EA1/README.md

# EA1 — Simple Moving Average 12/26 Crossover Bot

**Timeframe:** M15 (15-Minute)  
**Strategy:** SMA 12 / SMA 26 Crossover  
**Platform:** MetaTrader 5 (MQL5)

---

## Indicator Setup

Two Simple Moving Averages (SMA) are applied to the **closing price** of each 15-minute candle:

| Line | Period | Role |
|------|--------|------|
| Fast SMA | 12 | Short-term momentum |
| Slow SMA | 26 | Long-term trend direction |

When the two lines **cross each other**, a trade signal is generated.

---

## Trade Entry Logic

Signals are confirmed only on **fully closed M15 bars** (no repainting).  
The EA compares the last two closed bars to detect a fresh crossover.

### 🟢 BUY Signal
**Condition:** SMA 12 crosses **above** SMA 26

```
Bar [2]:  SMA12  <=  SMA26   (fast was below or equal to slow)
Bar [1]:  SMA12  >   SMA26   (fast is now above slow)
```

**Action:**
1. Close any open **SELL** position immediately.
2. Open a **BUY** market order at the current **Ask** price.
3. Attach Stop Loss and Take Profit to the order (see below).

---

### 🔴 SELL Signal
**Condition:** SMA 12 crosses **below** SMA 26

```
Bar [2]:  SMA12  >=  SMA26   (fast was above or equal to slow)
Bar [1]:  SMA12  <   SMA26   (fast is now below slow)
```

**Action:**
1. Close any open **BUY** position immediately.
2. Open a **SELL** market order at the current **Bid** price.
3. Attach Stop Loss and Take Profit to the order (see below).

---

## Stop Loss & Take Profit

Every trade is opened with a **fixed pip-based** Stop Loss and Take Profit calculated from the entry price.

| Level | Pips | Direction | Purpose |
|-------|------|-----------|---------|
| **Take Profit** | 1000 pips | In trade direction | Lock in profit when price moves favourably |
| **Stop Loss**   | 500 pips  | Against trade direction | Limit loss if price moves the wrong way |

### BUY Trade Levels

```
Entry  =  Ask price

Take Profit  =  Ask  +  1000 pips   (price rises 1000 pips → trade closes in profit)
Stop Loss    =  Ask  -   500 pips   (price drops  500 pips → trade closes at a loss)
```

### SELL Trade Levels

```
Entry  =  Bid price

Take Profit  =  Bid  -  1000 pips   (price drops 1000 pips → trade closes in profit)
Stop Loss    =  Bid  +   500 pips   (price rises  500 pips → trade closes at a loss)
```

---

## Trade Exit Logic

A trade is closed under **one of three conditions**:

| Condition | Type | Triggered By |
|-----------|------|-------------|
| Price hits **Take Profit** level | Profit exit | Broker / MT5 automatically |
| Price hits **Stop Loss** level | Loss exit | Broker / MT5 automatically |
| **Opposite crossover** signal fires | Signal exit | EA closes trade before opening new one |

---

## Visual Flow

```
M15 Chart
─────────────────────────────────────────────────────►  Time

                    SMA12 crosses ABOVE SMA26
                              │
                              ▼
                      ┌───────────────┐
                      │   BUY ORDER   │
                      │  Entry: Ask   │
                      │  TP: +1000pip │
                      │  SL:  -500pip │
                      └───────┬───────┘
                              │
           ┌──────────────────┼──────────────────┐
           ▼                  ▼                   ▼
     Price hits TP      Price hits SL    SMA12 crosses below
     (profit +1000p)   (loss  -500p)    (EA closes → SELL opens)


                    SMA12 crosses BELOW SMA26
                              │
                              ▼
                      ┌───────────────┐
                      │  SELL ORDER   │
                      │  Entry: Bid   │
                      │  TP: -1000pip │
                      │  SL:  +500pip │
                      └───────┬───────┘
                              │
           ┌──────────────────┼──────────────────┐
           ▼                  ▼                   ▼
     Price hits TP      Price hits SL    SMA12 crosses above
     (profit +1000p)   (loss  -500p)    (EA closes → BUY opens)
```

---

## Input Parameters

| Parameter | Default | Description |
|-----------|---------|-------------|
| `FastPeriod` | 12 | Period of the fast SMA |
| `SlowPeriod` | 26 | Period of the slow SMA |
| `LotSize` | 0.1 | Volume per trade |
| `TakeProfitPips` | 1000 | Take Profit distance in pips |
| `StopLossPips` | 500 | Stop Loss distance in pips |
| `PipSize` | 0.0001 | Pip value (`0.0001` for FX; `0.01` for JPY pairs) |
| `MagicNumber` | 112600 | Unique ID to identify EA trades |

---

## Notes

- **One trade at a time** — the EA never opens a second trade in the same direction.
- **New bar logic** — signals are only evaluated once per new M15 candle to prevent noise.
- **JPY pairs** — change `PipSize` to `0.01` when trading symbols like USDJPY or EURJPY.
- Always **backtest** in MetaTrader 5 Strategy Tester before running on a live account.