Awesome Oscillator Trader 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:
- Awesome Oscillator Trader Expert Advisor For MT4
- The Awesome Oscillator Trader Expert Advisor For MT4 – Entry Criteria
- The Awesome Oscillator Trader Expert Advisor For MT4 – Exit Criteria
- The Awesome Oscillator Trader Expert Advisor For MT4 – Room for Improvement
The Awesome Oscillator Trader Expert Advisor For MT4 is a scalping trading system designed for MetaTrader4. It can work on any timeframe and symbol. As the name suggests, the expert advisor employs a technical indicator familiar to many technical traders. This indicator is the awesome oscillator, a momentum indicator invented by Bill Williams. While this indicator is available as a built-in tool in MetaTrader4, this trading system uses a customized version that comes in the expert advisor package. Still, as can be seen in the image above, the custom indicator looks almost the same as the built-in version.
The Awesome Oscillator Trader Expert Advisor For MT4 – Entry Criteria
The Awesome Oscillator Trader Expert Advisor conducts preliminary checks prior to the trade search. First, it inspects the current timeframe if a new candle has formed. If so, it determines if the current hour on the broker side is within the trading time range. If that is the case, the robot counts the trades in the trading account and finds out if there is a trade in the current symbol or not. Next, it examines the free margin if it is possible to open new trades. Once these tests turn out well, the robot engages in trade hunting.
Before anyone starts using this expert advisor, he should understand how the program works by looking into the options provided in Inputs. Out of a large range of external variables available to the user, the following are selected to give the user an overview on the trading setup:
- MagicNumber = 123456 – The expert advisor assigns this number to each trade it has opened to facilitate trade management.
- CloseTrade = true – Since this is true, trades will be closed by a signal coming from the awesome oscillator.
- BBPeriod = 20 – The trading system makes use of the Bollinger bands with a period of 20.
- BBSigma = 2.0 – The Bollinger bands in use has a deviation of 2.0.
- BBSprd_LwLim = 55 – The expert advisor determines the gap between the upper and lower Bollinger bands. The gap in pips should be equal to or greater than this value to continue the trade search.
- BBSprd_UpLim = 380 – The gap in pips between the upper and lower bands should be equal to or less than this value to continue the trade search.
- PeriodFast = 3 – This is the fast period for the customized awesome oscillator that comes with the expert advisor bundle.
- PeriodSlow = 32 – This is the slow period of the customized awesome oscillator that comes with the expert advisor package.
- awLimit = 0.13 – The computed value of the customized awesome oscillator should be greater than this minimum value for a trade signal to be valid.
- kStoc = 8 – This is the %k period of the stochastic oscillator.
- dStoc = 3 – This is the %d period of the stochastic oscillator.
- sStoc = 3 – This is the slowing period of the stochastic oscillator.
- Stoc_Lo = 18 – The stochastic value for the previous candle should be greater than 18 to qualify a buy signal.
- Stoc_Hi = 76 – The stochastic value of the previous candle should be less than 76 to qualify a sell signal.
- entryhour = 0 – The robot will start looking for trade entries at zero hour on the broker time, that is, at market open time.
- openhours = 16 – This value is not the hour time, but the number of hours from entry hour when trading operations can be conducted by the robot.
- Lots = 0.1 – Each trade taken by this robot has a position size of 0.01 if not amended by the user.
- TakeProfit = 200 – The take profit of trades opened by this robot is 200 pips.
- StopLoss = 80 – The stop loss of trades opened by this robot is 80 pips.
- TrailingStop = 40 – Trailing stop is activated when a trade wins 40 pips.
- NumOpenOrders = 1 – This value means that the robot can take only one trade on the current symbol.
The expert advisor employs the awesome oscillator as the main indicator for trade entry. To qualify the entry signal, the robot makes use of the Bollinger bands and stochastic indicators as well. How the trade signal is generated and qualified is explained in detail below:
- Bollinger bands (period 20, deviation 2) – This is the standard setting for Bollinger bands. The values are obtained from the previous candle of the current period and symbol. These values are for the upper and lower bands. Then the values are subtracted to get the width of the band. If the width is greater than 55 pips and lower than 380 pips, the trade search continues. Otherwise, the trade search ends, and no trade is executed.
- Stochastic (8, 3, 3, simple mode) – The stochastic indicator is used as one filter for entry, and its value is computed from the previous candle of the current period and symbol. A buy signal is qualified if the stochastic value is greater than 18, and a sell signal is qualified if the stochastic value is less than 76.
- Awesome oscillator (custom indicator) – The values of the awesome oscillator are obtained from the previous three candles of the current period and symbol. For a buy trade, the three values should be negative and the awesome oscillator should have formed a valley. For a sell trade, the three values should be positive and the indicator should have formed a peak.
When a trade opportunity has arisen, the expert advisor executes the trade with a lot size of 0.1 as defined in Inputs. When the trade is executed, the stop loss and take profit are also defined. The stop loss is set at 80 pips, while the take profit is set at 200 pips, putting the initial risk-reward ratio to 2.5 in favor of reward. However, this projected risk-reward ratio will not materialize due to the use of the trailing function.
The Awesome Oscillator Trader Expert Advisor For MT4 – Exit Criteria
The Awesome Oscillator Trader Expert Advisor opens one trade at a time and when a new candle has formed on the current timeframe and symbol. This trade is managed actively by the robot throughout its trade time. As long as the trade did not hit the stop loss, it will remain open on the chart. If the trade managed to break in on the winning side of the market and an opposite signal has developed, the trade will be closed in profit.
The robot does not close a losing trade when an opposite signal has been generated. On the other hand, if a trade is winning from entry and gains 40 pips, stop trailing kicks in, and the robot sees the trade through however far it can go in the profitable direction. Since the take profit target is significantly far (200 pips), the chance of hitting it is slim, but this scenario has an incidental advantage of giving the trade enough room to run to generate more profit.
The Awesome Oscillator Trader Expert Advisor For MT4 – Room for Improvement
In a preliminary test, the Awesome Oscillator Trader Expert Advisor showed a good overall performance. The equity curve was rising from beginning to end, drawdown was very low (about one percent), profit factor was high (1.89 percent) and win rate was high (88 percent). Despite the diluted risk-reward balance due to the use of stop trailing and occasional intervention of the robot, the high win rate was able to make up for this imbalance. To have more confidence of the effectiveness of this trading system, the user must do more testing using different trading instruments and settings.