The Fibonacci tool is often used in a very subjective way, which makes it less reliable. We take away the subjectivity by setting clear rules for how and when to use the Fibonacci tool, and how to build a powerful but simple Metatrader 5 EA using it.
This template has a trade execution module included, so you can start testing it right away!
You might also want to watch the full YouTube video on the Best Fibonacci strategy here to get an in-depth explanation of the pattern.
Step 0: Access the Strategy Concept Template [1 Min]
Click the button to load the trading bot directly onto your canvas:
Templates are for educational purposes only.
The template can run on all timeframes.
Your canvas should display these blocks. Check? Let's continue!
Step 1: Export the Trading Bot [1 Min]
Before diving into customization, export the trading bot with the upper right 'DOWNLOAD' button.
Step 2: Upload to MetaTrader 5 [4 Min]
Don’t know how? Refer to our help article How to Run Your Profectus Trading Bot in MetaTrader 5 (MT5).
Step 3: Understand the Logic [10 Min]
Initiate the variables. We start by putting the following variables in the Variables list. All are numbers and have a value of 0 by default:
high
low
highlow
highlowfib1
highlowfib2
highlowfib3
fib1
fib2
fib3
impulse
ATRmove
Run per candle. We start the EA by checking all the rules once per candle.
Trade rule for identifying a bullish move. Put a trade rule block with the following rule:
Candle low, Candle ID 5 < Candle low, Candle ID 1
Assign the move high and low to variables. Use 2 modify variable blocks to assign the high and low to the variables high and low.
High = Candle High, Candle ID 1
Low = Candle Low, Candle ID 5
Identify the Impulse using a Formula block. We use 2 simple calculations for this
impulse = high - low
ATRmove = Indicator Average True Range (period 14) * 4
Calculating the Fibs using 2 formula blocks. Formula block 1:
Highlow = high - low
Highlowfib1 = highlow * 0.382Highlowfib2 = highlow * 0.618
Highlowfib3 = highlow * 0.786
And for Formula block 2:
Fib1 = high - highlowfib1
Fib2 = high - highlowfib2
Fib3 = high - highlowfib3
Check if no open trades. Count trades block with 0 orders and 0 open trades.
Confirm Impulsive Move. Trade rule block checking if:
Impulse > ATRmove
Buy pending order block.
Open price: Custom price level, fib2
Stop loss: Custom price level, fib3
Take Profit: 300% of stoploss
Expiration: 6 hours
This is an example of a buy entry for the Best Fibonacci Strategy:
Step 4: Make It Your Own [10 Min]
You can adjust and experiment:
Add more strategy rules or include the Best Fibonacci components in your own strategies
EXPORT and see the differences.
Play around with timeframes and assets
EXPORT and see the differences.
Refine the rules to fit your own interpretation of the Best Fibonacci concept
EXPORT and see the differences.
Click the button to load the trading bot directly onto your canvas:
Templates are for educational purposes only.
The template can run on all timeframes.
Conclusion
The Best Fibonacci strategy is a take on how we use the popular .618 Fibonacci retracements in one of our trading bots. It's mechanical and universally applicable across all markets. Now it's your turn—apply the template, tweak the logic, and make it yours. 🚀