MT5-EA-Sniper-Strategy/docs/PRD.md

MT5 Expert Advisor - Sniper Strategy PRD

Project Overview

Product Name

MT5 Sniper Strategy Expert Advisor (OB + BOS + Liquidity Sweep + FVG)

Product Vision

Develop a sophisticated MT5 Expert Advisor that implements institutional trading concepts to achieve consistent profitability across all forex pairs and Gold (XAUUSD) using advanced market structure analysis.

Target Performance Metrics

• Win Rate: 50% to 60%
• Risk per Trade: 1% of account balance
• Risk-Reward Ratio: 2:1 to 3:1 minimum
• Maximum Drawdown: <15%
• Monthly Return Target: 8-15%

Core Strategy Components

1. Market Structure Analysis

• Order Blocks (OB): Identify institutional supply/demand zones
• Break of Structure (BOS): Detect trend changes and continuation patterns
• Liquidity Sweeps: Identify stop-loss hunting patterns
• Fair Value Gaps (FVG): Detect imbalances for entry opportunities

2. Multi-Timeframe Analysis

• Primary Timeframe: 1M (Entry signals)
• Bias Timeframes: 15M and H4 (Trend direction)
• Structure Validation: Daily and Weekly (Major levels)

Functional Requirements

1. Trading Session Management

Asia Session

• Time Range: 07:00 - 16:00 Cambodia Time (GMT+7)
• Characteristics: Range-bound, lower volatility
• Strategy Focus: Liquidity sweep reversals

London Session

• Time Range: 15:00 - 23:59 Cambodia Time (GMT+7)
• Characteristics: High volatility, strong trends
• Strategy Focus: BOS continuation trades

New York Session

• Time Range: 20:00 - 23:59 Cambodia Time (GMT+7)
• Characteristics: High volume, institutional activity
• Strategy Focus: Order block reactions

2. Entry Logic Requirements

Primary Entry Conditions (All Must Be Met)

1. Liquidity Sweep Detection

   • Price sweeps above/below equal highs/lows
   • Minimum sweep distance: 5-10 pips
   • Rejection candle formation required

2. Break of Structure Confirmation

   • Clear BOS in opposite direction to sweep
   • Structure break on 1M timeframe
   • Confirmation within 3 candles

3. Fair Value Gap Validation

   • FVG exists between BOS and Order Block
   • Minimum gap size: 3 pips
   • Gap not filled by subsequent price action

4. Order Block Identification

   • Fresh OB in direction of structure shift
   • OB formed within last 20 candles
   • Clear rejection from OB zone

Entry Execution

• Entry Point: OB zone or FVG midpoint
• Entry Method: Market order or pending order
• Maximum Slippage: 2 pips

3. Risk Management System

Stop Loss Calculation

• Method 1: Just beyond Order Block (5-10 pips)
• Method 2: Beyond liquidity sweep wick (3-8 pips)
• Maximum SL: 50 pips
• Minimum SL: 10 pips

Take Profit Calculation

• Primary TP: 2:1 to 3:1 risk-reward ratio
• Secondary TP: Next HTF structure level
• Partial Profit: 50% at 1:1, remainder at 2:1 or 3:1

Position Sizing

• Risk per Trade: 1% of account balance
• Maximum Positions: 3 per symbol per day
• Maximum Total Positions: 10 across all symbols

4. Advanced Features

Grok AI Integration

• Fundamental Analysis: Economic calendar integration
• Sentiment Analysis: Market sentiment scoring
• News Impact: High-impact news filtering
• AI Confidence Score: Trade quality assessment (1-10)

Data Processing Pipeline

• Real-time Data: Price action analysis
• Historical Data: Pattern recognition training
• Market Conditions: Volatility and trend assessment
• Performance Analytics: Trade outcome analysis

Technical Requirements

1. MQL5 Implementation Standards

• Code Structure: Modular design with separate classes
• Error Handling: Comprehensive try-catch blocks
• Logging: Detailed trade and system logs
• Performance: Optimized for real-time execution

