Awesome Oscillator Trader 2 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 Awesome Oscillator Trader 2 Expert Advisor For MT4 is a complex algorithmic trading system for MT4 platform. It is recommended for use by intermediate and advanced users due to the number of parameters that must be set correctly and the complexity of the trading algorithm. Running the robot in a short amount of time through back testing shows that it is not yet suitable for live trading as the result is currently negative. However, it might show different results if the default settings are adjusted. Further testing or optimization is needed to gauge its trading performance.
The robot is designed to be used on the EURUSD pair and applied to the hourly chart to get the best results, and it works on one symbol at a time. Due to the manner of lot size calculation, the expert advisor must be implemented in trading accounts whose exchange rates are given in four and two decimals. A little tweak in the calculation is necessary to make the robot applicable to five- and three-digit accounts.
The Awesome Oscillator Trader 2 Expert Advisor For MT4 – Entry Criteria
The Awesome Oscillator Trader 2 Expert Advisor for MT4 takes a trade at the open of a new candle. The lot size on any trade varies and depends on the account balance at the time of trade execution. It goes up and down as the account balance grows or shrinks. Apart from the balance, the risk percent set by the user (default 0.5 percent), stop loss (based on the average true range) and tick value for the current symbol also factor into the lot size calculation.
The trade volume is computed in this manner. First, the value of the ATR for the current candle in the active timeframe is computed. Then it is multiplied by the ATR factor defined in Inputs and divided by the point value of the current symbol. The default ATR factor of 4.5 puts the stop loss at a distance relatively far from the market price. Most traders use a standard factor of two. Multiplying the account balance with the risk percent and dividing the product by the stop loss distance and the tick value will result in the actual lot size value.
The ATR value obtained is also used as the stop loss distance from the entry price. At the same time, the take profit is set equal to the stop loss. All trades taken come with a predetermined stop loss and take profit values. By default, only one trade is taken at a time, but the user can adjust this setting in Inputs.
The technical indicators and their settings used in trade generation are presented below:
- Average true range (period 3) – The ATR in this trading system is not used to provide a signal for trade direction or entry timing. It is only used for setting the stop loss price and for determining the lot size.
- Bollinger bands (period 20, deviation 2) – This is the standard setting for Bollinger bands. The previous candle in the current timeframe is checked if the distance between the upper band and the lower band is within the range of 24 and 230. If that is the case, the value so obtained is taken as one factor into the trade generation process.
- Stochastic (1, 4, 1) – The stochastic indicator is used to confirm trade entry and trade closure. A buy signal will prompt the robot to close the sell trade, while a sell signal will trigger the robot to close the buy trade. For a buy trade entry, the stochastic value of the previous candle should be above 12. For a sell trade entry, the stochastic value of the previous bar should be below 21.
- Custom awesome oscillator (4, 28) – This is a custom indicator that comes with the expert advisor. The robot will get the value of this custom indicator using the iCustom function. If the previous four bars are below zero and the value of the current bar is bigger than that of the previous bar, this is a bullish signal. Meanwhile, if the previous four bars are above zero and the value of the current bar is smaller than that of the previous bar, this gives a bearish signal.
Further checks are performed by the robot prior to taking trades. Trading is only allowed from 16:00 to 23:00 server time by default. Also, the robot explores the trading account if it has enough margin to execute new trades. If the routine checks are successful, there is no open trade yet on the current symbol and the indicators give a buy or sell signal, the robot executes an order when a new candle has formed.
The Awesome Oscillator Trader 2 Expert Advisor For MT4 – Exit Criteria
The user is presented with three options in closing trades. The first option is to close trades both losing and winning, the second is to close only profitable trades, and the last is to close only losing trades. The default setting is to close only profitable trades.
Trades are closed at the start of a new candle if the trigger for trade closure comes from technical indicators. However, a trade can be closed at any time if price hits the stop loss. The robot actively manages live trades. Trade management is being performed prior to looking for trade entries.
On every candle, the robot determines what type of order is open, checks if the distance between the Bollinger bands is within normal range, probes if the stochastic is in overbought or oversold territory and looks at the custom awesome oscillator if it gives a signal opposite to the direction of the current trade. If all conditions are met, the current trade selected will be closed by the robot.
The Awesome Oscillator Trader 2 Expert Advisor For MT4 – Rooms for Improvement
During testing, the Awesome Oscillator Trader 2 Expert Advisor for MT4 shows a mediocre performance. The equity curve is inclined to the downside, the maximal drawdown is not acceptable (above 40%), and expected payoff is negative. The win rate is actually high (around 58%). Still the net result is negative due to the low profit factor, which is less than one.
The testing result suggests that this trading system must be improved to become profitable. One area to look into is the lot size calculation. The trade volumes of the current trades are higher than normal. This is not an error at all as the creator might have developed this robot for use in two- and four-digit brokers. The program appears to be old and needs review. To obtain a correct lot size, the tick value must be multiplied first by 10 before it is used in calculating the trade volume.