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# Project Specification — MT5 Expert Advisor "Prince Strategy"
## Project Goal
Develop an Expert Advisor (trading robot) for MetaTrader 5 that automates a price-action trading strategy based on candlestick patterns across multiple timeframes. The robot must work on the forex.com broker.
---
## 1. Traded Instruments
The robot must trade the following 4 forex pairs:
- GBPUSD
- EURUSD
- NZDUSD
- AUDUSD
**Important note:** For backtesting, MT5 tests one pair at a time. The robot should therefore be designed to work on the symbol of the chart it is attached to (recommended approach), or reliably handle all 4 pairs if technically feasible.
---
## 2. Strategy Architecture: Multi-Timeframe (Top-Down) Approach
The strategy uses a sequence of two timeframes:
| Step | Timeframe | Role |
|------|-----------|------|
| Bias analysis | H1 (or M30) | Determine market direction |
| Confirmation & entry | M15 (or M5) | Confirm and enter the trade |
Both the bias timeframe and the confirmation timeframe must be configurable as inputs (H1/M30 for bias, M15/M5 for confirmation).
---
## 3. Determining the BIAS (on H1/M30)
The bias (bullish or bearish direction) is determined by ONE of the following 3 patterns:
### 3.1 — Continuation Pattern (CP)
A bullish CP consists of **exactly 3 candles**:
- **B1** (oldest): bullish candle
- **B2** (middle): bearish candle, very small
- **B3** (most recent): bullish candle
**Validity conditions for the bullish CP:**
1. B3 must **fully engulf the body of B2** (B3's body must exceed B2's body, not just equal it)
2. B3 must **not be significantly smaller than B1** (B3 can be equal to or larger than B1 — this is accepted)
3. The **upper wick of B2 must not exceed the high of B3**
- The upper wick of B2 MAY exceed the high of B1 (accepted)
- The lower wick of B2 MAY exceed the low of B1 (accepted)
- The lower wick of B2 MAY exceed the low of B3 (accepted)
- ONLY the upper wick of B2 exceeding the high of B3 invalidates the CP
**The bearish CP is the exact mirror** (B1 bearish, B2 bullish very small, B3 bearish engulfing B2).
**Special cases:**
- A CP can break a zone (support/resistance) OR form "in open space" (no key level). Both cases are valid.
- On the bias timeframe (H1/M30), B3 can be long without issue.
### 3.2 — Engulfing
A bullish engulfing consists of **2 candles**:
- **B1**: bearish candle (size does not matter)
- **B2**: bullish candle that engulfs **B1's body AND B1's UPPER wick**
- The high of B2 must exceed the high of B1 (body + upper wick)
- The **lower wick does NOT matter** (B1's lower wick may extend below B2 — this is accepted)
**The bearish engulfing is the exact mirror:**
- **B1**: bullish candle (size does not matter)
- **B2**: bearish candle that engulfs **B1's body AND B1's LOWER wick**
- The low of B2 must go below the low of B1 (body + lower wick)
- The **upper wick does NOT matter** (B1's upper wick may extend above B2 — this is accepted)
**Clarification (important):** Engulfing does NOT require engulfing both wicks. Only the wick in the direction of the bias must be engulfed (lower wick for a bearish engulfing, upper wick for a bullish engulfing). The opposite wick is irrelevant.
### 3.3 — Break of Structure (BOS)
The BOS is the break of a nearby support/resistance level (not a distant one).
**Bearish BOS:**
- Identify the **close of the last bearish candle** that formed the support
- The market may consolidate near this level (several candles)
- A candle that **closes below this close** = confirmed BOS
**Invalidation condition:**
- If the breakout candle has a **wick that is too large** in the opposite direction, the BOS is invalid
- Precise rule: if the wick (lower wick for a bearish BOS, upper wick for a bullish BOS) is **larger than the body** of the breakout candle, the BOS is rejected
- A wick slightly larger than the body is tolerated, but an exaggerated wick invalidates it
**Bullish BOS = exact mirror.**
**Difference between CP and BOS:**
- CP = exactly 3 candles
- BOS = several candles (consolidation) then a breakout
**"Nearby" level:** The BOS is drawn on the most recent structure closest to the current price, not on a distant level.
---
## 4. CLEAN TRAFFIC (mandatory filter)
Clean traffic is the free space between the setup and the target. If the traffic is not clean, the setup is NOT taken, even if the bias is valid.
### 4.1 — Candle obstacles (base rule)
**Definition (bearish case):**
- In the space between the setup and the target, there must be NO **closes of bearish candles** that would form a support (obstacle)
- In other words: **no bearish candle in the traffic** (a bearish candle indicates a correction = creation of an obstacle)
**Bullish case = exact mirror**: no bullish candle (close forming resistance) in the traffic.
**Observation timeframe:** clean traffic is observed on the bias timeframe (H1/M30).
**Note:** The trader does not use pip-based measurement for distance — it is visual. The developer should propose a logic (for example: number of clean candles before the first obstacle).
### 4.2 — Old support/resistance levels as obstacles (additional rule)
Beyond candle obstacles, **old support/resistance levels** in the path are ALSO obstacles, **including FLIPPED levels** (a former support that becomes resistance, or a former resistance that becomes support). These levels can push price back and make the trade fail, even when the candle path itself is clean.
