Angry Bird 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:
- Angry Bird Scalping Expert Advisor For MT4
- The Angry Bird Scalping Expert Advisor For MT4 – Entry Criteria
- The Angry Bird Scalping Expert Advisor For MT4 – Exit Criteria
- The Angry Bird Scalping Expert Advisor For MT4 – Rooms for Improvement
The Angry Bird Scalping Expert Advisor For MT4 is a typical grid martingale strategy that uses price action and a technical indicator for trade entry. As the name suggests, this robot is angry, meaning it does not accept loses. It attempts to close a trade or series of trades with a net positive profit. Inherent with all types of martingale system, the possibility of huge drawdowns and at times total account blowout always exists.
Algorithmic trading systems like this should only be used by advanced traders with sufficient trading experience as it has the potential to wipe out an entire account in no time if the user is not careful. The main challenge in this type of strategy is selecting the trade volume for the first trade and the multiplier for subsequent trades. This robot uses the martingale strategy in its basic form. It uses a factor of two in ensuing trades in the hopes of avoiding loses. To implement this trading system successfully, the user must arrive at a good combination of trade volume, multiplier, account balance and number of open trades.
The Angry Bird Scalping Expert Advisor For MT4 – Entry Criteria
The Angry Bird Scalping Expert Advisor for MT4 looks for trade entry only at the beginning of a new candle. Unlike other robots, the Angry Bird only takes one type of trade. If the previous trade is a buy, the subsequent trades are also long positions. The same is true for sell trades.
The size of the grid or step in this martingale system cannot be adjusted by the user in the Inputs. The robot will determine this value automatically and dynamically. First, the robot will get the high price of the candle with the highest high of the last 24 candles. Then the low price of the candle with the lowest low of the last 24 candles is obtained. The high price and low price so generated will be used as basis in fixing the grid size. In normal market conditions, the grid size is 4 pips.
If the robot has no open trade on the current symbol, it will check if the entry criteria are met and, if so, executes a market order. Once the first trade is in place, the robot will keep on looking for trade opportunities. If the open trades are less than 10 (maximum) and the current market price is at a grid-size distance or more from the open price of the last trade in the trade pool, a new trade will be added in the same direction as the previously opened trades.
Every time additional trades are executed, the robot will get the breakeven price of the set of open orders. This is done by multiplying the open prices and volumes of all open trades and then dividing by the total volume. Thereafter, 20 points (or two pips) is added to the breakeven price to get the new take profit price of all open orders. The robot cycles through the open orders again to modify the take profits to this single price.
This trading system uses a simple price action method and an indicator as trade entry tools. For trade direction, the close prices of the two previous candles are checked. If the next candle closes above the close of the previous candle, that is a buy signal. Meanwhile, if the next candle closes below the close of the previous candle, a sell signal is given.
The trade signal provided by the previous two candles will be confirmed by the relative strength index applied to the recently closed candle on the hourly chart. If the RSI value is above 30 and the previous trade signal is a sell, that signal is confirmed. The 30 RSI value means that market is not yet oversold on the hourly chart and still has the momentum to push downward. If the RSI value is less than 70 and the previous signal is a buy, that buy signal is confirmed. The 70 RSI value suggests that the market on the hourly chart is not yet overbought and still has the energy to keep going upward.
The Angry Bird Scalping Expert Advisor For MT4 – Exit Criteria
The Angry Bird Scalping Expert Advisor for MT4 does not set a stop loss to an open trade, only a small take profit amount of 20 points, not 20 pips. If the first trade gains two pips, the trade is closed for a profit. If the first trade goes the other way, additional trades are taken against the recent trend with higher trade volumes. Then the take profit of all trades is adjusted to breakeven plus two pips. This allows trades to be closed quickly with minimal pips but with good profit the reason being that the last trade’s position is relatively bigger.
The Angry Bird Scalping Expert Advisor For MT4 – Rooms for Improvement
The Angry Bird Scalping Expert Advisor for MT4 is an exciting robot for neophyte traders as it gives them the impetus to start trading sooner than later to make easy money. However, the opportunity to make big money quickly also comes with the risk of losing the entire investment in a blink of an eye. The main culprit is the multiplier of two. The trading account would be safer if that multiplier is reduced to, say 1.5. Naturally, the profit would go down as well, but this is acceptable since preserving the capital holds more weight.
Anyone interested to test this robot to check its profitability may consider turning on the UseEquityStop option. When this setting is enabled, the trading system would accept loses if the drawdown reaches a predetermined threshold. By default, this is set to 10%. Other robots of this type use lower or higher percentage. Increasing this percentage would result in infrequent loses but would gravely hurt the trading account if the loss comes about. However, it is possible to recover the losses as trading continues. Regardless investors looking to make consistent small gains with a longer time outlook might benefit from this robot. The strategy involves using an account with big capital and settling for minimal profits. Over time the profits add up while the account is not at risk of big drawdowns.