Mean Reversion Gap Strategy Trading Bot

A sophisticated algorithmic trading system designed for prop firm challenges, implementing mean reversion strategies with advanced risk management and multi-timeframe analysis on MetaTrader 5.

Overview

The Mean Reversion Prop Firm EA is a professional-grade trading system that combines:

• Gap-based mean reversion strategy
• Multi-timeframe analysis (M5, M15, M30)
• 12 major forex pairs and commodities
• Advanced risk management with prop firm rules
• Real-time position management with trailing stops

The system is optimized for prop firm challenges with strict risk constraints and delivers consistent performance through robust technical analysis and disciplined trade execution.

Key Features

• Multi-Indicator Strategy:

  • EMA (360-period and 20-period)
  • RSI (20-period)
  • ATR (fast and slow periods)
  • Volume-weighted spread analysis

• Advanced Risk Management:

  • $50 fixed risk per trade
  • 1:5 risk-reward ratio
  • Daily loss limit (5% of equity)
  • Maximum drawdown protection (10%)
  • Spread monitoring and filtering

• Prop Firm Compliance:

  • Trading session management (Sunday-Friday)
  • Lagos time (GMT+1) based schedule
  • Max global trades limit
  • Trade journaling for verification

• Position Management:

  • Multi-stage trailing stops
  • Commodity-specific trailing (XAUUSD, USOIL, XAGUSD)
  • Profit-locking mechanism
  • Order expiration system

Installation

Prerequisites

• Python 3.8+
• MetaTrader 5 desktop application
• Active MT5 brokerage account

Installation Steps

1. Clone the repository:

   git clone https://github.com/Xtley001/Mean-Reversion-Gap-Strategy-Trading-Bot.git
   
   cd Mean-Reversion-Gap-Strategy-Trading-Bot
   

2. Create and activate virtual environment:

   python -m venv venv
   source venv/bin/activate  # Linux/Mac
   venv\Scripts\activate    # Windows

3. Install dependencies:

   pip install -r requirements.txt

4. Configure environment variables: Create a .env file with your MT5 credentials:

   MT5_ACCOUNT=your_account_number
   MT5_PASSWORD=your_password
   MT5_SERVER=your_broker_server

Configuration

All configuration parameters are set in config.py:

Trading Settings

Parameter	Default	Description
SYMBOLS	["XAUUSD", "BTCUSD", ...]	List of trading symbols
TIMEFRAMES	[5, 15, 30]	Timeframes in minutes (M5, M15, M30)
RISK_PER_TRADE	50	Dollar risk per trade
RISK_REWARD_RATIO	5	Risk-reward ratio (1:5)
MAX_GLOBAL_TRADES	15	Maximum simultaneous trades
MAX_TRADES_PER_SYMBOL_TF	1	Max trades per symbol/timeframe
MIN_BARS_BETWEEN_TRADES	5	Minimum bars between trades
LIMIT_ORDER_DISTANCE	2.0	Limit order distance in pips

Strategy Parameters

Parameter	Default	Description
MIN_MA_GAP	0.6	Minimum EMA gap percentage
MA1_PERIOD	360	Slow EMA period
MA2_PERIOD	20	Fast EMA period
ATR1_PERIOD	10	Fast ATR period
ATR2_PERIOD	20	Slow ATR period
RSI_PERIOD	20	RSI period

Risk Management

Parameter	Default	Description
DAILY_LOSS_PERCENT	5.0	Max daily loss (%)
MAX_DRAWDOWN_PERCENT	10.0	Max account drawdown (%)
MIN_LOT_SIZE	0.01	Minimum trade size
MAX_LOT_SIZE	1.0	Maximum trade size
MAX_ALLOWED_LOT_SIZE	1.0	User-defined max lot size
STOP_LOSS_ATR_FACTOR	1.5	ATR multiplier for stop loss
TRAILING_STOP_ATR_FACTOR	1.0	ATR multiplier for trailing stop

Session Management

Parameter	Default	Description
ENABLE_SESSION	True	Enable trading sessions
SUNDAY_OPEN_HOUR	22	Sunday session start hour (Lagos)
SUNDAY_OPEN_MIN	15	Sunday session start minute
DAILY_CLOSE_HOUR	21	Daily close hour (Friday)
DAILY_CLOSE_MIN	45	Daily close minute

Usage

Running the Trading Engine

python main.py

Sample Output

2025-07-03 05:53:08,987 - Main - INFO - Starting Xtley 001 Gap Trading System
2025-07-03 05:53:08,987 - Main - INFO - Initializing trading engine
2025-07-03 05:53:17,086 - TradingEngine - INFO - New trading day: 2025-07-03
2025-07-03 05:53:18,741 - TradingEngine - INFO - SELL LIMIT placed on ETHUSD TF:15 Lots:0.85 Magic:16010
2025-07-03 05:53:19,367 - TradingEngine - INFO - SELL LIMIT placed on USOIL TF:15 Lots:0.43 Magic:17010
2025-07-03 05:53:21,096 - TradingEngine - INFO - BUY LIMIT placed on EURUSD TF:5 Lots:0.12 Magic:15000

Trade Journal

Trades are logged to TradeJournal.csv with the following columns:

Time,Symbol,Type,Volume,Price,Profit,Comment,Magic,SL,TP
2025-07-03 05:53:18,ETHUSD,SELL,0.85,1850.32,0,Xtley 001 Gap EA,16010,1845.50,1875.25

Logging and Output

The system provides detailed logging with different severity levels:

• INFO: System status, trade entries/exits
• WARNING: Risk limits approached, order failures
• ERROR: Connection issues, calculation errors

Logs are written to:

• Console output
• trading_system.log file
• TradeJournal.csv (trade-specific details)

Contribution Guidelines

We welcome contributions! Please follow these steps:

1. Fork the repository
2. Create a new feature branch (git checkout -b feature/your-feature)
3. Commit your changes (git commit -am 'Add some feature')
4. Push to the branch (git push origin feature/your-feature)
5. Create a new Pull Request

Coding Standards

• Follow PEP 8 style guide
• Include docstrings for all functions
• Add comments for complex logic
• Write unit tests for new features

License

This project is licensed under the MIT License - see the LICENSE file for details.

Support

For support, bug reports, or feature requests:

• 📧 Email: olubelachristleygmail.com
• 🐛 GitHub Issues: Open an issue

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Disclaimer: This software is for educational purposes only. Trading financial markets involves significant risk and is not suitable for all investors. Past performance is not indicative of future results. The authors assume no liability for any trading losses incurred while using this software.