**Important — how an obstacle behaves:**
- An obstacle **BLOCKS** the trade as long as it is **NOT broken**.
- Once price **breaks** through an obstacle, that obstacle **no longer counts**.
- If another obstacle remains further ahead in the path, we must **WAIT** until price breaks it too before taking the trade.
- **This rule only applies WHEN there are obstacles in the path.** Very often there is NO obstacle at all (clean path, or levels far away) — in that case the trade is taken directly, nothing to wait for.
**Difficulty (to be solved with the developer):** The trader identifies these support/resistance levels **VISUALLY**, from experience. He cannot give an exact mathematical rule for them. The developer should **propose an automated method to approximate these levels** (for example: recent zones where price reacted or reversed multiple times). This will be tested on the DEMO version and refined together, stage by stage.
---
## 5. CONFIRMATION and ENTRY (on M15/M5)
Once the bias is validated on H1/M30 with clean traffic:
### 5.1 — Draw the reference line (confirmation line)
The confirmation line is drawn on the **wick of the LAST candle of the bias pattern**. The exact candle depends on which pattern produced the bias:
- if bias = **CP** → line on **B3's wick** (high of B3's wick for a bullish bias, low of B3's wick for a bearish bias)
- if bias = **Engulfing** → line on **B2's wick** (the engulfing candle)
- if bias = **BOS** → line on the **breakout candle's wick**
The confirmation process below works **the SAME WAY** regardless of which bias pattern was used — only the candle used to draw the line changes.
### 5.2 — Wait for the break of the intermediate resistance/support
- If price reaches the close of a candle (resistance in the bullish case), wait for it to break before taking the setup
### 5.3 — Drop to M15 (or M5) and look for confirmation
Confirmation is done **only via CP or BOS** (NOT via engulfing), according to 2 scenarios:
**Scenario 1:** Price breaks the reference line directly with a CP or BOS on M15.
**Scenario 2:** Price breaks the line WITHOUT showing a CP, then forms a CP or BOS **within a maximum of 2 candles after the break**.
**Important confirmation conditions:**
- The confirmation must NOT touch the obstacle. If the obstacle is touched, there is no more space → skip the trade. (Unless the M15 confirmation breaks that obstacle, then it is valid.)
- The **B3 of the confirmation CP must NOT be too long** on M15/M5 (unlike on H1/M30), because the Stop Loss would be too large.
- For BOS confirmation: the correction before the BOS must not be exaggerated, and price must not consolidate too long before breaking.
---
## 6. TRADE MANAGEMENT
| Parameter | Value |
|-----------|-------|
| **Entry** | At the close of B3 (of the confirmation) |
| **Stop Loss** | Slightly below the low of B3 (bullish case) / above the high of B3 (bearish case). Buffer configurable in pips (e.g. 3-5 pips) |
| **Take Profit** | Risk/Reward of 1:1 (TP at the same distance as SL) |
---
## 7. RISK MANAGEMENT
| Parameter | Value |
|-----------|-------|
| Risk per trade | 1% of capital |
| Simultaneous trades | Maximum 1 trade per pair (so max 4 simultaneous trades across the 4 pairs) |
| No 2 trades on the same pair at the same time | Yes |
---
## 8. PROGRESSIVE MONEY MANAGEMENT
The lot size must evolve progressively based on results ("symmetric progressive" method):
- Base lot calculated on 1% of capital
- After each **winning trade**: the lot increases by one step (e.g. +0.01)
- After each **losing trade**: the lot decreases by one step (e.g. -0.01)
- The lot never goes below the minimum base lot
- Safety: the lot must never exceed a configurable maximum risk (e.g. 5% of capital)
---
## 9. DESIRED CONFIGURABLE PARAMETERS
The developer should expose at least the following inputs:
- Bias timeframe (H1/M30) and confirmation timeframe (M15/M5)
- Risk per trade (%)
- Risk/Reward ratio
- Stop Loss buffer (pips)
- Lot increment/decrement (money management)
- Maximum risk (%)
- Pattern detection thresholds (candle size ratios for the CP, lookback bars for the BOS, etc.) to allow fine-tuning after backtesting
---
## 10. EXPECTED DELIVERABLES
1. The commented `.mq5` source file
2. The compiled `.ex5` file
3. A functional backtest on the 4 pairs showing a coherent number of trades (the trader estimates around 2-3 setups per day per pair on average)
4. Installation and usage documentation
---
## 11. NOTES FOR THE DEVELOPER
- The strategy relies on visual judgment (wick size, "clean traffic"). Some rules will need to be translated into adjustable numeric thresholds, to be fine-tuned together after the first backtests.
- The trader can provide annotated screenshots of each pattern to visually clarify each rule. Available annotated screenshots: valid bearish CP, invalid bearish CP, valid bearish BOS, bearish engulfing, clean traffic (open path), old support/resistance levels as obstacles (support became resistance), obstacles that must be broken before entry, and two full confirmation examples (H1 bias → M15 entry, both bullish and bearish).
- Priority: the robot should take trades faithful to the described logic, with selectivity to be refined afterwards.
---
*Specification document prepared for the development of an MT5 EA based on a multi-timeframe price-action strategy.*
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