5 Minutes Scalping 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:
- 5 Minutes Scalping Expert Advisor For MT4
- The 5 Minutes Scalping Expert Advisor For MT4 – Entry Criteria
- The 5 Minutes Scalping Expert Advisor For MT4 – Exit Criteria
- The 5 Minutes Scalping Expert Advisor For MT4 – Room for Improvement
The 5 Minutes Scalping Expert Advisor For MT4 is a complex trading system that uses an advanced trading algorithm and employs multiple custom indicators to trade the financial markets. It provides several functions and options that the user can enable or disable to suit his style of trading.
There are many ways to trade this expert advisor, so trading with the default settings is covered here. Testing was done to determine its profitability, but it was too short to provide a reliable conclusion. Therefore, anyone interested to use this robot in trading must do his own testing to see for himself if this trading system can generate profits.
The 5 Minutes Scalping Expert Advisor For MT4 – Entry Criteria
The 5 Minutes Scalping Expert Advisor comes with a huge array of parameters in Inputs, giving the user great flexibility to run the system in the style of his choosing. The following list contains the most crucial parameters that the user must learn to use:
- CloseInProfit = false – When this condition is set to true, the expert advisor will close all open trades even if one trade is losing when the net profit reaches a certain amount.
- PipsCloseProfit = 10.0 – When the net profit in a trading account equals this amount, the expert advisor will close all open trades.
- CloseInLoss = false – When this condition is true, the robot will close all live trades in the trading account even if one trade is winning when the net profit is negative and its absolute value is equal to a specific amount.
- PipsCloseLoss = 100.0 – When the net profit equals negative 100 dollars, all open trades will be closed immediately. This is to protect the trading account from heavy drawdown or worse total account wipeout.
- UseTakeProfit = true – This parameter is true by default. It means that each trade will be executed with a defined take profit price.
- TakeProfit = 10.0 – This number is in pips. This will be the distance between the entry price and the desired take profit price.
- UseStopLoss = true – When this parameter is true, a protective stop will be defined for each trade.
- StopLoss = 10.0 – Each trade has a defined stop loss of 10 pips.
- UseTrailingStop = false – While trailing stop function is available, it is disabled by default.
- UseBreakEven = false – While breakeven function is available, it is inactive by default.
- AutoLotSize = false – When this is true, the expert advisor will specify the lot size for each trade based on the risk factor and the account balance.
- RiskFactor = 1.0 – If automatic lot sizing is enabled (disabled by default), the lot size for each trade will be one percent of the account balance.
- ManualLotSize = 0.01 – Since automatic lot sizing is not used, a fixed lot size of 0.01 is set for each trade.
- UseTimeFilter = false – The user can set the hours of the day at which the expert advisor performs trading operations. Otherwise, trading schedule is not considered.
- TimeStartTrade = 0 – This value can range from 0 to 23. It represents the start of the trading day.
- TimeEndTrade = 0 – This value can range from 0 to 23 and represents the end of trading day.
- MaxSpread = 0.0 – If the value is zero, the expert advisor will not consider the current spread when taking a trade, meaning any spread amount is accepted.
- MaxOrders = 0 – With this default value, the user might assume that the robot will not take any trade. In reality, the robot will take a maximum of one buy trade and one sell trade based on this setting.
- Slippage = 3 – The maximum slippage accepted by the robot is three pips. The user can adjust this value, though.
- MagicNumber = 0 – When this value is zero, the expert advisor will define and set a specific magic number to the trades.
- CommentsOrders = "5MinutesScalpingEA" – This information is attached to each trade and can be used in combination with the magic number to manage open trades and monitor the trading performance.
Five custom indicators are used to identify the trend and hence the direction of the trade. These indicators come with the expert advisor package. It is important that they are placed in the correct directory of the client terminal so that the trading system works. The easiest way to do this is to put them in the Indicators folder. However, if this folder is already populated and the user prefers to use a sub-folder, that is possible as long as the code is updated accordingly.
The user can see the default settings of the five external indicators in Inputs, and he has the option to disable or enable any of the five indicators at will. Plus, as the user desires, he can adjust the settings of the individual indicators to get better results. What those custom indicators do and measure and how the signals are generated are beyond the scope of this article. The source codes of the indicators are available, though, so the user can look into them as he finds necessary.
If the five indicators give a specific trade signal, the expert advisor initiates the trade at the open of the next candle. Each trade comes with a definite take profit and stop loss values. By default, take profit is 10 pips, and stop loss is 10 pips. However, the actual stop loss takes the current spread into consideration. The spread is added to the stop loss when the trade is executed, while the take profit is maintained.
Since automatic lot sizing is disabled by default, a lot size of 0.01 lot is used all throughout. At most two trades can be opened by the robot on the active symbol so long as a signal is available. One trade is a buy, and another is a sell. The scalping robot may execute a trade at any time of the day because time filter is inactive. If the user wants, he can enable the time filter to trade at specific times of the day.
The 5 Minutes Scalping Expert Advisor For MT4 – Exit Criteria
The 5 Minutes Scalping Expert Advisor contains the breakeven and trail stop functions, but these are disabled by default. If the user wants, he can turn these functions on so that the robot actively manages the open trades. Otherwise, the trades are left for the market to decide their outcomes, that is, trades will be closed either by the take profit or stop loss. Besides, the default stop loss and take profit values are too close to the entry price, so it does not take much for price to touch any of these levels.
The 5 Minutes Scalping Expert Advisor For MT4 – Room for Improvement
By design, the 5 Minutes Scalping Expert Advisor expects to profit from trading by achieving a good win rate. Judging by the take profit and stop loss relationship, if win rate is greater than 50 percent, this robot could generate profits. The setback is that the spread is added to the stop loss, disrupting the balance between risk and reward.
When the risk-reward ratio is disturbed, the expert advisor would fail to make money even if the win rate is 50 percent. This is because a winning trade would bring in a profit of 10 dollars, for example, but a losing trade would take out 12 dollars. It means the probability of winning is low at the outset. When testing was done, the account suffered a minimal loss, though the drawdown was very low (less than one percent). Still the most important factor is the win rate, which was only 45 percent.