Price Action Waterfall Pending MT4

? Price Action Strategy: Waterfall Pending

myfxbook :

? 1. Waterfall Candle Signal Strategy

This strategy detects large momentum candles—those significantly larger than the previous—and places pending orders in the direction of the expected continuation, confirmed by EMA:

• Buy Entry: Strong downward candle + price above EMA → Place Pending Buy Limit/Stop

• Sell Entry: Strong upward candle + price below EMA → Place Pending Sell Limit/Stop

? 2. Signal Filters for Accuracy

• EMA Filter: Trade in trend direction only (Buy above EMA, Sell below EMA)

• ADX Filter: No trades if ADX < 10

• Spread Control: Avoid trading in high spread conditions

• EMA Distance Filter: Skip trades if price is too far from EMA

? EA Key Features

1. Timeframe Flexibility: Supports M1 to H4 with customizable filters

2. Risk Management: Equity-based lot sizing, Max Drawdown limit

3. Adjustable SL & TP: Tailor Risk:Reward ratios to strategy needs

4. Trailing Stop: Locks in profits as price moves favorably

5. 24/7 Automated Execution: Ideal for passive trading

? Recommended Setup

• Platform: MetaTrader 4/5 (MT5 preferred)

• Timeframe: M30, 6 set files avilable for M1, M5, M15, M30, H1 and H4

• Currency Pair: XAUUSD (Gold vs USD)

• Minimum Capital: $100 (>$1,000 recommended)

• Broker: Trusted, low-spread broker

✅ Strengths & ❗ Limitations

✅ Strengths:

• Approx. 67% win rate

• Drawdown < 4% (on $10k capital)

• $7,800 profit from $10,000 in 1-year backtest

❗ Limitations:

• Uses pending orders only → May miss fast-moving trades

⚙️ EA Parameter Overview

Core Strategy

• TimeFrame = 30 Minutes

• EMA_Period = 165

• Size_multiply = 4.475

• Size_candle_pips = 90

• Pip_offset = 296

• Wating_Pending_Mins = 460

Signal Filters

• Spread = 40

• ADX_Period = 35

• ADX_Score = 16

• Distance_near_EMA = 4000

• Distance_far_EMA = 150

Risk Management

• Lot_Devided = 200,000

• SL = 1380 pips / TP = 2140 pips

• Trailing Stop = 1350 pips / Step = 200 / Start = 1360

Advanced Options

• On_Recovery = false

• Consecutive_losses = 2

• Recovery_Lot = 2.0

? Lot Size Calculation Examples

• Capital $10,000 → 10,000 / 200,000 = 0.05 Lots

• Capital $1,000 → 1,000 / 100,000 = 0.01 Lots

• Capital $100 → 100 / 200,000 = 0.01 Lots (rounded up)