Automating a Single-Candle Liquidity Retest Strategy

Summary

The article turns a liquidity-zone idea into rules for an MQL5 Expert Advisor. It treats a compact base candle as a liquidity structure and looks for a larger impulse candle in the same direction. If the range ratio and directional conditions pass, the EA places pending limit orders at the base candle’s high, midpoint, and low, aiming toward the recent swing extreme. Inputs govern trade direction, spread filtering, fixed lot size, stop-loss offset, target ratio, order expiry, and order identification.

The article emphasizes execution controls such as checking conditions once per new candle, limiting spread, buffering stops beyond the zone, and expiring stale orders. It frames profitability as something assessed across a sufficiently large sample, not an isolated trade, and recommends visual testing and iterative refinement. The excerpt describes the rules and implementation but does not provide quantitative backtest evidence, live results, or proof that the liquidity interpretation predicts future price movement. Performance will depend on market, timeframe, execution costs, and parameter choices.

Key ideas

• The setup defines a small base candle followed by a larger impulse candle with matching directional bias.
• Pending limit orders are distributed across the base candle’s range to capture a return into the zone.
• Spread limits, stop offsets, order expiry, and fixed volume are exposed as strategy controls.
• The EA evaluates setups once per new candle to support repeatable order placement.
• The article offers implementation guidance but no quantitative evidence of profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.