Hedge Average 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:
- Hedge Average Expert Advisor For MT4
- The Hedge Average Expert Advisor – Entry Rules
- The Hedge Average Expert Advisor for MetaTrader4 – Exit Criteria
- The Hedge Average Expert Advisor – Suggestions for Improvement
The Hedge Average Expert Advisor for MetaTrader4 is a simple moving average crossover system that uses a unique trade management strategy to extract profits from the markets. The trading program is a fully automated trading system as it handles both trade entry and trade exit. The user may run the trading robot in both five-digit and four-digit trading accounts using the MT4 trading platform.
As the name suggests, the expert advisor trades both sides of the market for the selected trading instrument. The term “hedge” in this instance does not mean that the trading robot initiate two opposite positions with the same trade volume simultaneously. What it means is that the robot can open both buy and sell trades at the same time if the technical indicators concur.
The Hedge Average Expert Advisor – Entry Rules
The Hedge Average Expert Advisor performs preliminary assessments before hunting for trades. It looks at the two parameters that toggle the trading function on and off in the Inputs area to find out if one or two are enabled. If the buy parameter is enabled but not the sell parameter, only buy trades will be executed. If the sell parameter is enabled but not the buy parameters, only buy trades will be taken.
The expert advisor will trade only within the timeframe defined in Inputs. By default, start hour is 6:00 server time, and end hour is 20:00 server time. Then the trading robot inspects the current candle if it has just formed by comparing the open time with the value of a variable in the global area. Next, the program will count the current number of trades if it is less than the maximum set in Inputs. If the initial checks turn out well, the expert will refer to the technical indicators for trade direction.
The user will be presented with the following parameters the first time the expert advisor is dropped on the chart:
- Trade_buy = true – When this parameter is true, the expert advisor will open buy trades. If false, the robot will not open buy trades.
- Trade_sell = true – When this parameter is true, the expert advisor will take sell trades. If false, the expert advisor will not take sell trades.
- Start_Hour = 6 – This value can range from 0 to 23. This number is the server hour at which the expert advisor will begin trading.
- End_Hour = 20 – This value can range from 0 to 23. It marks the server hour on which the robot will cease trading.
- Tp_in_Money = true – This parameter can be set to true or false. If true (by default), the robot will forcibly close all open trades if the net profit is equal to or greater than the TP_in_money parameter below.
- TP_in_money = 2 – This figure is the amount of money in the deposit currency of the trading account. If the net profit of all open trades reaches this amount, the robot will forcibly close all trades.
- TP = 100 – This figure is in pips. A take profit of 100 pips is assigned to all trades taken by the robot.
- SL = 100 – This figure is in pips. A stop loss of 100 pips is assigned to all trades initiated by the robot.
- Max_order = 10 – This is the maximum number of buy trades and sell trades that the robot can execute in the trading account. It is possible for the robot to take a maximum of 20 trades at any one time.
- Lots = 0.1 – This is the fixed lot size of all trades, unless the user adjusts this value.
- TrailingStop_ = true – This parameter can be set to true or false. If true (by default), the robot will trail the stop loss of winning trades.
- TrailingStop = 20 – The stop loss of winning trades will be trailed when they gain 20 pips.
- Magic = 7 – This is the unique identifier of all trades taken by the expert advisor. This will make sure that the robot will handle only its own trades and not interfere with trades by other expert advisors on the same trading account.
- Period_1 = 4 – This is the period of the first moving average.
- Period_2 = 4 – This is the period of the second moving average
The expert advisor uses one set of moving averages to identify the trade bias. The settings of the technical indicator and the manner of use are described in the following:
- Simple moving averages (4 periods, simple method, price open and price close) – Two simple moving averages are used in this trading system. This moving average tandem looks like a channel on the chart (see image above). These indicators are applied on the current period and current symbol, and moving average values are obtained from the two previous bars. With this type of settings, the two moving averages can cross each other, and their relative placement defines the trend at any point in time. The trend is bullish if the close EMA is located above the open EMA, and the trend is bearish if the close EMA is situated below the open EMA. A signal for long entry is indicated if the close EMA crosses above the open EMA in the previous two candles, and a signal for short entry is given if the EMA crosses below the open EMA in the previous two bars.
If the moving averages provide a trade signal to any direction, the expert advisor will immediately send a trade request to the trade server. Along with this request is the specification for the trade volume, take profit, and stop loss limits. By default, each trade will have a lot size of 0.10, take profit of 100 pips and stop loss of 100 pips.
It is possible that trades will be added on subsequent candles after the first trade has been taken. The robot does not consider the order type of the previous trade when opening a new trade. As long as the entry rules are satisfied and a crossover has occurred in one direction, the robot will take the trade with the same lot size, take profit and stop loss values. Trade execution will continue until the trade count reaches the maximum number for either or both order types.
The Hedge Average Expert Advisor for MetaTrader4 – Exit Criteria
In addition to take profit and stop loss limits, the Hedge Average Expert Advisor actively manages the open trades. If a trade is winning and gains 20 pips, the trailing stop function comes into play. This will continue until the trade hits the predefined take profit limit or the newly adjusted stop loss. The expert advisor also uses a function to close one or more trades if the net profit is equal to or greater than two dollars (default TP_in_money value).
The Hedge Average Expert Advisor – Suggestions for Improvement
The Hedge Average Expert Advisor yields both positive and negative net profit in the back tester. This is possibly due to the duration selected for back testing. When a testing period of five months using one symbol and 15-minute timeframe is applied, the testing result in terms of net profit is a little negative. However, the other metrics do not look bad at all. The robot took 1,244 trades (around 250 trades per month), profit factor was 0.93, win rate was 76 percent, and the maximum drawdown was 27 percent.
Though the testing was done in a short span of time and in only one financial instrument and period, the result suggests that the trading system has good prospects if applied in an ideal market condition. The trading robot managed to survive despite using a trade volume of 0.10 and opening multiple orders in both directions. The user is advised to conduct longer testing to determine if the expert advisor can indeed generate profits and which variables will lead to profitable results.