Fracture 740 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:
- Fracture 740 Expert Advisor For MT4
- The Fracture 740 Expert Advisor For MT4 – Entry Criteria
- The Fracture 740 Expert Advisor For MT4 – Exit Criteria
- The Fracture 740 Expert Advisor For MT4 – Room for Improvement
The Fracture 740 Expert Advisor For MT4 can be considered a scalping trading system as it opens and closes trades in a short amount of time. Quick money is realized by using relatively huge position sizes. The only time that trades stay longer than usual is when the trades are opened on the wrong side of the market. In this scenario, the expert advisor holds on to the trade until the market gives a minor pullback that will allow the robot to close the trades in minimal loss. This strategy poses huge risk to the whole account, though.
The Fracture 740 Expert Advisor For MT4 – Entry Criteria
The Fracture 740 Expert Advisor provides information on the chart that the user can refer to when monitoring the performance of the trading robot. As shown in the image above, the user can see the current drawdown, number of open trades, total profit and total loss in history, and the number of closed trades. Also, the user can check the lot size for the next trade and the current trend strength.
The expert advisor comes with a huge array of parameters in Inputs that the user can adjust as necessary to suit his trading style. The sheer number of parameters is staggering that it can easily overwhelm new algorithmic traders. To simplify the process of learning how to use this trading system, only the most important parameters are shown and explained below:
- CloseAll = false – This parameter is used as an override function in case the user wants to close all open trades when a certain profit or loss amount is reached. To do that, the value should be set to true.
- ContinueTrading = true – With this default setting, the robot would continue opening trades. Otherwise, no new trades will be opened.
- BaseLotSize = 0.01 – This value is not used as the lot size of trades. Instead, it is used in computing the margin requirement.
- TrendUsage = 0.1 – This value is multiplied to the free margin and the base lot size and then divided by the margin requirement to determine the actual trade lot size.
- MaxTrades = 9 – The robot can open up to nine trades in the current symbol.
- ATRTimeFrame = 0 – The ATR indicator is applied to the current timeframe.
- ATRPeriod = 14 – The period of the ATR is 14.
- ATRShift = 0 – The ATR value obtained has no shift.
- MATimeFrame = 0 – This setting means that the moving average is applied to the current timeframe.
- MA1Period = 5 – The first moving average has a period of 5.
- MA2Period = 9 – The second moving average has a period of 9.
- MA3Period = 18 – The third moving average has a period of 18.
- ADXTimeFrame = 0 – The ADX indicator is applied on the current timeframe.
- ADXPeriod = 14 – The ADX indicator has a period of 14.
The expert advisor uses at least three technical indicators to find a trade opportunity and qualify it for entry. All these indicators are familiar to most traders. How the signals are generated from these indicators is explained below:
- Average directional movement index (period 5, price median) – The value of the ADX is obtained from the current candle of the current timeframe and symbol. The ADX value needed is for the main line only. If the ADX is greater than 45, the search for trade entry continues. Otherwise, the trade search ends and no trade is taken.
- Average true range (period 14) – The ATR indicator is used to define the distance between the current market price and the previous trade before a new trade is considered. If this distance is equal to or greater than the ATR value for the current symbol and if the other entry conditions are satisfied, a new trade is executed.
- Fractals – The fractals indicator is applied to the current period and symbol. The expert advisor first determines if there is an up or down fractal in the last five candles. To confirm a buy trade, the close price of the current candle should be higher than the up fractal. To confirm a sell trade, the close price of the current candle should be lower than the down fractal.
When a trade signal has been generated, the robot will execute a trade with a lot size that is a factor of the current account balance. Usually, this lot size is higher than normal as observed in testing, so the user must make adjustments in Inputs so that the robot can assign an appropriate lot size. The trade entries opened by the robot have no stop loss and take profit.
It is possible for the robot to open multiple trades in a trade cycle, and the maximum number of trades allowed is 9 as declared in Inputs. When subsequent trades are opened, their lot sizes are normally lower than the immediately preceding trades. This strategy might be good if the trend makes a full reversal toward the entry point of the first trade. However, if the market makes only a minor correction before resuming the initial trend, the trading account could be subjected to large drawdowns.
Additional trades are taken when price has moved significantly far from the previous trade. This distance is not constant, and the user cannot specify it in Inputs. It is directly determined by the expert advisor by referring to the ATR indicator. At some point, when multiple trades have already been taken and the market starts to make a pullback, all open trades will be closed at once after some target has been reached. This target could be profit or loss objective. As can be seen in testing, trades are closed in loss instead of profit when price makes a minor correction.
The Fracture 740 Expert Advisor For MT4 – Exit Criteria
The Fracture 740 Expert Advisor uses the same set of technical indicators employed for trade entry when managing the open trades. When all the indicators give an opposing signal against the direction of the current trade, this trade is immediately closed but most often in profit. Trades are opened and closed by the tick, not on a new candle.
The Fracture 740 Expert Advisor For MT4 – Room for Improvement
The Fracture 740 Expert Advisor is a promising trading system profit-wise that needs some improvement to become safer to use in real trading. The main issue is the high lot size of the first trade in a trade cycle. Another method of calculation should be used to define this lot size. In addition, decrementing the lot size as trades are added is not common practice and might not be a practical strategy considering that strong trends do come from time to time. Possibly, the better way is to start with a small lot size and increment slowly as more trades are opened until the maximum lot size is reached. This type of change does not normally involve a full makeover of the code.
Another obvious flaw in this trading system noted in testing is the possibility of opening trades in quick succession in a very tight price range. This would not be a problem if the direction of the trades is correct. If not, the trading account could suffer heavy drawdowns or worse wipeout. Something must be done to address this issue. A minimum distance should be set between trades to give the last trade in the basket more room to run so that the whole set can be closed in profit. Implementing this change might affect several parts of the code.