Crypto Scalper 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 Crypto Scalper Expert Advisor for MetaTrader4 is a simple automated trading system for MT4. While it sounds like the trading system is designed for cryptocurrency, the Crypto Scalper actually works in foreign exchange instruments. The user can implement the robot in both five and four-decimal brokers.
More testing is needed to determine the profitability of the Crypto Scalper. Back testing over five months of historical data for one symbol and one timeframe ended in a small loss, but one metric looks good. That is, maximal drawdown is less than one percent. The most apparent flaw is the low win rate, which is only 25 percent. This could be the reason why the robot failed in this testing.
The Crypto Scalper Expert Advisor For MT4 – Entry Criteria
The Crypto Scalper Expert Advisor for MT4 only performs trade operations when there are more than 100 bars on the current chart, if the take profit is greater than 10 pips, if there is enough free margin to open new trades, and if there is a new bar.
If there are no trades open yet for the current symbol or if the open trades are less than the maximum (10 trades by default), the robot will open trades if the set of trade criteria provided by the technical indicators is satisfied. The technical indicators and their settings as well as how values are interpreted to generate a trade signal will be discussed shortly in the succeeding paragraphs.
In the meantime, it is important that the user understands the parameters provided in Inputs to maximize the potential of the expert advisor. The following are the most important parameters that should be set correctly by the user:
- Lots = 0.01 – This is the trade volume for all trades. The robot does not increment the trade volume or use martingale strategy to increase the lot size.
- TrailingStop = 40 – Open trades will have their stop losses trailed when they gain at least 40 pips.
- Stop_Loss = 20 – A trade will be closed in loss when the market goes against it for 20 pips.
- MagicNumber = 1234 – This number identifies the trades taken by the robot from those taken by other robots.
- Take_Profit = 50 – Trades will be closed in profit when they hit the 50 pips target from trade entry.
- UseEquityStop = true – When this parameter is true, the robot will forcibly close trades when drawdown reaches the threshold amount.
- TotalEquityRisk = 1.0 – Trades will be forcibly closed in loss when drawdown reaches one percent of the account balance.
- Max_Trades = 10 – The robot can take as much as 10 trades if this default value is maintained.
The Crypto Scalper uses different technical indicators to determine and confirm a trading opportunity. How these indicators are used in the trading system is explained below:
- Money flow index (period 14) – This is the standard setting for the built-in Money Flow Index indicator that comes with MT4. This indicator is applied to the current timeframe, and values are obtained for the three previous candles. In this system, MFI is used to give a reversal signal when it touches the overbought or oversold level. If any of the three previous candles is below 30, a bullish signal is given, while if it is above 70, a bearish signal is given. This is the primary indicator for identifying trade opportunities.
- Moving average convergence divergence (12, 26, 29) – This is the standard setting for MACD. The indicator is applied on the current timeframe, and values are obtained for the previous candle. A buy signal is generated if the MACD line is above the signal line regardless if the MACD line is above or below zero. A sell signal is indicated when the MACD line is below the signal line whether the main line is below or above zero.
- Momentum (period 14) – The momentum indicator is being used to confirm the signal given by the other indicators. If the momentum value of any of the three previous candles of the next higher timeframe is less than 0.3, the signal is validated. This indicates that the underlying asset is not yet exhausted, so it has enough momentum to move price in a certain direction.
Once a trading opportunity is determined and confirmed, a trade request with a lot size of 0.01 will be sent to the trade server. Along with the request is a specification for the predetermined stop loss and take profit prices. Trades are only initiated at candle open. While the default stop loss of every trade is 20 pips, the actual stop loss is bigger than this by the amount of the spread. On the other hand, the robot will take away the spread amount from the default take profit of 50 pips.
The Crypto Scalper Expert Advisor For MT4 – Exit Criteria
Apart from the stop loss and take profit, trades taken by the Crypto Scalper Expert Advisor can be closed at other prices. This is because trailing stop and breakeven are in place and enabled by default. When a trade is winning and gains 30 pips, breakeven function comes into play. When the trade bags 40 pips from trade entry, trailing stop function is activated. After this point, the take profit target is just 10 pips ahead. Stop losses are not modified in real time, only when a new bar has formed.
When there are multiple trades, the robot will adjust the stop losses to only one price, so a set of trades can be closed all at once when the market changes direction. Interestingly, the take profit moves in the direction of winning trades, making the take profit an elusive target to hit.
To protect the account from disaster, the expert advisor employs equity stop. The robot will close all trades when in negative running profit and when the drawdown is beyond the tolerable range. Forced closure of trades will happen when the drawdown is equivalent to one percent of the account balance.
The Crypto Scalper Expert Advisor For MT4 – Suggestions for Improvement
The Crypto Scalper Expert Advisor for MT4 needs reworking to make it profitable. During testing using five months of data, the Crypto Scalper failed to generate profits for the trading account. A total of 177 trades is taken in the test duration, profit factor is small, drawdown is less than one percent, and win rate is low (25 percent). The equity curve in general was drifting continuously to the downside. This kind of testing result is not acceptable for serious traders or investors. It only means it is not safe to use the expert advisor with the current default settings in real trading.
One area to improve on is the apparent congestion of open trades. They are too close to each other. If possible, they must be spaced out evenly or a minimum distance should be set between the trades. When take profits are adjusted in the direction of winning trades, it would not be possible for trades to reach take profit. Trades will only be closed by the stop loss. Therefore, the expert advisor is better off not putting take profit targets at all on trades as it does not increase the winning chances or maximize profits. Not using take profits can help save computer resources.
In addition, the stop loss adjustment is not serving the trading account well. It appears stop losses are adjusted prematurely as can be seen in testing. Stop losses of trades should be moved ahead of the entry price so that winning trades can no longer lose money. In back test, stop losses of many trades were adjusted but the trades ended in negative profit regardless.