Order Flow Scalping with Indicator Filters and Risk Controls

Summary

This article describes a MetaTrader 5 scalping system that combines order-flow imbalance with technical filters. The EA compares buying and selling volume over a recent window, then checks trend strength, price relative to moving averages, RSI, and Bollinger Band position before opening a trade. ATR determines stop distance, with a larger target distance; the code also describes risk-based sizing, trailing stops, partial closes, news avoidance, a pause after consecutive losses, and spacing between trades.

The article reports backtests on EURUSD at short intraday intervals and characterizes the results as modestly profitable, with a high win rate but small overall profit relative to risk. It notes a profit factor slightly above one, a Sharpe ratio below one, and a drawdown near ten percent, alongside an equity curve with setbacks. These results are presented without enough detail here to establish robustness across market regimes, execution conditions, or out-of-sample data. The system is an example implementation, and its authors emphasize monitoring and parameter adjustment rather than unattended use.

Key ideas

• The entry logic combines volume imbalance with trend, moving-average, RSI, and Bollinger Band conditions.
• ATR sets a dynamic stop distance, while the target is set farther away than the stop.
• The EA includes position sizing and trade controls such as news avoidance and a consecutive-loss limit.
• The reported backtest suggests only modest profitability and includes noticeable drawdown and equity fluctuations.
• Backtest results alone do not establish that the scalping approach will remain effective under different execution conditions.

Tags

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