Currency Strength 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:
- Currency Strength Expert Advisor For MT4
- The Currency Strength Expert Advisor For MT4 – Entry Criteria
- The Currency Strength Expert Advisor For MT4 – Exit Criteria
- The Currency Strength Expert Advisor For MT4 – Rooms for Improvement
The Currency Strength Expert Advisor For MT4 is a simple expert advisor with few settings. It is designed for use by swing traders who don’t have enough time to monitor trades as they go live. Once the robot is attached to a chart, it executes buy and sell trades as long as the entry conditions are met regardless of the time of day.
The user does not have to attach the robot to multiple charts in order to take multiple orders because it runs through the 28 major pairs to check for entry. At any one time, the robot can take as many as 26 trades on a given day provided that the entry criteria are satisfied. However, only one trade is taken per symbol.
The Currency Strength Expert Advisor For MT4 – Entry Criteria
The robot does not take signals from any technical indicators when looking for trade entries. The trade direction fully depends on the currency strength as defined and computed by the robot. When the expert advisor is first dropped on the chart, it immediately checks each symbol of the major pairs to see if the pair is bullish or bearish. This bias is based on the relative position of the open price and close price of the current candle on the daily chart. If the current candle opens low and then later moves up, it is a bullish signal. If the current candle opens high and subsequently moves down below the entry price, it is taken as a bearish signal.
The 28 major pairs are put into eight different groups, with each pair in the group containing a specific currency (i.e. EUR, GBP, AUD, NZD, USD, CAD, CHF, and JPY). The bullish or bearish signal of each member of the group is averaged to come up with a currency strength value. This is the value being displayed on the chart alongside each currency, and this value is being updated in real time. It is possible that trades are opened immediately after attaching the robot to the chart. Trades may be added later as the value of the currency strength reaches a certain threshold.
Trades are not executed based on the currency strength value per se. Twenty-six pairs out of the 28 major symbols are being checked by the robot for entry on every tick. If the difference between the raw currency strength of one currency (e.g. CAD) and the currency strength value of another currency (e.g. JPY) is greater than 0.5 (default diff_val value), a market order will be sent for the currency pair (i.e. CADJPY). The specific type of order (i.e. buy or sell) depends on whether the current daily candle is bullish or bearish.
The Currency Strength Expert Advisor For MT4 – Exit Criteria
The robot does not set stop loss and take profit for the market orders being opened as designed. By default, the trailing stop function is also disabled, unless the user deliberately turns the function on in the Inputs tab. All this means that the open trades can be closed only manually or with the use of a script directly applied by the user. That is why the trader must check the trades before the trading day closes to manage the trades individually or collectively.
The Currency Strength Expert Advisor For MT4 – Rooms for Improvement
It is not possible to run the robot in back tester to see its performance over some period of time. This is due to the fact that it takes the 28 major pairs into consideration when looking for trade entries. The only way to determine the profitability of this robot for real trading is to do demo trading. It is best if this is done on a virtual private server so that the robot can run without interruptions.
This robot uses a different way of determining currency strength when compared with other robots and indicators available online. One possible flaw in this robot’s currency strength calculation is its sole reliance on the current open candle on the daily chart in measuring currency strength. This is not very reliable as the current candle can change color so quickly, so does the daily trend. Therefore, it is better to use the previous candle in the currency strength computation.
It is advisable that the trader uses a small trade volume and a big capital when using this robot so that the running profit fluctuation would not severely affect the account. Setting a bigger value for the difference between values of currencies is a good idea to lower the number of trades open at any one time in the trading account. This would lead to higher probability trades, lower drawdown and reduced risk of account blowout.
To effectively protect the trading capital, the user must consider enabling the SLTP function so that the robot will actively put stop loss and take profit targets to all open orders. This will give the trading account more chances of survival for the long term. When such function is activated, the account would do better if the user also sets the take profit distance bigger than the stop loss distance. A risk-reward ratio of at least 1.5 is widely accepted by traders worldwide. Statistically, the higher the ratio the better. It will give the trading account better chances of making money over a significant run time.
As designed, the robot can take trades at any time of the day. This might not be optimal as trading activity varies by the time of the day or market session. It is better if the designer uses the market session as a trade filter. Normally, trading volume pours in during London and New York sessions so it is best if the user is given the option to select the start time and end time of trading at the outset.
Additionally, the volume indicator can be used as another trade filter as it gives indication of market volatility. Higher volume means more trading activity. The threshold value of the volume to be used can be set to daily or another timeframe. However, this can be ascertained only via demo testing and chart study.