MT4 Liquidity Sweep EA

Requirements Specification for Asian Range Breakout EA

1. Introduction

This document outlines the functional and technical requirements for the Asian Range Breakout Expert Advisor (EA) for MetaTrader 4 (MT4). The EA identifies a trading range during a specified time window (Asian Range) and executes trades based on specific breakout conditions.

2. Functional Requirements

2.1 Asian Range Identification

• The EA must define the Asian Range based on a time window specified by the user.

• Default range: 19:00 EST to 24:00 EST.

• The user must be able to configure the start and end hours in the input parameters.

• The EA must account for Daylight Saving Time (DST) in EST and adjust accordingly.

• The Asian Range High and Low should be determined based on the highest and lowest price between the defined start and end hours.

2.2 Entry Conditions

• Long Trade Entry:

  • A long position must be entered when a candle wicks below the Asian Range Low but closes above it.

  • The trade must be executed at the close of the triggering candle.

• Short Trade Entry:

  • A short position must be entered when a candle wicks above the Asian Range High but closes below it.

  • The trade must be executed at the close of the triggering candle.

• The EA should execute trades based on the timeframe of the chart it is running on (e.g., 15-minute timeframe means candles are 15-minute).

2.3 Stop Loss (SL) & Take Profit (TP)

• The Stop Loss (SL) should be set below the low of the wick candle for long trades and above the high of the wick candle for short trades.

• The user must be able to define a buffer in pips to adjust the SL beyond the wick level.

• The SL must be at least 5 pips. If the calculated SL is smaller, it must be overridden to 5 pips.

• The Take Profit (TP) should be set based on a Risk-to-Reward Ratio (RRR) specified by the user.

  • TP = Entry Price + (Risk × Risk-to-Reward Ratio) for long trades.

  • TP = Entry Price - (Risk × Risk-to-Reward Ratio) for short trades.

2.4 Position Sizing Based on Account Balance

• The EA must provide an option for position sizing based on a fixed lot size or a percentage of account balance.

• The user must be able to define a percentage of the account balance to risk per trade (e.g., 1%).

• If SL is hit, the total loss should equal the specified percentage of the account balance.

• The EA must dynamically calculate the trade lot size based on the user-defined risk percentage and the distance of SL from the entry price.

3. Technical Requirements

3.1 MetaTrader 4 Compatibility

• The EA must be developed in MQL4.

• The EA should work on any currency pair and timeframe.

• The EA should use Magic Numbers to distinguish its trades.

• The EA should allow for user-defined inputs:

  • Asian Range Start & End Hours (EST)

  • Lot Size

  • Slippage

  • Magic Number

  • Stop Loss Buffer (pips)

  • Minimum Stop Loss (pips)

  • Risk-to-Reward Ratio

  • Risk Percentage of Account Balance

3.2 Broker Time & DST Handling

• The EA must adjust for broker time zone differences.

• The EA must handle Daylight Saving Time (DST) automatically based on North American DST rules:

  • DST starts on the second Sunday of March.

  • DST ends on the first Sunday of November.

• The EA must calculate the correct broker time adjustments based on whether DST is active.

3.3 Trade Execution & Risk Management

• The EA must place orders with defined slippage.

• The EA should avoid duplicate trades by ensuring that it does not enter multiple trades on the same signal.

• The EA should manage active trades independently and avoid interference with manual trades.

4. Performance & Logging

• The EA should log key events and errors for debugging purposes.

• The EA should handle unexpected broker rejections or execution errors gracefully.

• The EA should include basic debugging logs for identifying potential issues in execution.

5. Future Considerations

• Potential addition of trade filtering conditions such as trend filters, volatility filters, or time-based restrictions.

• Implementation of partial take profit or trailing stop mechanisms for optimizing profits.

6. Acceptance Criteria

• The EA correctly identifies the Asian Range based on the user’s configured time.

• The EA enters long and short trades as per the defined conditions.

• The EA correctly calculates SL and TP based on the rules provided.

• The EA correctly adapts to DST changes.

• The EA does not interfere with manual trades.

• The EA correctly calculates position sizing based on either fixed lot size or risk percentage of account balance.