ICT/SMC Expert Advisor for MetaTrader 5

Overview

This Expert Advisor (EA) implements Smart Money Concepts (SMC) and Inner Circle Trader (ICT) strategies specifically optimized for prop firm challenges like FTMO, MyForexFunds, and others.

Key Features

• Fair Value Gap (FVG) Detection: Automatically identifies price imbalances where institutions are likely to re-enter
• Order Block (OB) Identification: Detects institutional order zones for high-probability entries
• Liquidity Sweep Detection: Identifies stop hunts before major price reversals
• Market Structure Analysis: Tracks bullish/bearish structure (Higher Highs/Lower Lows)
• FTMO-Compliant Risk Management: Built-in daily loss limits, max drawdown protection, and trade limits
• Automated Position Sizing: Calculates lot size based on risk percentage
• Trailing Stop: Protects profits as trades move in your favor

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Installation

1. Download the EA: Save ICT_SMC_EA.mq5 to your computer

2. Open MetaTrader 5

3. Navigate to Data Folder:

   • Click File → Open Data Folder
   • Go to MQL5 → Experts

4. Copy the EA: Place ICT_SMC_EA.mq5 in the Experts folder

5. Compile:

   • Open MetaEditor (F4 in MT5)
   • Open ICT_SMC_EA.mq5
   • Click Compile (F7)
   • Fix any errors if they appear

6. Attach to Chart:

   • In MT5, drag the EA from Navigator onto your chart
   • Click "Allow Algo Trading" when prompted
   • Configure settings (see below)

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Strategy Logic

1. Fair Value Gap (FVG)

A Fair Value Gap occurs when price moves so quickly that it creates an imbalance:

Bullish FVG: Candle 3's low > Candle 1's high (gap up)
Bearish FVG: Candle 3's high < Candle 1's low (gap down)

Trading Logic: Price tends to return to fill these gaps. The EA enters trades when price retraces into an FVG zone.

2. Order Blocks (OB)

Order blocks are the last opposite-colored candle before a strong price move:

Bullish OB: Last red candle before price rallies
Bearish OB: Last green candle before price drops

Trading Logic: These zones represent where institutions placed large orders. Price often reacts when returning to these levels.

3. Liquidity Sweeps

Institutions "hunt" stop losses before reversing:

Bullish Sweep: Price briefly drops below recent lows, then reverses up
Bearish Sweep: Price briefly rises above recent highs, then reverses down

Trading Logic: After a sweep, the EA looks for entries in the opposite direction.

4. Market Structure

The EA analyzes market structure to determine trend:

Bullish: Higher Highs + Higher Lows
Bearish: Lower Highs + Lower Lows

Trading Logic: Only takes trades aligned with current structure.

5. Entry Conditions

Long Trade Requirements:

1. Bullish market structure detected
2. Liquidity sweep to the downside
3. Price retraces into bullish FVG or Order Block
4. Risk limits not breached

Short Trade Requirements:

1. Bearish market structure detected
2. Liquidity sweep to the upside
3. Price retraces into bearish FVG or Order Block
4. Risk limits not breached

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Configuration Settings

Risk Management (FTMO Compliance)

RiskPercent = 1.0          // Risk 1% per trade (recommended for FTMO)
MaxDailyLoss = 5.0         // Stop trading if daily loss reaches 5%
MaxTotalLoss = 10.0        // Stop trading if total loss reaches 10%
MaxTradesPerDay = 5        // Maximum 5 trades per day
UseTrailingStop = true     // Enable trailing stop for profit protection

FTMO Challenge Rules:

• Phase 1: 10% profit target, 10% max loss, 5% daily loss limit
• Phase 2: 5% profit target, same loss limits
• Recommendation: Keep RiskPercent = 1.0 and MaxDailyLoss = 4.0 for safety buffer

ICT/SMC Settings

FVG_MinPoints = 10              // Minimum gap size to be considered valid
OrderBlock_Lookback = 50        // How many candles to scan for order blocks
LiquiditySweep_Lookback = 20    // Bars to check for swing highs/lows
LiquiditySweep_Buffer = 5       // Points beyond swing to confirm sweep

Optimization Tips:

• Lower timeframes (M5-M15): Use smaller FVG_MinPoints (5-10)
• Higher timeframes (H1-H4): Use larger FVG_MinPoints (15-30)

Trade Management

RiskRewardRatio = 2.0           // Minimum 1:2 risk-reward
TrailingStop_Points = 100       // Trail by 100 points (10 pips for 5-digit)
TrailingStop_Step = 10          // Move SL when profit increases by 10 points

Strategy Filters

TradeOnlyHigherTimeframe = true    // Use HTF for market structure
HTF_Timeframe = PERIOD_H4          // Higher timeframe (H4 recommended)
SpreadLimit = 20                   // Max spread in points (2 pips for 5-digit)
TradingStartTime = "00:00"         // Start trading at midnight
TradingEndTime = "23:59"           // Trade all day

