Aeron JJN Scalper 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!
The Aeron JJN Scalper Expert Advisor For MT4 is a simple yet promising automated trading system. It uses a simple price action strategy to find trading opportunities and employs the average true range indicator in setting stop loss and take profit targets. This price action method is widely known among technical traders as a bullish or bearish engulfing pattern. The trading system is recommended to be used on the hourly chart of any major USD pair.
When the robot was tested using five months of test data in EURUSD one-hour chart, it managed to generate a minimal profit at a profit factor of 1.16 and a very low drawdown of about one percent. While the win rate looked impressive (i.e., 69 percent), the metric does not translate to great profitability. This is due to the use of the trailing stop function. The trading system was able to make money because of the high win rate, but the return on investment is insignificant when measured against the amount of time spent in trading. Further testing is necessary to determine the best settings that would yield the most profit.
The Aeron JJN Scalper Expert Advisor for MT4 – Entry Criteria
The Aeron JJN Scalper Expert Advisor for MT4 is a simple scalping trading system, judging by the amount of coding used by the creator to develop the program. It gives the user just enough number of parameters in Inputs to work with to be able to control the trading operations. The variables and their default values are listed and explained below to guide the user:
- MagicNumber = 1237322 – The expert advisor assigns this magic number to each trade to facilitate trade management.
- Comments = "Aeron_JJN" – This comment is added to each trade as another identifier of trades taken by the expert advisor.
- Lots = 0.10 – Each trade will have a lot size of 0.10.
- ResetTime = 10 – This value is in minutes and is being used when deleting the pending order. If a pending buy stop or sell stop order has been opened for more than 10 minutes, the robot will delete the order.
- DojiDiff1 = 0.001 – This value is equal to 10 pips when the underlying symbol is a USD pair. It does not apply to JPY pairs. This value is the desired minimum distance between the open and close prices of the current bar.
- DojiDiff2 = 0.0004 – This value is equal to 4 pips. This variable is used to confirm if the distance between the open and close prices of the current bar is still positive or significant.
- TrailSL = true – Since this parameter is true, trailing stop will be used by the expert advisor in managing open trades.
- TrailPips = 10 – Trailing stop is triggered when a trade has gained 10 pips.
- AtrPeriod = 8 – The average true range indicator has a period of 8.
This trading system uses price action to find a trade opportunity. When price action using candlesticks has found a trade entry, the stop loss and take profit limits are set using the ATR. The process of finding and placing an entry is explained in more detail below:
- Average true range (period 8) – The value of this indicator as it is applied in the current symbol, timeframe and candle is computed to set the stop loss and take profit prices of the pending order. For a buy trade, the stop loss is set one ATR below the open price of the current candle, and the take profit is placed one ATR above the open price. For a sell trade, the stop loss is placed one ATR above the open price of the current bar, and the take profit is put one ATR below the open price.
- Candlestick pattern – The main trigger for entry is the occurrence of a specific candlestick pattern involving two candles. This pattern is commonly known as an engulfing pattern. A buy signal is generated when the previous candle is bearish, the current candle is bullish, and the range between the open and close prices of the current candle is greater than 10 pips. A bearish signal is obtained when the previous candle is bullish, current candle is bearish, and the range between the open and close prices of the current bar is greater than 10 pips.
This expert advisor uses a pending buy stop or sell stop order to enter the market. If price action signals an entry and there is currently no open market or pending order on the current symbol, a pending order is placed on the chart. For a pending buy stop order, the price is placed a spread above the open price of the current bar. For a pending sell stop order, the price is placed a spread below the open price of the current bar.
At the time of placing the pending order, the stop loss and take profit limits are also defined. For a pending buy stop order, the stop loss is set one ATR below the open price of the current bar and the take profit is set one ATR above the open price. For a pending sell stop order, the stop loss is set one ATR above the open price of the current candle and the take profit is set one ATR below the open price.
The Aeron JJN Scalper Expert Advisor for MT4 – Exit Criteria
The Aeron JJN Scalper Expert Advisor for MT4 opens only one market order at a time. This market order is a pending order that is converted to a live trade. Pending orders placed by this robot have a lot size of 0.10 as defined in Inputs. Such pending orders do not have expiration times, but the robot monitors the length of time that a pending order has been placed on the chart. If the length of time reaches 10 minutes, the pending order is deleted by the expert advisor.
There can only be a maximum of two orders open at the same time on the current symbol. It is possible that one pending order is a buy stop and the other is a sell stop. If one of the pending orders has been converted into a market order, then one order is an actual trade while the other is a pending order. Most often, there is only one order on the chart (market or pending). When a market order is profitable and has gained at least 10 pips, trailing stop comes in until price hits take profit or the new stop loss. Either way, the trade is closed in profit.
The Aeron JJN Scalper Expert Advisor for MT4 – Room for Improvement
The Aeron JJN Scalper Expert Advisor for MT4 can be improved programmatically to make it a more versatile trading system. At this time, the robot is applicable only to USD pairs due to the way that the values of the range between open and close prices of candles are given in Inputs (see DojiDiff1 and DojiDiff2). The robot will return an error when used in yen pairs.
In addition, the code is designed for currency pairs with four digits and five digits only. There might be a problem when placing pending orders for pairs with two or three digits, which is the case for yen pairs. While the program creator suggested that the expert advisor should be used in EURUSD hourly chart, uninformed traders might assume that it is okay to use currency pairs other than the suggested symbol. If this happens, users might encounter errors or conclude that the robot is not working at all.