Martingale VI Hybrid 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:
- Martingale VI Hybrid Expert Advisor For MT4
- The Martingale VI Hybrid Expert Advisor For MT4 – Entry Criteria
- The Martingale VI Hybrid Expert Advisor For MT4 – Exit Criteria
- The Martingale VI Hybrid Expert Advisor For MT4 – Room for Improvement
The Martingale VI Hybrid Expert Advisor For MT4 is an ordinary martingale trading system that uses a pair of moving averages to define the direction of trades. This expert advisor is applicable to any major foreign exchange instrument and can work on any timeframe. If the user wants to use it in multiple instruments on the same trading account, one instance of the program should be applied to each one of those instruments. The robot will work just fine even if the user does not vary the magic number.
Anyone interested to use this expert advisor in trading can use a trading account opened in a forex broker using price quotes with either four or five digits for dollar pairs and two or three decimals for yen pairs. However, it is not safe to use the expert advisor now in live trading as it does not yield profits when run in the strategy tester. Positive results in back test, along with profitable outcomes in demo trading, are prerequisites to live trading because martingale systems of all types carry significant risks.
The Martingale VI Hybrid Expert Advisor For MT4 – Entry Criteria
The Martingale VI Hybrid Expert Advisor runs on every new candle if there are more than 100 bars on the chart and if automated trading is enabled. Otherwise, the program assumes a waiting mode until all these conditions are true. The expert advisor gives the user options just enough to control how the trading system operates. These options, their default settings and explanations are presented below:
- Take_Profit = 10 – Each trade initiated by this expert advisor has a well-defined take profit. This value is expressed in pips.
- PipStep = 10 – This number is the minimum distance between trades of the same type. The actual distance may be greater than 10 pips as trades are executed by the close of the previous candle.
- Lotsize = 0.01 – This amount is the initial lot size of all trades. It does not go up or down as the trading account size changes.
- Multiply = 2.0 – This value means that the subsequent trades are twice greater in lot size than the previous trades. This makes the trading system a full martingale strategy.
- CLOSEMAXORDERS = true – The user can set this value to true or false. If true, the robot will immediately close all open trades if the total number of orders reaches the maximum amount.
- MaxTrade = 4 – This is the maximum number of trades in the trading account. When this number is reached, the expert advisor will immediately close all open trades.
- Period1 = 1 – This number is the period of the fast-moving average used in this trading system.
- Period2 = 50 – This value is the period of the slow-moving average in use in the expert advisor.
- MagicNumber = 8095 – This integer is assigned to every trade taken by the expert advisor to enable easy identification of trades and make trade management and performance monitoring feasible.
The martingale expert uses a pair of moving averages when defining a trade entry. A signal for entry is generated every time the moving averages cross in one or the other direction. How the signal is interpreted is discussed below:
- Moving averages (period 1 and 50, simple method, price close) – Two moving averages are used for identifying a trade opportunity. Both indicators are applied on the current period and symbol. The values being used for generating a trade signal are for the previous bar. A sell entry is indicated if the fast EMA is below the slow EMA, and a buy entry is determined if the 1 EMA is above the 50 EMA.
The expert advisor performs several checks before sending a trade request. It looks at the stop out mode used, determines if the stop out level is not reached, and if the account free margin is not less than zero. If the result of these checks is positive, the robot sends the trade request, along with the trade parameters set in Inputs. During trade execution, only the take profit value is sent, not the stop loss value.
As set in Inputs, each trade is taken with an initial lot size of 0.01 lot. This value is increased every time a new trade is added. As a martingale system, the robot takes the trade volume of the previous trade and doubles it to arrive at a new trade volume for the next trade. Trade addition continues as long as a trade opportunity exists and if the maximum trade number is not reached, beyond which all open trades are liquidated for a net loss.
The Martingale VI Hybrid Expert Advisor For MT4 – Exit Criteria
The Martingale VI Hybrid Expert Advisor is actively performing the trade management as trades have no stop loss, only take profit. The moment a trade is taken, its take profit is set right away. Anytime a trade is added, trade modification is done by setting the take profit of all open trades to one price. This ensures all trades are closed in one go, marking the successful end of a trade cycle.
The Martingale VI Hybrid Expert Advisor For MT4 – Room for Improvement
The Martingale VI Hybrid Expert Advisor needs further testing to find the combination of settings that will yield positive results. At the moment, the trading performance is negative. Testing using seven months of historical market data was done to see if the robot returns a profit. The result was negative.
The expert advisor executed 795 trades in the whole duration of the testing period, averaging more than 100 trades per month. Drawdown was only 2.5 percent, win rate was huge (71 percent), but profit factor is less than one (0.80 to be exact). A profit factor of less than one means the trading system is not profitable.
The primary reason for this negative result is the application of an exit strategy that instructs the expert advisor to close all trades even at a loss if the maximum number of trades is reached. While this strategy aims to protect the trading account from total failure, the downside is that it actually brought huge losses to the trading account. This is evident in the strategy tester. Every time the maximum number of trades was achieved, the equity curve abruptly fell down, and it happened nine times throughout testing.
The user can do his own testing to try to find the elusive combination of settings that will yield positive results. It is a good idea to investigate multiple timeframes and symbols using different combinations to see if the robot will generate profits. If the user is knowledgeable, he can use the advanced optimization function in the strategy tester to find the optimal settings. However, the maximum limit of trades allowed must need to be addressed either by the user himself or the program creator.
Additionally, relying on one set of indicators to determine a trade entry might not be enough. Multiple technical indicators must be used to find the best entry that will give each trade a high degree of success. In this way, the trading account would not have to handle multiple trades with negative profit until the maximum limit is reached.
There are many indicators that can help the moving average in this regard. These indicators include stochastic, relative strength index, average directional movement index, parabolic SAR, moving average convergence divergence and others. The user can even use support and resistance indicators, volume, candlestick patterns, price action strategies and a whole lot more.