Description

Volatility Contraction Pattern (VCP) EA

Short Tagline: A breakout strategy based on Mark Minervini’s Volatility Contraction Pattern.

Short Description:
Volatility Contraction Pattern (VCP) EA is a fully automated breakout / volatility compression. Expert Advisor for MT4 and MT5. A breakout strategy based on Mark Minervini’s Volatility Contraction Pattern. Built-in risk controls and market filters keep execution disciplined across live and demo accounts.

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Overview

A breakout strategy based on Mark Minervini’s Volatility Contraction Pattern. It detects a series of progressively tighter pullbacks (contracting volatility) forming a coil, then enters on the breakout as volatility expands, capturing the release of compressed energy.

Features

• ATR(14) and ATR trend (contraction detection)
• Swing-based pullback measurement
• Volume (declining through contraction)
• Configurable stop-loss, take-profit, and trailing logic
• Session, spread, and news-time filters for disciplined execution
• One-trade-per-bar / duplicate-signal protection
• Clean, single-file MQL4 and MQL5 implementations
• No hidden logic — every input is exposed and documented
• No martingale, no grid, no hidden recovery logic

Trading Strategy

Entry logic: – Detect a base with 2-4 successive pullbacks, each shallower than the last (contracting range), with declining ATR and volume.

• Long: price breaks above the pivot high of the tightest final contraction with a volume/volatility expansion candle. Enter on the breakout close.
• Short: mirror for a top-side VCP in a downtrend.

Exit logic: – Exit on the measured move (base depth projected) or a close back into the base (failed breakout).

Stop-loss: SL below the low of the final (tightest) contraction — tight by design.

Take-profit: TP1 at 2R (base depth), TP2 trailed for the extended move.

Trailing stop: Trail behind new swing lows/highs as the move extends.

Break-even: Break-even at 1R.

Why it works: Very tight stops with high R:R potential.; Well-known professional pattern (strong marketing)..

Recommended Settings

• Timeframes: H1, H4, D1.
• Instruments: NAS100, US30, XAUUSD, EURUSD, GBPUSD.
• Account type: ECN/Raw spread accounts preferred
• Minimum recommended balance: $500+ (adjust lot sizing to your risk tolerance)
• VPS: Recommended for 24/5 uptime and consistent execution
• Risk management: Risk 1% per trade. Tight stops allow larger position size for the same risk. Max 3 open.

Supported Markets

Indices, gold, trending forex; adaptable to CFDs.

Supported Brokers

Compatible with any regulated MT4 or MT5 broker offering standard order execution (market or instant execution). Works with ECN, STP, and standard account types. No broker-specific dependencies.

Installation Guide

1. Download the .ex4 (MT4) or .ex5 (MT5) file from your purchase delivery.
2. Open MetaTrader, go to File → Open Data Folder.
3. Copy the file into MQL4/Experts (MT4) or MQL5/Experts (MT5).
4. Restart MetaTrader or right-click Expert Advisors in the Navigator and select Refresh.
5. Drag the EA onto the chart of your chosen symbol and timeframe.
6. Enable Allow live trading (and Allow DLL imports if prompted) in the Common tab.
7. Adjust inputs to match your risk profile, then click OK.
8. Confirm AutoTrading is enabled in the toolbar.

• Session filter: London and New York for intraday timeframes.
• Spread filter: Reject if spread > 2.5 pips / symbol threshold.
• News filter: Pause entries 15 minutes around high-impact news.
• Volatility filter: Core mechanism — require measurable ATR contraction through the base, then expansion on the breakout.

Risk Disclaimer

Trading forex and CFDs carries a high level of risk and may not be suitable for all investors. Past performance, backtest results, and simulated outcomes are not indicative of future results. This EA does not guarantee profits. Always test thoroughly on a demo account before deploying real capital, and never risk funds you cannot afford to lose.

Version

v1.0.0

Support

Support is provided through the marketplace messaging system. Please include your broker, symbol, timeframe, and EA version when reporting an issue.

Updates

Free updates are provided for bug fixes and compatibility improvements. Feature updates may be released as versioned upgrades.

FAQ

Q: Does this EA work on both MT4 and MT5?
A: Yes, separate optimized builds are provided for each platform.

Q: Can I run this on multiple pairs at once?
A: Yes, attach separate instances to separate chart/symbol combinations.

Q: Does it use martingale or grid recovery?
A: No. This is a pure signal-based strategy with defined risk per trade.

Q: What timeframe works best?
A: H1, H4, D1. for the cleanest signals, but the EA can run on other timeframes with adjusted inputs.

Q: Is a VPS required?
A: Not required, but strongly recommended for uninterrupted 24/5 operation.