Hedging Martingale 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:
- Hedging Martingale Expert Advisor For MT4
- Hedging Martingale Expert Advisor For MT4 – Entry Criteria
- Hedging Martingale Expert Advisor For MT4 – Exit Criteria
- Hedging Martingale Expert Advisor For MT4 – Rooms for Improvement
The Hedging Martingale Expert Advisor For MT4 is a pure martingale automated trading system. It gives users few settings to work with, making it suitable for beginner algorithmic traders. As a grid martingale system, it thrives in ranging market conditions but folds in trending times.
Simple in its design, the robot is not one that users should readily put aside as unworthy of attention. In fact, with sufficient run time and good funding, it is possible that investors can make some return on their investments if they put this robot to good use. The reason for this is the robot designer’s approach to money management. This robot lives by the mantra that markets range 70 percent of the time and trend 30 percent of the time. These figures are not very accurate but totally reasonable estimates.
Running the robot in back test does not yield a clean equity curve, but this ensures the account survives for a longer period of time, thereby giving it more chances of recovery. At the first sign of a trend development, the robot closes all trades for a loss and restarts the hedging strategy. Since market tends to range after an impulsive move in order to take a breather or make a reversal, this gives the robot an opportunity to recover the losses and make some money.
Hedging Martingale Expert Advisor For MT4 – Entry Criteria
As a pure martingale strategy, the robot does not use indicators at all to determine the direction of the trade or time the trade entry. At the open of a new candle, the robot places both buy and sell market orders at the same time without stop losses but with take profits. The take profit is placed at the distance set by the user (30 pips default) plus the stop level and spread of the current chart or symbol. At some point one of two possible scenarios happens. Either the take profit of the buy trade is reached, or the sell trade’s profit objective is attained. In both cases, the remaining open trade will be in negative territory.
While other martingale robots always put buy and sell orders on the chart, this robot only adds a trade if price has moved 30 pips away (default) from the previous trade. If the last trade is a buy, another buy order will be taken if price has dropped 30 pips below the previous buy trade. An opposite scenario exists for sell trades. The robot continues to add trades until the total open orders reach four at which point all trades are closed at the close of the current candle or until the set of trades reaches take profit.
The robot always sets take profit targets every time it adds a trade. When multiple orders of the same type (e.g. buy trades) are open on the current symbol, the robot will run multiple checks to ensure that the take profit prices of all these trades are at the same price. This price is obtained by adding to or subtracting the take-profit value from the latest trade’s open price.
Hedging Martingale Expert Advisor For MT4 – Exit Criteria
There are only two ways that trades are closed with this trading strategy. First, open trades are closed when they hit the common take profit price for a profit. Second, trades are closed when multiple orders reach the maximum number of 4 (default) for a loss. The second trade closure occurs at the open of a new candle.
When the trade or set of trades hits the take profit target, the trade cycle is completed and yields a positive result. The user might be surprised to learn that the price is closed beyond the number of pips (30 pips default) set at the outset. This is because the robot adds the stop level and spread to the take profit distance.
Hedging Martingale Expert Advisor For MT4 – Rooms for Improvement
This robot’s simplistic approach to money management makes it a viable trading tool for investors with big capital and with a long-term outlook. The robot does not provide quick, big returns nor offer overnight riches. Rather it is a slow-pace trading machine. It works in good time as it is founded on the widely accepted market truth that market ranges more than it trends. As long as the capital is intact, profit may come over time.
One possible improvement to this robot is to determine entry timing and trade direction. This way the robot is not frequently bucking the trend. This can be done by taking trades only in one direction as determined by a battery of indicators. Entering trades this way also offers better timing. Most likely, the robot will take fewer trades but with high probability of winning and less chances of liquidation.
If the suggestion mentioned in the foregoing paragraph is applied, the user may consider increasing the number of trades that triggers liquidation (default is 4) and disabling the variable that allows liquidation (i.e. CLOSEMAXORDERS). This action, though, is quite risky and is suitable only for advanced traders and should be implemented only after getting a good result in back testing and optimization.
Another area to look into is the trade size multiplier for subsequent trades. The default multiplier of 2 might hurt the trading account more painfully in times of trade-cycle liquidation than when the multiplier is reduced to 1.5, for example. Therefore, the user must determine the optimal trade volume multiplier through back testing and optimization.
One crucial thing that the user can do to improve the profitability of the robot and avoid account blowout is to carefully select the symbol on which to trade. Markets have unique personalities and tend to behave in a particular way. Some markets tend to trend while others move within a defined channel. Based on history, some markets can run very strongly in one direction with almost no correction (e.g. NZDUSD, USDCAD, EURAUD, GBPJPY and others). On the other hand, few assets tend to range, including EURCHF and GBPCAD. Research and chart analysis must be done to determine which pairs tend to range than to trend. In this way, the robot has higher chances of making money over the long haul.