Basic Moving Average template 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:
- Basic Moving Average template Expert Advisor For MT4
- Basic Moving Average template Expert Advisor For MT4 - Trading Logic
- How to trade using the Basic Moving Average template Expert Advisor For MT4
- Basic Moving Average template Expert Advisor For MT4 Indicator settings
- Limitations and recommendations
Are you trading with moving averages? Does your trading strategy include trading moving average crossover? If yes, Basic Moving Average template Expert Advisor For MT4 will provide you with the necessary template to enhance your trading strategy further.
Basic Moving Average template Expert Advisor For MT4 - Trading Logic
The main trading logic is based on the crossover of price and the moving average. The expert advisor uses the candle closing to validate the signals.
If the price crosses from below the moving average to above, then a bullish signal is created. The expert advisor places a Buy trade. The opposite will generate a bearish sign for a sell trade.
The Basic Moving Average template Expert Advisor For MT4 calculates the lot size based on the trader's inputs in MetaTrader's expert advisor parameters. Suppose the forex trader has chosen the Money management to be false. The expert advisor uses the fixed lot sizes and places the trade.
If money management is enabled, then the expert advisor will calculate the lots according to the trader's risk percentage. It is an excellent practice to start with a 1 % risk and then scale accordingly. However, risk-bearing capabilities differ and should be well planned by the trader in advance.
After the trade is placed, the Basic Moving Average template Expert Advisor For MT4 modifies the stop loss and takes profit values. It uses the input values provided in the expert advisor settings.
The trade is closed if the price hits the stop loss or the take profit.
The expert advisor can be attached in any time frame and will provide all the available time frame options to choose from the list. Short term forex traders tend to choose 5 minutes charts, while day traders use 15 minutes and 30 minutes charts. Long term traders tend to use the H1, H4 MetaTrader charts and higher.
Moving averages are calculations are based on four different methods. They are simple moving average, exponential moving average, smoother moving average, and linear weighted moving average.
Simple moving averages and exponential moving averages are popular among forex traders. Traders use these moving averages extensively to identify trend changes.
Expert advisors can calculate the moving averages for any time frame. Long term traders use a higher value of 200 periods. While medium-term traders apply 50 periods, short term traders tend to use the 13 or 21-period moving averages. On the other hand, scalpers tend to use a much smaller period of 5.
How to trade using the Basic Moving Average template Expert Advisor For MT4
Picture A : Trading using the expert advisor.
The above picture shows the expert advisor has paced a sell trade and has placed the stop loss and take profit levels according to the expert advisor input settings. The trade will exit depending on whether the price first hits the stop loss or take profit.
The expert advisor does not draw the moving average in the charts but calculates them in the background and applies them accordingly.
Basic Moving Average template Expert Advisor For MT4 Indicator settings
Picture B : Indicator settings.
MagicNumber: Magic number for the trades placed by this expert advisor.
Slippage: Maximum slippage allowed in pips.
Money management: True will enable money management to calculate lot sizes.
Fixed lots size: Fixed lots to be traded.
Risk %: Calculates lot size automatically based on account size.
Take profit in pips: Take profit in pips.
Stop loss in pips: Stop loss value in pips.
Moving time frame: Chart time frame to apply the moving average.
Moving mode: Moving average calculation method.
Moving average period: Period to calculate the average.
Moving average shift: Draws the moving average with this shift in the previous candle.
Limitations and recommendations
Many forex traders wait for the price to move in the opposite direction to confirm trend reversal. It is established if the price crosses the moving average in the opposite direction. The Basic Moving Average template Expert Advisor For MT4 does not close the open position if the price crosses over in the opposite direction of the trade.
Trend traders tend to follow the markets using the moving averages. But there is no provision for trailing loss in this MetaTrader expert advisor. It would be better if the coder can add the trailing stop loss feature.
Many forex traders follow martingale trading. But the Expert advisor currently does not provide this feature. The expert should include an additional feature martingale trading strategy to be incorporated in this MT4 expert advisor. The inclusion of the Martingale lot multiplier, and martingale steps is an added advantage for traders using the expert advisor.
There are multiple methods to trade the moving averages. Most popular among them is using various moving averages. Still, the Basic Moving Average template Expert Advisor For MT4 only uses only one moving average to trade.
Cross over of a slow-moving average and the fast-moving average is regarded as a technical trading strategy and followed by both new and experienced traders. It would be in the best interest of a wide variety of forex traders to add the option of defining multiple moving averages in the expert advisor.
The Basic Moving Average template Expert Advisor For MT4 has the option to calculate the standard moving average types included in the Metatrader terminal. Simple, exponential, smoothed, and linear weighted are the four different types of moving average types included.
Hull moving averages, Triangular moving averages, and other popular types of moving averages can be value additions, to this Basic Moving Average template Expert Advisor For MT4.
Basic Moving Average template Expert Advisor For MT4 provides the necessary framework. Every currency pair behaves differently in various market conditions. Therefore, the forex trader must research and find out the best possible settings to successfully trade the markets using this expert advisor.