Liquidity Sweep Reversal EA
- Experts
- Luigi Salvatores Buigues Morillo
- Versione: 1.10
🔵 What is Liquidity Sweep Reversal EA?
Liquidity Sweep Reversal EA is an automated Expert Advisor based on Smart Money Concepts (SMC). It identifies liquidity pools (swing highs and lows) and waits for the price to sweep those levels with a rejection wick, then enters a reversal trade in the opposite direction.
This strategy exploits a well-known institutional behavior: market makers push price beyond obvious support/resistance levels to trigger retail stop losses and collect liquidity, before reversing sharply. The EA detects this moment on the closed bar and enters at the beginning of the reversal.
📊 Backtest Results (EURUSD H1 | 2025.01.01 – 2026.03.01)
| Metric | Result |
|---|---|
| Initial Deposit | $10,000 |
| Net Profit | +$1,381 (+13.8%) |
| Profit Factor | 1.39 |
| Sharpe Ratio | 5.73 |
| Max Drawdown | 4.81% |
| Total Trades | 174 |
| Win Rate | 39.66% |
| Avg Win / Avg Loss | $70.78 / $33.35 |
| Max Consecutive Losses | 11 |
Backtest performed with 100% tick quality on MetaQuotes-Demo data.
⚙️ How It Works
Step 1 — Identify Liquidity Levels The EA scans the last N bars (default: 20) and identifies the highest high and lowest low, which represent liquidity pools where stop losses tend to cluster.
Step 2 — Detect the Sweep On each closed bar, the EA checks if the price:
- Swept above the swing high and closed back below it (bearish reversal signal)
- Swept below the swing low and closed back above it (bullish reversal signal)
The wick that performed the sweep must exceed a minimum ATR threshold to filter weak moves.
Step 3 — Enter the Trade A market order is placed at the open of the next bar. Stop Loss is placed beyond the sweep extreme. Take Profit is set at a fixed ATR multiple.
Step 4 — Manage with Trailing Stop Once the trade reaches the activation threshold, an ATR-based trailing stop locks in profits while allowing the position to run during strong reversals.
🛡️ Risk Management
- Fixed % risk per trade — position size is calculated automatically based on equity and stop loss distance
- ATR-based Stop Loss — adapts to market volatility
- Trailing Stop — protects profits once activated
- Time-based exit — closes trades that do not move within N bars
- Spread filter — avoids entries during high spread conditions
- One position at a time — prevents overexposure
🎛️ Input Parameters
Signal Settings
- Lookback — number of bars to define liquidity levels (default: 20)
- ATR_Period — ATR calculation period (default: 14)
- WickMin_ATR — minimum wick size as ATR fraction to validate the sweep (default: 0.25)
Session Filter
- Use_Session_Filter — enable/disable session filter
- SessionStartHour — trading session start in server time (default: 13)
- SessionEndHour — trading session end in server time (default: 18)
ADX Filter
- Use_ADX_Filter — enable to trade only in ranging markets (default: false)
- MaxADX — maximum ADX value allowed (default: 20)
Spread Filter
- Use_Spread_Filter — enable spread filter (default: true)
- MaxSpread_Points — maximum allowed spread in points (default: 25)
Risk & Trade Management
- RiskPercent — risk per trade as % of equity (default: 0.50%)
- SL_ATR — stop loss distance in ATR (default: 0.60)
- TP_ATR — take profit distance in ATR (default: 2.50)
- TimeExitBars — close trade after N bars if still open (default: 12)
- Magic — magic number to identify EA orders
Trailing Stop
- Use_Trailing — enable trailing stop (default: true)
- Trail_ATR — trailing distance in ATR (default: 1.50)
- Trail_Step_ATR — minimum step to move SL, avoids noise (default: 0.40)
- Trail_Activation_ATR — activate trailing only when profit >= X ATR (default: 0.50)
📋 Recommended Settings
| Parameter | Value |
|---|---|
| Symbol | EURUSD, GBPUSD, USDJPY |
| Timeframe | H1 |
| Min Deposit | $500 |
| Leverage | 1:100 or higher |
| Account Type | ECN / Raw Spread recommended |
⚠️ Important Notes
- Backtest results do not guarantee future performance
- Recommended to run on ECN accounts with low spread
- Session times are in server time — adjust SessionStartHour and SessionEndHour according to your broker's timezone
- Always test on a demo account before going live
- The EA is designed for H1 timeframe — other timeframes may require parameter adjustment
