Kilauea

Kilauea

Kilauea is an Expert Advisor (EA) for MetaTrader 5 that trades the Nasdaq 100 (NAS100). It is built to operate on the 5-minute timeframe and has been optimized around NAS100 liquidity characteristics.

The EA focuses on price inefficiencies called Fair Value Gaps (FVGs). When a qualifying five-bar pattern creates an imbalance, Kilauea monitors whether price re-enters that gap in liquid trading sessions (London and New York). If the context is favorable, the EA can open a trade immediately inside the gap or mark the setup to be evaluated on subsequent bars as a pending opportunity.

Kilauea is not a high-frequency system. It only trades when strict structural, timing, and risk criteria are satisfied. Extended periods without trades are normal. Patience and disciplined risk use are important.

1.         Safety First!

The EA embeds multiple controls to support safe and disciplined trading:

- Risk Management: choose between fixed lot size or dynamic sizing based on equity and stop-loss distance; risk per trade is capped.

- Emergency Stop: configure a maximum drawdown in money per position—if reached, the EA force-closes the trade.

- Session Control: trading is restricted to configurable London and New York kill zones to align with higher liquidity windows.

- News Filter: high-impact economic events pause trading to avoid abnormal volatility.

2.         What is covered by the Kilauea advisor?

Kilauea detects Fair Value Gaps using a five-bar evaluation and classifies them by the sequence of candle directions. The EA supports eight FVG pattern types (e.g., BuBuBu, BuBeBu, BuBuBe, BuBeBe, BeBeBe, BeBuBe, BeBeBu, BeBuBu).

After detection, the EA decides between immediate or pending execution. Entries are allowed only if additional conditions are met—such as price being inside the gap, the prior candle’s wick interacting with the gap, and session/time filters.

Position direction, stop-loss, and take-profit are computed from FVG boundaries and volatility/trend context. Stop-loss typically uses fractal swing or ATR-based distance; take-profit is derived from a configurable risk-reward ratio (RR).

3.         The input parameters.

You can configure parameters on the Inputs tab of the EA:

- Minimal FVG Size: the smallest gap size that qualifies for evaluation.

- Fixed Lot or Dynamic Risk (%): choose fixed lot or allow the EA to compute lot size from equity, risk %, and stop-loss.

- Minimum Lot: lower bound for position size as allowed by the broker.

- Maximum Risk (%): cap on risk per trade calculated on account equity.

- Maximum Drawdown (money): emergency stop per position.

- Risk-Reward Ratio (RR): determines TP as a multiple of the SL distance.

- Timeframe: default and required is M5.

- Moving Averages (Fast/Slow): parameters for trend/bias checks on higher or current timeframe.

- London Killzone (start/end): local time inputs to define the trading window.

- New York Killzone (start/end): local time inputs to define the trading window.

- Pattern Activation: enable/disable which FVG pattern types the EA is allowed to trade.

4.         Closing the trade

Positions are closed automatically when one of these applies:

- Take-profit is reached (per configured RR).

- Stop-loss is reached.

- Configured maximum drawdown per trade is exceeded.

- The FVG becomes invalid based on subsequent price action (e.g., the gap is nullified).

5.         Testing Results

Kilauea includes detailed internal logging for post-trade analysis and backtesting review. Because entries are selective, evaluation should focus on consistency of execution, drawdown behavior, and alignment with session rules rather than trade frequency.

Past performance does not guarantee future results. Test thoroughly on a demo account before using the EA in live trading.