Gonna Scalp 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:
- Gonna Scalp Expert Advisor For MT4
- Gonna Scalp Expert Advisor For MT4 – Entry Criteria
- Gonna Scalp Expert Advisor For MT4 – Exit Criteria
- Gonna Scalp Expert Advisor For MT4 – Rooms for Improvement
The Gonna Scalp Expert Advisor For MT4 is an expert advisor available for free download at mql5.com. It can be used to trade any of the 28 foreign exchange major pairs and can be applied to any timeframe in MetaTrader 4 platform.
Designed as a scalper, Gonna Scalp Expert Advisor is a complex algorithmic trading system. It will open trades based on at least six built-in Metatrader indicators (i.e. MACD, OsMA, ATR, Stochastics, CCI and Momentum). The robot will open one order at each new candle if the entry criteria are met. Additional trades may be taken in subsequent candles until the maximum number of trades set by the user (default 5) is reached. It is possible to have both buy and sell orders open in one trading cycle, and the robot manages each trade individually.
Gonna Scalp Expert Advisor For MT4 – Entry Criteria
Gonna Scalp Expert Advisor for MT4 will execute buy and sell market orders only. Pending orders are not used. Although the robot checks the six indicators for signal in every new candle, it is not necessary that all six indicators give similar signals for trade entry. The robot will check the signal from each indicator and then determine if there are more buy or sell signals. If there are more buy signals, the robot will execute a long trade. Conversely, if there are more sell signals, the robot will trade short.
The above visual shows an example scenario where a buy trade can be taken. The majority of indicators suggests a buy signal.
The technical indicators being used in getting trade signals are explained below:
- MACD (12,26,9) – The robot will check the position of the MACD line against the signal line for the previous candle. For a buy signal, the MACD line can be above the zero line or below the zero line as long as it is above the signal line. For a sell signal, the MACD line can be below the zero line or above it provided that the signal line is below the MACD line.
- OsMA (12,26,9) – The moving average of oscillator (OsMA) has standard settings but is applied to the open price. The value of the previous candle is checked for signal. A positive value is taken as a buy signal, while a negative value is taken as a sell signal.
- ATR (12) – The ATR values of the previous and current candles are checked. If the current value is greater than the previous value, a buy signal is generated. If the current value is lower than the previous value, a sell signal is generated. Said another way, if the ATR is sloping upward, that is taken as a long signal, and sloping downward as short signal.
- Stochastics (5,3,3) – This indicator is not being used to give signal due to coding oversight. The indicator will give two possible signals depending on the location of the main line. The signal line is not checked. Only the value of the main line for the current candle is checked. If the main line is below 12 (oversold), a sell signal is generated. If the main line is above 88 (overbought), a buy signal is generated. These two signals seem counterintuitive. If the main line is above 50 and below 88, the signal will depend on a custom indicator that is not called out. If the main line is below 50 and above 12, the signal again will depend on the same custom indicator that is grayed out.
- CCI (20) – The period used is 20 but applied to typical price. Two values of CCI are compared (i.e. previous candle and current candle). If the current value is greater than the previous value (i.e. sloping up) but less than 75 (i.e. not overbought), a buy signal is generated. If the current value is less than the previous value (i.e. sloping down) but greater than -75 (i.e. not oversold), a buy signal is generated.
- Moving averages (1,5) – Default periods used are 1 and 5, but the averages are applied to the next lower timeframe where the robot is currently attached. MA method is linear weighted, and price is applied to Typical. A buy signal is generated if MA(1) is greater than MA(5) on the next lower timeframe and vice versa for sell signal.
- Momentum (14) – The period used is 14 and applied to close price. This indicator is one of the main trade triggers. A trade signal (either buy or sell) is generated if the momentum value of any of the three previous candles is less than the value set by the user (default is 0.3).
All the first six indicators above will be checked for buy or sell signal, and then the signals are consolidated to come up with a trade bias. Once there is more buy or sell signals, the robot will check if Momentum(14) is below a value set by the user. If the last condition is satisfied, either a buy or sell trade is taken depending on the trade bias.
The robot will take as many trades as the user sets in the Input. The default is five trades. It is possible that the five trades are all buy trades, or all sell trades. A combination of buy trades or sell trades is possible. However, a trade is only added at the next candle as long as the entry criteria are met.
Gonna Scalp Expert Advisor For MT4 – Exit Criteria
Each trade taken will have a stop loss and take profit based on the number of pips defined by the user. Default stop loss is 200 pips, and default take profit is 200 pips. These trades will be closed automatically once price hits either the stop loss (for a loss) or take profit (for a gain).
The robot may close all open trades collectively. This will happen if the current drawdown is greater than the tolerable risk set by the user. This risk is defined by the TotalEquityRisk parameter, which is set to 1 percent by default.
By default, breakeven and trailing stop are enabled. These functions are being managed by the robot individually. If a trade is profitable and gains 30 pips, stop loss is moved to breakeven or entry price. If this trade gains 10 more pips (total 40 pips gained), stop loss is moved further to lock in 10 pips of gain. This continues until price hits either the new stop loss or take profit.
Gonna Scalp Expert Advisor For MT4 – Rooms for Improvement
Gonna Scalp Expert Advisor for MT4 has a lot of room for improvement. Trading the robot with the default settings will lead to gradual erosion of account balance. This is largely due to the very tight TotalEquityRisk of 1 percent. If increased to 5% or 10%, the account can survive with minimal loss or minimal profit. Still the overall result is not attractive for professional investors.
Many things must be done to make this robot profitable. One way to do that is to take a new trade only after the previous trade is profitable. This is a good idea since the robot is basically a momentum trading system. If the market goes against the previous trade, a new trade can be taken at a predetermined distance away from the initial trade. This will avoid the scenario where trades are closely bunched together, which is the current case.
Another way to improve the robot is to check and compare only the values of the previous candles. The value of the current candle is not reliable as a signal for direction. This is the issue with the ATR indicator, whose line repaints when averaged.
Since this robot does not require all indicators to give similar signals at the same time, there should be a threshold number (e.g. 5) where the robot accepts as trade trigger and there should be more indicators being used (e.g. ADX, parabolic SAR, RSI, etc.). That will ensure that many indicators confirm the trade. Another issue in this robot is that the stochastic does not contribute to the signal-generation process due to the removal of the iCustom function.
In addition, the moving averages used in this robot are being applied to the next lower timeframe, which is not really useful or necessary. It is best to use a short-term moving average (e.g. 20 EMA) for momentum and a long-term moving average (e.g. 200 EMA) for direction in the current chart that will determine the timing and bias for the trades. All the other indicators above should be used for confirmation.