Best Practice:

• For scalping (M1-M5): Set HTF_Timeframe = PERIOD_M15 or PERIOD_H1
• For swing trading (H1-H4): Set HTF_Timeframe = PERIOD_H4 or PERIOD_D1

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Recommended Settings by Timeframe

M5 Chart (Scalping)

RiskPercent = 0.5
FVG_MinPoints = 5
OrderBlock_Lookback = 30
HTF_Timeframe = PERIOD_M15
RiskRewardRatio = 1.5

M15 Chart (Intraday)

RiskPercent = 1.0
FVG_MinPoints = 10
OrderBlock_Lookback = 50
HTF_Timeframe = PERIOD_H1
RiskRewardRatio = 2.0

H1 Chart (Swing)

RiskPercent = 1.5
FVG_MinPoints = 20
OrderBlock_Lookback = 100
HTF_Timeframe = PERIOD_H4
RiskRewardRatio = 3.0

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Dashboard Information

The EA displays real-time information on your chart:

========== ICT/SMC EA ==========
Status: SCANNING
--------------------------------
Balance: 10000.00
Equity: 10150.00
Daily P/L: 150.00 (1.50%)
Trades Today: 2/5
--------------------------------
Market Structure: BULLISH
FVGs Detected: 3
Order Blocks: 5
Open Positions: 1
================================

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Testing & Optimization

Backtesting

1. Open Strategy Tester (Ctrl+R)
2. Select ICT_SMC_EA.ex5
3. Choose your symbol (e.g., EURUSD)
4. Select timeframe (M15 or H1 recommended)
5. Date range: At least 3-6 months of data
6. Click Start

Important: Use "Every tick based on real ticks" for accurate results

Optimization

To find best settings for your pair/timeframe:

1. In Strategy Tester, check Optimization
2. Select parameters to optimize:
   • RiskPercent (0.5 to 2.0)
   • FVG_MinPoints (5 to 30)
   • RiskRewardRatio (1.5 to 3.0)
3. Click Start
4. Review results by Profit Factor and Max Drawdown

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Risk Disclosure

Important Notes:

1. Past Performance ≠ Future Results: Backtesting results do not guarantee future profitability
2. Demo First: Always test thoroughly on demo account before live trading
3. Prop Firm Rules: Ensure EA settings comply with your specific prop firm's rules
4. Market Conditions: Strategy performance varies with market volatility and conditions
5. Monitoring Required: Check EA regularly, especially during news events

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Best Practices for FTMO

1. Conservative Risk

• Use 0.5-1% risk per trade
• Never exceed 3-4 trades per day
• Stop trading after 2 consecutive losses

2. Optimal Timeframes

• Best: M15 and H1 charts
• Avoid: M1 (too much noise) and Daily (too slow)

3. Best Trading Sessions

• London Session (08:00-12:00 GMT): High volatility, clear trends
• New York Session (13:00-17:00 GMT): Good liquidity
• Avoid: Asian session (low volatility, fake breakouts)

4. Best Currency Pairs

• Major Pairs: EURUSD, GBPUSD, USDJPY (tight spreads, good liquidity)
• Avoid: Exotic pairs (wide spreads, unpredictable moves)

5. News Awareness

• Check economic calendar daily
• Disable EA 30 minutes before high-impact news (NFP, FOMC, CPI)
• Re-enable after price settles (30-60 minutes after)

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Troubleshooting

EA Not Opening Trades

1. Check Logs: View Experts tab for error messages
2. Verify Settings: Ensure risk limits haven't been hit
3. Spread Too High: Increase SpreadLimit parameter
4. No Setup: ICT setups don't occur every day - be patient
5. AutoTrading: Ensure "Algo Trading" button is enabled (green)

EA Losing Money

1. Review Backtest: Test on 3-6 months of historical data
2. Optimize Settings: Different pairs need different settings
3. Market Conditions: Some periods don't suit this strategy
4. Reduce Risk: Lower RiskPercent to 0.5%

Compilation Errors

• Error: Undeclared identifier: Check MQL5 version (update MT5)
• Error: Invalid parameters: Verify input values are within valid ranges

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Support & Updates

For questions, issues, or suggestions:

• Review MQL5 documentation: https://www.mql5.com/en/docs
• ICT YouTube Channel: Search "Inner Circle Trader" for strategy education
• SMC Resources: https://ftmo.com/en/how-to-trade-smart-money-concepts-smc/

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Version History

v1.00 (2025-11-04)

• Initial release
• Fair Value Gap detection
• Order Block identification
• Liquidity sweep recognition
• FTMO-compliant risk management
• Trailing stop functionality
• Real-time dashboard

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License

This EA is provided for educational purposes. Use at your own risk. No guarantees of profitability.

Developed with ICT/SMC principles for prop firm traders

Good luck with your FTMO challenge!