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Trend Pullback EA Template for MetaTrader 5

The Trend Pullback strategy combines the best of trend following and mean reversion: it identifies the trend direction using a 200 EMA, then enters on temporary RSI pullbacks for better entry prices. This free EA template includes ATR-based risk management, an optional ADX trend strength filter, and a max-distance-from-EMA safety check. Best for EURUSD, GBPUSD, and AUDUSD on H1 to D1 timeframes. Build it in AlgoStudio without coding and export a production-ready MQL5 Expert Advisor in minutes.

What Is a Trend Pullback Strategy?

A Trend Pullback strategy follows the old trading adage: “buy the dip in an uptrend, sell the rally in a downtrend.” Instead of entering at the crossover (when the trend starts), it waits for the trend to establish itself and then enters on a temporary retracement. This gives you a better entry price and a tighter stop loss compared to entering at the trend signal itself.

The template uses two indicators working together: the 200 EMA defines the trend direction (price above = uptrend, price below = downtrend), and the RSI(14) identifies pullbacks within that trend. When the RSI dips below 40 in an uptrend, it signals a buying opportunity. When the RSI rises above 60 in a downtrend, it signals a selling opportunity.

This combination is powerful because it solves the two biggest problems with simple trend-following: late entries (buying at the top of a move) and wide stop losses (far from the entry point). By waiting for a pullback, you enter closer to support in an uptrend or resistance in a downtrend, keeping your risk tight.

How This EA Template Works

BUY SIGNAL: Price is above 200 EMA (uptrend) and RSI(14) drops below 40 (pullback)
SELL SIGNAL: Price is below 200 EMA (downtrend) and RSI(14) rises above 60 (pullback)
EXIT: Stop loss at 1.5x ATR(14) or take profit at 2:1 risk-reward ratio

The max distance from EMA filter (default 2%) prevents entering when price has already moved too far from the EMA. If EURUSD is 3% above the 200 EMA, the pullback may not be deep enough to offer a good entry — the market may be overextended and due for a larger correction, not just a pullback.

The optional ADX filter (threshold 25) ensures a genuine trend exists before looking for pullbacks. Without it, the strategy may interpret sideways choppy price action as a “trend” simply because price is above or below the EMA. ADX measures trend strength regardless of direction, filtering out low-conviction setups.

Default Parameters

These defaults work well on EURUSD, GBPUSD, and AUDUSD on H1 and H4. All parameters are exported as input variables so you can optimize them in the MT5 Strategy Tester.

ParameterValueType
Trend EMA Period200Indicator
Pullback RSI Period14Indicator
RSI Pullback Level40 (buy) / 60 (sell)Threshold
Max Distance from EMA2.0%Filter
Stop Loss1.5x ATR(14)ATR-based
Take Profit2:1 R:RRisk-reward
ADX Filter25 (optional)Filter
Position Sizing1% risk per tradeRisk

How to Build This EA Without Coding

1. Create a new project in AlgoStudio

Sign up for free (no credit card required) and click “New Project”. Name your project “Trend Pullback Strategy” and open the visual builder canvas.

2. Add the Trend Pullback entry strategy block

Drag a Trend Pullback entry strategy block onto the canvas. Set the trend EMA to 200, the RSI period to 14, and the pullback level to 40. The block automatically calculates the opposite pullback level (60) for sell signals. Set the max distance from EMA to 2%.

3. Configure risk management and ADX filter

Set the stop loss to 1.5x ATR(14), take profit to 2:1 risk-reward, and position sizing to 1% risk per trade. Enable the ADX filter with a threshold of 25 to ensure you only trade when a genuine trend exists. This is optional but strongly recommended for better results.

4. Export, backtest, and optimize

Click Export to generate a .mq5 file. Load it into MetaTrader 5 and backtest on EURUSD H1 with at least 2 years of historical data. Optimize the EMA period (50, 100, 200), RSI pullback level (35-45 for longs), and ADX threshold (20-30). Demo trade for 1-3 months before going live.

Optimization Tips

Test multiple EMA periods for different timeframes

The 200 EMA is ideal for H1 and H4 charts. For D1 charts, a 50 EMA may be more responsive. The principle is the same: longer EMAs on lower timeframes, shorter EMAs on higher timeframes. Test 50, 100, and 200 — the strategy should be profitable across a range of EMA values, not just one.

Adjust the RSI pullback depth to market conditions

In strong trends, pullbacks are shallow — RSI may only dip to 45 before the trend resumes. In weaker trends, pullbacks go deeper. A pullback level of 40 is a good default, but test 35-45 in your optimization. If you set it too deep (like 30), you may miss most pullbacks entirely.

Don't optimize too many parameters at once

With EMA period, RSI period, pullback level, ADX threshold, and ATR multiplier, there are many combinations to test. Optimize 2-3 parameters at a time and keep the rest at defaults. If you optimize everything simultaneously, you'll find a perfect backtest result that fails completely in live trading. Simplicity beats complexity in algorithmic trading.

Frequently Asked Questions

How does the Trend Pullback strategy differ from MA Crossover?
MA Crossover enters when two moving averages cross, which often happens late in the move. Trend Pullback first confirms the trend direction using a single EMA, then waits for a temporary pullback (RSI dip) to enter at a better price. This typically gives better entries and tighter stop losses, though it may miss some trends entirely if no pullback occurs.
What EMA period should I use for the trend filter?
200 EMA is the industry standard for defining the long-term trend. For faster signals on lower timeframes, 50 EMA works well. The key rule: price above the EMA = uptrend (only buy), price below = downtrend (only sell). Don't overthink the period — 50 and 200 are both well-tested.
What RSI level defines a valid pullback?
For buy entries in an uptrend, RSI dropping below 40 signals a pullback (default). For sell entries in a downtrend, RSI rising above 60 signals a pullback. These are intentionally moderate levels — you want to catch pullbacks, not wait for extreme oversold/overbought readings that may never come during a trend.
Should I add an ADX filter to the strategy?
Yes, adding ADX > 25 is highly recommended. It ensures you only trade when a genuine trend exists. Without ADX, the strategy may take trades during choppy sideways markets where the EMA direction is unreliable. The ADX filter typically reduces trades by 20-30% while improving the win rate noticeably.
What timeframes and pairs work best for Trend Pullback?
H1 and H4 timeframes on major trending pairs like EURUSD, GBPUSD, and AUDUSD. H1 provides a good balance of signal frequency and quality. D1 works for swing trading but produces very few trades. Avoid M5 and M15 where trends are noisy and pullbacks are unreliable.

Build the Trend Pullback EA in minutes

Create this strategy with AlgoStudio's visual builder. Free plan available — no credit card required.

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Risk Warning: Trading in financial markets involves substantial risk of loss and is not suitable for every investor. Past performance does not guarantee future results. Always test strategies on a demo account first. AlgoStudio is a strategy validation platform — it does not provide financial advice or guarantee profits. See our Terms of Service for full details.