5. Select Load Setting, where the settings are stored, or use an existing strategy in the EA. Be sure to start the EA with a loaded setting, not with the. ex4 file alone, as due to MQL5's internal testing, a test is performed on EUR/USD and not on the        S+P 500. Due to the symbol deviation, I had to adjust the basic settings stored in the EA so that the EA could be successfully uploaded. Therefore, always start the EA with a setting!

6. Under the general heading in EA, a tick should be placed next to Allow live trading. 

 
7. Check your time zone and, if necessary, enter a time difference to European Summer Time (CEST / UTC +2) in the second field from the top in EA Time_Difference_CET_to_Broker. Possibly enter an additional time difference if your            broker time differs from your VPS. (For detailed information, please refer to Point 2.2. and 5.).

8. Under the item Money Management, record the risk in percent and determine which Money Management strategy should be used. Increase the minimum lot size if it is too small in the basic setting. In the current settings, this is safely                        limited to 1 lot. Check whether a SL value is recorded in Money Management and under the Stop Loss section (it should be the same method; detailed information see instructions in the appendix, point  3.4. and 3.5.)

9. Check whether the filter is set to true for the last value under the heading Stop Loss at the point RaisetoMinLotsizeIfSmaller, except when trading with fixed lot sizes. 

10. Confirm with OK. The name of the EA and a smiley face with the corners of the mouth turned upwards should be displayed in the top right-hand corner of  the chart. If this is not the case, activate auto trading in the EA.

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2. Review of all risk parameters before launch

Before using the EA in live trading, all risk settings should be carefully checked and adjusted. The following steps will help you avoid typical mistakes:

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2.1. Entering an individual magic number

 

Please enter an individual magic number consisting of at least five digits. If necessary, overwrite the preset number.

Important: Each strategy or setting loaded in the EA must be assigned its own magic number so that trades can be clearly assigned and distinguished from one another.

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2.2. Comparing the time difference to European Summer Time (CEST / UTC +2) + optional time difference between broker time and VPS time

The EA has checked times for entry and exit, so the EA does not trade immediately when one of the technical indicators is met but can enter or exit a trade later. The times configured for all settings correspond to European Summer Time (CEST / UTC + 2). If you live in a different time zone or your VPS is running in a different time zone, the time must be corrected using the Time_Difference_CET_to Broker function. You can determine the difference to European Summer Time on the website https://www.zeitverschiebung.net/en/. Attached is an example of the time difference between New York and Berlin. In this example, the trader would want to operate the EA in New York. 

Attached is an example of the time difference between New York and Berlin. In this example, the trader would want to run the EA in New York.

In this example, you would need to enter +6 in Time_Difference_CET_to_Broker so that the EA enters at the same time as the settings are designed for. There are other important points to consider here. If there is a shift between your VPS time (Windows) and the broker time, this difference must be subtracted or added to the determined time, depending on the direction of the shift. A shift can be implemented in the EA in 30-minute increments (insert a period between the hour and minutes), and the maximum total shift for all times combined is between -12 and +12 hours.

Here's an example of a time difference between the VPS and the broker time:

The VPS time is usually displayed in the taskbar at the bottom right of Windows. This time serves as the basis for all time calculations in the EA. If the broker time does not match this time, a deviation must be recorded in the EA in addition to any possible time shift!

Image shows the VPS time in Windows.

Image shows Broker time

In the example above, there is a time difference of -1 hour between the VPS time (Windows) and the broker time. The VPS time is the basis, so we need to return to this value in our calculations at the end. Thus, the entire time difference example for New York and Berlin in the summer according to CEST / UST +2 = +6 hours difference - 1 hour broker time difference = +5 hours of the total time difference to be recorded, which must be entered in the Time_Difference_CET_to_Broker parameter.

 Incorrect time setting can cause the EA to open trades too early or too late and result in different results!!!

 Please enter any time changes in your time zone or the change to European standard and summertime in a calendar and adjust them accordingly in the EA. The EA cannot detect this on its own. You should completely     restart the EA each time, including restarting the terminal, to ensure the time adjustment is processed correctly.

 After starting the EA, the time difference between the VPS time and the broker time can be checked again in the EA's chart window.

Image chart window with the times

Broker time

VPS-time

In the example, everything is now set correctly regarding the time. The EA does not display or check a general time shift, so the EA cannot determine the time shift from New York to Berlin and must be determined independently, as described in the previous steps.

Time base: Berlin (summer and winter time). 

Please check your local time at https://www.zeitverschiebung.net/en/ (deviations are possible, e.g., no DST). 

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2.3. Reviewing money management settings

 Does the chosen money management method match the stop-loss method?

 If ‘Fix Lots’ has been selected: Is the entered lot size appropriate?

Recommendation: Start conservatively with a risk of 0.30% to 0.50% per trade. Only increase the risk once you have gained experience with the EA and developed confidence in the strategy. 

