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Stochastic Daily Breakout combines two simple ideas on gold. A turn in the stochastic signal line marks a possible change in momentum, and yesterday's high and low mark the levels where that change has to be confirmed. The EA never buys or sells at the market: it places a stop order at one of those levels, so the trade opens only if price actually gets there.
The code is short and self-contained. The stochastic is computed inside the EA, because this variant uses the close-to-close range with SMMA smoothing, which differs from the built-in iStochastic. The only built-in indicator is iBands. The EA trades one position at a time.
Trading rules
- Buy: the stochastic signal line turns down (a peak on the previous bar) and the open three bars ago is below the upper Bollinger band. A buy stop goes to yesterday's high.
- Sell: the signal line turns up (a trough on the previous bar) and the open three bars ago is above the lower Bollinger band. A sell stop goes to yesterday's low.
- Stop loss and take profit: 1.9% of the entry price each.
- Expiry: an unfilled order is cancelled after 9 bars; a new signal on the same side replaces it.
- Indicators: stochastic 23/3/7, Bollinger bands 9 periods, 2.0 deviations, weighted price.
Backtest
The test was run on XAUUSD H1 in the "Every tick based on real ticks" mode, from July 2021 to September 2026, with a 1,000 USD deposit, 1:100 leverage and a fixed 0.01 lot. Real ticks cover about a quarter of that period; for the rest, the tester generated ticks from M1 data. The net profit was 2,453 USD (+245%), with a profit factor of 1.54, a recovery factor of 5.56 and a maximum equity drawdown of 23.9%. There were 213 trades: 116 buys, 66.4% of them winners, and 97 sells, 50.5% winners.
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Read the graph before using the EA. From July 2021 to June 2024 the balance grew from 1,000 to 1,365 USD, and 85% of the profit came after that, during the strong rise of gold. The last three months of the test were positive, and the balance ends 2.5% below its peak. The lot is fixed, so the percentage depends on the deposit: with 2,000 USD the same trades return half as much in percent.
Inputs
- InpLots — volume per trade (default 0.01).
- InpMagic — magic number of the EA's orders.
- InpBandPeriod — Bollinger band period.
- InpKPeriod, InpDPeriod, InpSlowing — stochastic periods.
- InpStopPct, InpTargetPct — stop and target, in percent of the entry price.
- InpExpiryBars — bars a pending order stays alive.
Attach the EA to an XAUUSD H1 chart. The defaults are the tested values. A backtest is not a promise of future results, so test it on a demo account with your broker's prices before trading real money.
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