2. Configuration Parameters

Core Settings

MaxTradesPerDay = 3          // Maximum trades per symbol per day
RiskPercent = 1.0            // Risk percentage per trade
MinRR = 2.0                  // Minimum risk-reward ratio
UseTimeFilter = true         // Enable session filtering

Session Settings

AsiaStart = "07:00"          // Asia session start (Cambodia Time GMT+7)
AsiaEnd = "16:00"            // Asia session end (Cambodia Time GMT+7)
LondonStart = "15:00"        // London session start (Cambodia Time GMT+7)
LondonEnd = "23:59"          // London session end (Cambodia Time GMT+7)
NYStart = "20:00"            // New York session start (Cambodia Time GMT+7)
NYEnd = "23:59"              // New York session end (Cambodia Time GMT+7)

Symbol Configuration

SymbolsToTrade = ["EURUSD", "GBPUSD", "USDJPY", "USDCHF", "AUDUSD", "USDCAD", "NZDUSD", "XAUUSD"]

3. Backtesting Framework

• Historical Data: Minimum 2 years of tick data
• Testing Period: 2020-2024
• Validation Method: Walk-forward analysis
• Optimization: Genetic algorithm for parameter tuning

4. Performance Monitoring

• Real-time Metrics: Win rate, profit factor, drawdown
• Daily Reports: Trade summary and performance analysis
• Weekly Analysis: Strategy effectiveness review
• Monthly Optimization: Parameter adjustment recommendations

User Interface Requirements

1. Chart Visualization

• Order Blocks: Rectangular zones with transparency
• Fair Value Gaps: Shaded areas with distinct colors
• Break of Structure: Arrows and labels
• Liquidity Sweeps: Icons (🔺/🔻) with annotations
• Entry/SL/TP: Horizontal lines with labels

2. Information Panel

• Current Session: Active trading session display
• AI Sentiment: Grok AI analysis summary
• Trade Status: Active positions and pending orders
• Performance Metrics: Real-time statistics

Quality Assurance

1. Testing Requirements

• Unit Testing: Individual function validation
• Integration Testing: Component interaction testing
• Performance Testing: Speed and resource usage
• Stress Testing: High-volume market conditions

2. Validation Methodology

• Strategy Validation: Historical performance analysis
• Risk Validation: Maximum drawdown testing
• Robustness Testing: Different market conditions
• Forward Testing: Live market validation

Compliance and Risk Management

1. Regulatory Compliance

• Broker Compatibility: Major MT5 brokers
• Execution Standards: FIFO compliance where required
• Risk Disclosure: Clear risk warnings
• Documentation: Comprehensive user manual

2. Risk Controls

• Maximum Risk: 1% per trade, 5% per day
• Emergency Stop: Account equity protection
• News Filter: High-impact event avoidance
• Market Hours: Respect trading session limits

Success Criteria

1. Performance Targets

• Achieve 50-60% win rate over 6-month period
• Maintain 2:1 minimum risk-reward ratio
• Generate consistent monthly returns of 8-15%
• Keep maximum drawdown below 15%

2. Technical Targets

• Execute trades within 100ms of signal generation
• Maintain 99.9% uptime during trading hours
• Process AI analysis within 5 seconds
• Handle minimum 10 concurrent symbol monitoring

Timeline and Milestones

Phase 1: Core Development (Weeks 1-2)

• Basic EA structure and initialization
• Core trading logic implementation
• Risk management system

Phase 2: Advanced Features (Weeks 3-4)

• Multi-timeframe analysis
• Session management
• Chart visualization

Phase 3: AI Integration (Weeks 5-6)

• Grok AI integration
• Data processing pipeline
• Performance analytics

Phase 4: Testing and Optimization (Weeks 7-8)

• Backtesting framework
• Strategy validation
• Performance optimization

This PRD serves as the foundation for implementing a sophisticated MT5 Expert Advisor that combines institutional trading concepts with modern AI analysis to achieve consistent trading performance.