3 Level ZZ Semafor Expert Advisor For MT4
WE IMPROVED THIS EXPERT ADVISOR FOR YOU!!!
PLEASE NOTE: This expert advisor was publicly available for free usage on other websites and is not programmed by us. We explain the functionality and possible improvements of the EA. Furthermore, we are convinced that fully automatic Expert Advisors will fail in the long run. On the other hand, our semi-automatic approach with detecting the best setups and then activating our Expert Advisors (e.g. V-Power EA, EdgeZone EA) produced many successful traders and some of them even got prop traders at prop trading firms. Therefore, we added a similar semi-automatic trading feature (to allow only buy or only sell trades) to the free Expert Advisors. You can download the modified version here and enjoy!
Table Of Contents:
- 3 Level ZZ Semafor Expert Advisor For MT4
- The 3 Level ZZ Semafor Expert Advisor For MT4 – Entry Criteria
- The 3 Level ZZ Semafor Expert Advisor For MT4 – Exit Criteria
- The 3 Level ZZ Semafor Expert Advisor For MT4 – Rooms for Improvement
The 3 Level ZZ Semafor Expert Advisor For MT4 is a simple expert advisor for MT4 platform. It uses one technical indicator both for trade entry and exit. This custom indicator is widely known as semafor. Like the zigzag indicator built in MT4, the semafor marks swing points on the chart. For trade entry, the robot takes a buy trade if the semafor gives a bullish signal and the opposite is true for a sell trade. If a trade is open while the semafor gives an opposite signal, the trade is closed but only if it is profitable.
Running the trading system in the strategy tester shows that it is not yet suitable for live trading. A review of the program code is necessary to correct an obvious issue, that is, the lot size for trades that is bigger than normal. This issue is undoubtedly the main cause of the poor performance. If that is out of the way, testing the robot in various instruments for a good amount of time might show an entirely different result.
The 3 Level ZZ Semafor Expert Advisor For MT4 – Entry Criteria
The 3 Level ZZ Semafor Expert Advisor for MT4 performs minimal checks prior to looking for trade opportunities. This is done on every new candle. Here the robot does not use the candle open time using the iTime function to check if a new bar has formed. Instead, it looks at the volume property of the current bar if the value is zero. Any other value means the quote received from the trade server is not the first tick for the current candle.
Another value being checked is the number of bars in the current chart. It must be at least 100 bars. Then the robot will check if automated trading is enabled in the client terminal. If successful, the robot will cycle through the trade pool to see if there is any open trade on the current symbol. If so, it will look to the semafor for trade signal.
The technical indicator in use and how it is employed in this trading system are explained below:
- Custom 3 Level ZZ Semafor (28, 56, 112) – This is a custom indicator available for free download on many websites online. The purpose of the indicator is to determine the swing highs and swing lows and display them on the chart. Minor swing points are marked with smaller circles, and major swing points are labelled with big circles. This robot looks only for the major swing points. The values of the indicator are obtained using the iCustom function. If the data buffer 4 returns a value, this means a major swing low is printed on the chart. If the data buffer 5 returns a value, it suggests that a major swing high has been made. The values are actual prices on the chart. The robot will check the indicator once in every new candle to see if the third candle from the current one has any value. If data buffer 4 returns a value, the signal is a buy; if data buffer 5 has a value, the signal is a sell.
The last value being computed by the robot prior to taking a trade is the lot size. In general, this value is dependent on the account free margin and maximum risk set by the user. Here the default risk indicated in Inputs is 0.02, which is equivalent to two percent. Lot size calculation is done in the background, and the robot assigns the lot size so determined to the trade taken. It might come as a surprise that the robot does not look at the lot size manually defined by the trader in Inputs. What the trader can see is a trade with a volume of 10. Only one trade is taken at a time. It might take some time before another trade is executed as the robot places trades only when there is an opportunity.
The 3 Level ZZ Semafor Expert Advisor For MT4 – Exit Criteria
Once in every new candle, the 3 Level ZZ Semafor Expert Advisor for MT4 loops through the trade pool to find out if a trade exists in the current symbol. Since trades taken have no stop loss and take profit orders, trade closure is actively managed by the robot. After determining the type of trade open, the robot will check the semafor indicator if it is time to close the trade. If the trade is a buy and the semafor gives a bearish signal, the trade will be closed. If the trade is a sell and the semafor indicates a bullish signal, the sell trade will be closed.
The 3 Level ZZ Semafor Expert Advisor For MT4 – Rooms for Improvement
At the beginning of testing, the 3 Level ZZ Semafor Expert Advisor for MT4 performed really well. The equity curve was going up as trades were closed in profit. After some time, the equity curve line pointed downward as a series of losses occurred. The testing ended on a negative note for the robot.
The main reason for this bad performance is probably the big lot size on every trade. While the default lot size is 0.5, the actual trade volume is 10. Even if the user manually adjusts the lot size in Inputs, the result would be the same. The robot would execute trades at lot sizes of 10. Obviously, this is a program bug. Checking the code reveals that the lot size set by the user is overwritten. In the code, some variables are defined but not really used in the program. This goes to show that the robot is an old program that needs reworking.
Another area to look into is the manner in which the values of the semafor indicator are interpreted by the robot as buy or sell signals. It appears the signal for buy and sell is reversed. Another problem is the repainting issue of the semafor indicator as observed in the strategy tester. Swing points change as new candles form, so trades might be misplaced as labels disappear on the chart. Also, it is best to use this robot on the higher timeframes as the indicator gives more reliable signals. The timeframe to be used with this robot should be at least one hour.