XAUUSD Double Bottom Trading Strategy

A production-ready desktop trading application that replicates TradingView Pine Script strategy logic with MetaTrader 5 integration.

🎯 Overview

This application implements a LONG ONLY Double Bottom pattern trading strategy for XAUUSD (Gold) on the 1-hour timeframe. It faithfully reproduces Pine Script trading logic while providing automated execution capabilities through MetaTrader 5.

Key Features

• ✅ Pattern Detection: Automated Double Bottom pattern recognition
• ✅ Risk Management: Fixed % risk per trade with position sizing
• ✅ MT5 Integration: Real-time data and order execution
• ✅ Desktop UI: PySide6-based trading dashboard
• ✅ Demo Mode: Test strategies safely before live trading
• ✅ Comprehensive Logging: All decisions and trades logged
• ✅ State Persistence: Trade history and positions saved

📋 Requirements

• Python: 3.10 or higher
• MetaTrader 5: Installed and configured
• Operating System: Windows (MT5 Python API requirement)

🚀 Installation

1. Clone or Download

cd C:\Users\mutaf\TRADING

2. Create Virtual Environment

python -m venv venv
.\venv\Scripts\Activate.ps1

3. Install Dependencies

pip install -r requirements.txt

4. Configure MT5 Settings

Edit config/config.yaml:

mt5:
  login: YOUR_ACCOUNT_NUMBER  # Or null to use current login
  password: YOUR_PASSWORD      # Or null
  server: YOUR_BROKER_SERVER   # Or null
  symbol: "XAUUSD"
  timeframe: "H1"

🎮 Usage

Running the Application

python src/main.py

First-Time Setup

1. Connect to MT5

   • Ensure MetaTrader 5 is running
   • Log in to your demo/live account
   • Click "Start Trading" in the application

2. Configure Strategy

   • Go to "Settings" tab
   • Adjust risk %, ATR multiplier, R:R ratio
   • Save settings

3. Monitor Trading

   • "Market Data" tab shows current price and indicators
   • "Position" tab displays open trades
   • "History" tab shows past performance
   • "Logs" tab shows all decisions

Demo vs Live Trading

⚠️ Always test in demo mode first!

mode:
  demo_mode: true      # Keep true for demo account
  auto_trade: false    # Set true to enable automatic trading

🏗️ Architecture

Clean Architecture Design

src/
├── engines/                    # Core trading logic
│   ├── market_data_service.py  # MT5 data fetching
│   ├── indicator_engine.py     # EMA, ATR calculations
│   ├── pattern_engine.py       # Double Bottom detection
│   ├── strategy_engine.py      # Entry/exit conditions
│   ├── risk_engine.py          # Position sizing
│   ├── execution_engine.py     # MT5 order execution
│   └── state_manager.py        # State persistence
├── ui/                         # User interface
│   └── main_window.py          # PySide6 GUI
├── utils/                      # Utilities
│   ├── config.py               # Configuration management
│   └── logger.py               # Logging system
└── main.py                     # Application entry point

Trading Strategy Logic

Entry Conditions (ALL must be true):

1. ✓ Valid Double Bottom pattern detected
2. ✓ Close breaks above neckline
3. ✓ Close > EMA50 (trend filter)
4. ✓ Breakout candle has momentum (ATR-based)
5. ✓ Cooldown period respected

Exit Conditions:

• Stop Loss: ATR-based or swing low
• Take Profit: Risk × R:R ratio

Risk Management

risk_amount = equity × risk_percent
position_size = risk_amount / abs(entry_price - stop_loss)

🧪 Testing

Run Unit Tests

pytest tests/ -v

Test Individual Engines

# Test indicator engine
python src/engines/indicator_engine.py

# Test pattern engine
python src/engines/pattern_engine.py

# Test strategy engine
python src/engines/strategy_engine.py

📊 Backtesting (Offline Validation)

To validate against historical data:

1. Export XAUUSD H1 data from TradingView to CSV
2. Place CSV in data/historical/
3. Run backtest script:

python scripts/backtest.py --data data/historical/XAUUSD_H1.csv

📝 Configuration Reference

Strategy Parameters

Parameter	Default	Description
risk_percent	1.0%	Risk per trade
atr_multiplier_stop	2.0	ATR multiplier for SL
risk_reward_ratio	2.0	R:R for TP
momentum_atr_threshold	0.5	Min momentum filter
cooldown_hours	24	Hours between trades
equality_tolerance	2.0%	Double Bottom tolerance

🔐 Security & Safety

Safety Features

• ✅ Demo mode by default
• ✅ Manual confirmation for auto-trade
• ✅ Maximum drawdown limits
• ✅ Position size constraints
• ✅ Cooldown periods between trades

Best Practices

1. Always start in demo mode
2. Validate with historical data first
3. Use small risk % for live trading (0.5-1%)
4. Monitor the first 10-20 trades closely
5. Never leave auto-trade unattended initially

📈 Performance Monitoring

Metrics Tracked

• Total trades
• Win rate %
• Total profit/loss
• Average win/loss
• Profit factor
• Maximum drawdown

Logs Location

• System logs: logs/system.log
• Trade logs: logs/trades.log
• State file: data/state.json

🐛 Troubleshooting

Common Issues

1. "MT5 initialization failed"

   • Ensure MetaTrader 5 is running
   • Check you're logged in to an account
   • Verify Python and MT5 are same architecture (64-bit)

2. "Symbol XAUUSD not found"

   • Enable XAUUSD in MT5 Market Watch
   • Verify symbol name with your broker

3. "Insufficient data"

   • Wait for more bars to load
   • Requires 250+ bars for EMA200

4. UI not responding

   • Check logs for errors
   • Restart application
   • Verify all dependencies installed

🔄 Updates & Maintenance

Updating Configuration

# Edit config
notepad config\config.yaml

# Restart application to apply changes

Viewing Logs

# System logs
Get-Content logs\system.log -Tail 50

# Trade logs
Get-Content logs\trades.log -Tail 20

📚 Additional Resources

Pine Script Reference

The strategy logic is based on TradingView Pine Script specifications. All indicator calculations match TradingView's implementation:

• EMA: ta.ema(source, length)
• ATR: ta.atr(length)
• Pivot Lows: ta.pivotlow(source, leftbars, rightbars)

MT5 Python API Documentation

• MetaTrader 5 Python Documentation

⚠️ Disclaimer

This software is for educational purposes only.

• Trading involves substantial risk of loss
• Past performance does not guarantee future results
• Always test thoroughly in demo mode
• Never risk more than you can afford to lose
• The authors assume no liability for trading losses

📄 License

This project is provided as-is for personal use.

🤝 Support

For issues or questions:

1. Check the logs in logs/ directory
2. Review configuration in config/config.yaml
3. Ensure all dependencies are installed
4. Verify MT5 connection is active

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Version: 1.0.0
Last Updated: January 2026
Trading Mode: LONG ONLY
Instrument: XAUUSD
Timeframe: 1H