Auto Trade with BB Expert Advisor For MT4
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 Auto Trade with BB Expert Advisor For MT4 is a simple algorithmic trading system for MT4 platform. It is a complete trading solution as it manages both the opening and closing of trades. One instance of the program can only be used in the current symbol. It cannot handle several symbols at once.
To use the robot in another trading instrument, another instance of the program should be run on that instrument or pair. The user does not need to change the magic number every time this is done because the robot checks the applicable symbol apart from the magic number.
This trading system is designed to be used in trading accounts whose exchange rates are given in four digits for dollar pairs and two decimals for yen pairs. If implemented in new trading accounts with five- and three-digit price quotes, the robot still works, but the lot size is higher than normal and trailing stop adjustment occurs too frequently.
The Auto Trade with BB Expert Advisor For MT4 – Entry Criteria
The Auto Trade with BB Expert Advisor for MT4 looks for trade entry at the open of a new candle. By default, each trade will have a stop loss of 100 pips and no take profit. At any time, the user can adjust these settings in Inputs. Trades will have varying lot sizes depending on the account balance and risk percentage, so the trade volume goes up and down as the account grows or shrinks. This is because automatic lot size calculation is enabled by default. In this case, the manual lot size set in Inputs is overlooked. The default risk is five percent, resulting in a trade volume that is higher than normal.
The indicators used for entry and their settings are explained below:
- Bollinger bands (period 50, deviation 4) – This setting for Bollinger bands is not standard, but too high. As a result, price is contained within the upper and lower bands most of the time, leading to fewer trades for the trading account. The values being used in determining trade signals are the upper and lower bands of the previous candle. If the previous candle in the current timeframe closes above the lower band, that is a sell signal. If the previous candle closes below the upper band, that is a buy signal. This is how this indicator is being used in the program.
- Relative strength index (6) – This period is not typical for the RSI. In this trading system, the RSI gives a trade signal if it reaches the overbought and oversold conditions. If the RSI value for the previous candle is greater than 75, that is taken as a sell signal. If the value is less than 25, a buy signal is given.
- Stochastic (14, 3, 3, close/close) – These values for the %K period and price field are customized. The result is an oscillator with values overshooting the normal low and high boundaries. Also, the levels used in the program are not common for RSI. A value greater than 85 is considered bearish, and a value less than 155 is deemed bullish.
If there is no open trade in the current symbol and the indicators give a certain signal, the robot will perform one last check prior to taking a trade. If the current time is between GMT 12 and GMT 19 inclusive, the trade signal will be executed. This is the default time schedule set in Inputs. The trading system is designed to take advantage of the market activity during the overlap of the London and New York sessions all the way to the end of the New York session for a total of seven trading hours.
The Auto Trade with BB Expert Advisor For MT4 – Exit Criteria
Since the Auto Trade with BB Expert Advisor for MT4 sets a huge stop loss (100 pips default) but does not put a take profit order to open trades, it needs to actively manage such trades. This is done using the trailing stop function. Opening trades this way is aimed at exploiting market trends and volatility.
Prior to adjusting the stop loss of any trade, certain conditions must be satisfied. The robot loops through the orders in the trade pool to find trades in the current symbol, with the magic number and comment defined in Inputs. If that is the case, the robot will get the open price and stop loss price of the currently selected order and compare them with the prevailing market price. For a buy trade, the current bid price must be above the order open price, the distance between bid price and open price should be greater than the trail stop value, and the gap between bid price and stop loss should be greater than the trail stop amount. If the above conditions are true, the robot will adjust the stop loss as frequent as the conditions are met.
While the default trail stop amount is 20 points, the robot may use a different trailing stop value in performing stop loss adjustment. If the current symbol to which the robot is attached has a stop level bigger than 20 points, the robot will use the stop level value as the trailing stop amount.
The Auto Trade with BB Expert Advisor For MT4 – Room for Improvement
The performance of the Auto Trade with BB Expert Advisor for MT4 in the strategy tester leaves a lot to be desired. The equity curve is going downhill, and the drawdown is huge. This is probably due to the huge lot sizes being used per trade. It appears the formula being used to compute the lot size is erroneous. The trade volume is just too much for the trading account to handle.
If the code is reviewed, the coder must use the standard formula, which takes into account the account balance, risk percentage, stop loss distance and tick value for the current symbol. The trade volume so obtained is then checked if it is in between the lower and upper range of lot sizes allowed and if it is a multiple of the lot step for the type of the trading account.