M1 Countertrend Scalping EA (MT5) – Strategy & Configuration Guide

Executive Summary

The M1 Countertrend Scalping EA is a rule-based MT5 Expert Advisor derived from the popular ForexFactory strategy originally shared by cpfleger and summarized by Abade. It systematically automates mean-reversion countertrend trading on lower timeframes (primarily M1) by identifying overextended price moves away from multiple Exponential Moving Averages (EMAs), combined with optional grid re-entries, volume filters, and dynamic EMA-touch profit targets.

Key Features & Strategy Highlights

• Rule-Based Mean Reversion Converts discretionary scalping concepts into precise numerical conditions using distance filters relative to 4 key EMAs (9, 20, 50, 200).

• Controlled Grid / Averaging System Offers systematic re-entry management with customizable lot multipliers, maximum basket size restrictions, and minimum price gaps between orders.

• Dynamic EMA Touch Exits Scans nearest EMAs (EMA9 -> EMA20 -> EMA50 -> EMA200) in real-time and closes the entire order basket as soon as an enabled EMA line is touched in profit.

• Multi-Layered Risk Management Includes maximum spread filtering (news proxy), optional tick volume filters, session time windows, daily percentage loss limits, and a mandatory overnight forced-flat feature.

Core Trading Logic

1. First Entry Conditions (Rule 3)

A new position (BUY or SELL) is initiated only when flat on both sides and spread is within limits:

• BUY Signal: Current Close price is below ALL three fast/medium/slow EMAs (EMA9, EMA20, EMA50) by at least InpMinDistancePoints.

• SELL Signal: Current Close price is above ALL three fast/medium/slow EMAs (EMA9, EMA20, EMA50) by at least InpMinDistancePoints.

2. Re-Entry / Basket Averaging Logic (Rule 4)

If an existing position moves into drawdown, additional positions are added under strict controls:

• Condition: EMA9 crosses through the last opened order price in the adverse direction (downward for BUY, upward for SELL).

• Filters: Minimum gap in points (InpReEntryMinGapPoints) must be maintained, maximum order count (InpMaxReEntries) must not be exceeded, and volume condition must be satisfied (if enabled).

3. Exit Logic (Rule 5)

• Checks the basket continuously on each tick.

• Closes the entire basket (all open trades for the symbol/magic number) when price touches the nearest active EMA (EMA9, EMA20, EMA50, or EMA200), provided the exit level yields a net profit over the basket’s weighted average entry price.

Input Parameter Configuration Guide

Below is the complete parameter breakdown grouped by MT5 input sections:

1. General Settings

• InpMagicNumber (Default: 20231116): Unique identification number for tracking EA positions.

• InpTradeComment (Default: "M1_CounterTrend"): Comment label attached to executed orders.

• InpWorkingTF (Default: PERIOD_M1): Timeframe used to calculate indicators and entry signals.

• InpMaxSpreadPoints (Default: 20): Maximum allowable spread in points. Serves as a volatility/news proxy filter.

2. EMA Settings

• InpEMA_Fast (Default: 9): Fast EMA period for trigger and re-entry logic.

• InpEMA_Medium (Default: 20): Medium EMA period.

• InpEMA_Slow (Default: 50): Slow EMA period.

• InpEMA_Trend (Default: 200): Long-term trend EMA period for extended exits.

3. First Entry Settings

• InpMinDistancePoints (Default: 150): Minimum distance (in points) price must stretch beyond EMA9, EMA20, and EMA50 to trigger the first trade.

• InpLotSize (Default: 0.01): Initial trade volume in lots.

4. Re-Entry (Averaging) Settings

• InpUseReEntries (Default: true): Enable or disable the grid/averaging feature.

• InpMaxReEntries (Default: 5): Maximum number of additional grid orders allowed per basket.

• InpLotMultiplier (Default: 1.3): Multiplier applied to lot size for each subsequent re-entry order.

• InpMaxLotSize (Default: 1.0): Cap on single order lot size.

• InpReEntryMinGapPoints (Default: 100): Minimum price distance (in points) required from the previous order before opening a new grid level.

5. Volume Filter (Discretionary Rule 6)

• InpUseVolumeFilter (Default: false): Enable/Disable tick volume confirmation for re-entries.

• InpVolumeMAPeriod (Default: 20): Moving average period for tick volume.

• InpRequireVolumeWeak (Default: true): When true, requires volume to be below its MA before re-entering (indicates weakening momentum, safer). When false, requires volume to be above its MA.

6. Exit Settings

• InpExitOnEMA9 (Default: true): Enable EMA9 as a dynamic exit target.

• InpExitOnEMA20 (Default: true): Enable EMA20 as a dynamic exit target.

• InpExitOnEMA50 (Default: true): Enable EMA50 as a dynamic exit target.

• InpExitOnEMA200 (Default: true): Enable EMA200 as a dynamic exit target.

7. Session / Overnight Protection

• InpUseSessionFilter (Default: false): Enable server-time trading window restriction.

• InpSessionStartHour (Default: 7): Active trading start hour (0–23).

• InpSessionEndHour (Default: 21): Active trading end hour (0–23).

• InpForceCloseOvernight (Default: true): Forces all positions to close and blocks new trades before EOD.

• InpForceCloseHour (Default: 22): Server hour at which all positions are closed and trading halts.

8. Risk Management

• InpMaxDailyLossPercent (Default: 0): Daily drawdown protection limit in % of account balance (0 = disabled).

• InpSlippagePoints (Default: 20): Maximum allowed order execution slippage in points.

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