With large stop loss distances, position sizes are often small; increase risk if necessary.

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2.4. Setting the maximum lot value

   

The ‘Maximum Lots’ parameter serves as an additional safety mechanism to prevent outlier positions.

 Recommended value: 2 to 3 times the average position size, so that there is some leeway

 This value can be determined through your own back testing or historical data.

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2.5. Using the minimum lot size function

If the calculated position size is below your broker's minimum lot size (e.g. for small accounts of 3,000–5,000 USD), this feature will automatically activate the smallest permitted position size when enabled.

Caution: Be sure to check your broker's contract specifications, as the minimum size can vary greatly depending on the symbol and broker (e.g. 0.01, 0.10 or 1 lot). This feature is enabled by default and should be checked.

An incorrectly configured minimum size can lead to a massive increase in risk!!!

View contract specifications:

 Right-click on the desired symbol in Market Watch → Select Specifications.

 Example US500, contract specifications:

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2.6. Emergency stop loss via percentage limit

If a stop loss cannot be set for a trade (e.g. due to time changes or high volatility), a percentage SL value automatically applies as additional security.

 This protects against excessive position sizes if, for example, the SL is bypassed due to very high volatility or cannot be set for other reasons.

 For back tests with fixed lot size money management (e.g. 1 lot), this function must be deactivated!

 In live operation, it is recommended to always leave this function activated.

2.7. Enabling automatic trading

Only activate automatic trading after all the above points have been checked.

 The EA should only be started once the configuration has been fully completed and tested.

 Red button = Trading disabled

 Green button = Automatic trading active

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3.Strategy description of the Expert Advisor

Basic concept & technical basis

 Trading approach: Mean reversion (long positions after market setbacks)

 Key indicators:

 RSI (Relative Strength Index)

 CPI (Candle Power Indicator)

 Flexibility: combinable indicators + 14 expandable filters

 Advantage: Low correlation between strategies

Back testing priorities & risk management in my strategy development:

 Development focus:

1.    Low drawdown

2.    High hit rate

3.    Profit factor

 Risk control:

 Small position sizes (usually distant SL levels)

 The Stop Loss can be reduced using the Stop Loss Maximum Percent function if a tighter SL is desired.

 Conservative approach (capital preservation > maximum return)

 Note: Optimising returns in your own back tests often involves higher risk!

Strategies included:

1. Big Bad Bug Bounce

 Entry: RSI + volatility filter after market setback

 Standard conditions that may apply to all strategies:

 Time-based (if price > previous day's high)

 Stop loss/take profit/break even

 Timeout for lost items

 Exit: Current price is higher than the previous day's high

 Trading frequency: ~35 trades/year on average

2. Marauder Mondays

 Entry: CPI + weekday filter

 Annual start filters for risk reduction

 Exit: Previous day's high + standard conditions

 Trading frequency: ~17 trades/year on average

3. Arachnid Anchors

 Entry: CPI + depth filter

 Exit: Course > Previous day's value + standard conditions

 Special feature: Lower frequency (sometimes 0 trades/year)

 Trading frequency: ~12 trades/year on average

4. CPI + Daily

 Entry:

 CPI + daily low filter (multi-day lows)

 Exit: Price > the previous day's high

 Trading frequency: ~8 trades/year on average

   5. Would you like to Trade more?

 Entry: CPI + Weekday filter

 Exit: CPI-based + time check

 Standard terms and conditions

 Trading frequency: ~21 trades/year on average

Back testing priorities & risk management

 Development focus:

1.    Low drawdown

2.    High hit rate (>X%)

3.    Profit factor >X

 Risk control:

 Small position sizes (distant SL levels)

 Conservative approach (capital preservation > maximum return)

 Note: Yield optimisation often involves higher risk or a lower success rate!

Link is only available for buyers included in the complete instructions   

(in German with all other languages as subtitles)

Note: All strategies have been optimised for the S&P 500 – other assets require adjustments or recalculation of the settings.

If you would like to develop your own strategies with the EA and you do not live in the European Summer time zone, you must also enter the time difference as explained in 2.2. and 5. so that the indicators are calculated correctly. You must also select a later back test date under the parameter. The EA needs the distance from your back test period to the set date as a lead time so that the indicators in the EA can be calculated correctly. Depending on the period of the indicators, a lead time of X times the daily period is required. Therefore, if you want to use the RSI daily with a period of 100, for example, the back test period in the parameter must be shifted back by at least 100 days. It is generally recommended to build in a buffer period of at least six months, or even better, one year. Values other than daily values for the indicators may need to be converted so that the minimum required delay for the start of the back test can be calculated.

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        If you have any questions or problems regarding the EA, 

        please feel free to contact me at any time via MQL5. 

                 Good trades and best of luck with the EA!

        Simon Dietrich