Multi Levels Trend 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:
- Multi Levels Trend Expert Advisor For MT4
- The Multi Levels Trend Expert Advisor For MT4 – Entry Criteria
- The Multi Levels Trend Expert Advisor For MT4 – Exit Criteria
- The Multi Levels Trend Expert Advisor For MT4 – Room for Improvement
The Multi Levels Trend Expert Advisor For MT4 opens one trade at a time when one uses the default settings. It might be possible for the trader to see trades in different price levels if he changes the number of maximum trades in Inputs to a value higher than one. As shown in the above visual, this trading system uses a simple logic. It only requires price to cross up or down a long-term moving average to open a trade in the direction of the crossover. It does not wait for the current candle to close on the other side of the moving average.
Running the expert advisor in live trading with the default settings is not advisable at this time. The trading system failed miserably in testing in terms of profitability. The direction of the equity curve was down, and the robot did not show any sign of recovery at any point in testing. Further testing must be done to determine if there are settings that could produce profits for the trader.
The Multi Levels Trend Expert Advisor For MT4 – Entry Criteria
The Multi Levels Trend Expert Advisor performs its trading operations on every new candle. Trade entry and trade closure are both done at the formation of a new candle if a trigger for such action has been found. On each candle, the expert advisor looks at the open trade first, if there is any, and attempts to close the trade by the signal from the technical indicator.
The expert advisor provides the user with some information that he can use to track the progress of the trading system. On the upper-left portion of the chart, the robot writes a comment containing the number of buy and sell trades, lot amounts for buy and sell trades, current balance and equity, margin, margin percent and current time.
Before the expert advisor is placed on a chart, the user is presented with options to adjust or refer to for guidance on the possible workings of the trading system. The user can use the default settings in testing so he can get a feel of the robot at first and then make adjustment later by accessing the expert settings. Some of the most important parameters are outlined below to guide the users:
- Lots = 1 – This value is the lot size of the initial trade in a set of trades.
- L1 = 1 – If there is already one trade open on the current chart, this value is multiplied to the initial lot size to get the lot size of the next trade.
- L2 = 2 – If there are already two trades open on the current symbol, this value is multiplied to the initial lot size to get the next lot size.
- L3 = 4 – If there are already three trades on the current symbol, this value is multiplied to the initial lot size to determine the lot size of the next trade.
- L4 = 8 – If there are already four trades on the current chart, this value is multiplied to the lot size of the first trade to get the next lot size.
- TP = 2100 – This parameter does not refer to the take profit of trades. Instead, it refers to the minimum distance in points between the previous trade and the current price before another trade is taken.
- allowSL = false – By default, this variable is set to false. If true, the expert advisor will use the value in the SL variable when defining the virtual stop loss of trades.
- maReversal = true – Since this variable is true, the robot will forcibly close an open trade if the previous candle closes either above or below the EMA.
- SL = 600 – If the allowSL variable is set to true, the robot will use a virtual stop loss of 600 points (or 60 pips) to close a trade.
- MAP = 500 – An exponential moving average in use in this trading system has a period of 500.
- MaxTrade = 1 – With this value, the robot can only execute one trade at a time.
- TradeType = 0 – For this parameter, the user can choose 0 (with the trend), 1 (buy) or 2 (sell). The default setting is trend with the trend.
- CloseProfitableTradesOnly = false – If this parameter is true, the robot will close a trade if it has gained a certain amount of profit.
- ProftableTradeAmount = 1 – The robot will close a trade if it has earned this amount of profit.
The expert advisor uses one technical indicator for both trade entry and trade exit. This technical indicator is the one of the most familiar indicators in technical analysis, which is the moving average. How the signal for entry and exit is generated is explained below:
- Moving average (period 500, exponential mode, price close) – An exponential moving average is being used by the trading system to define a trade entry and to close an open trade. The moving average value needed in computation is derived from the previous candle of the current timeframe and symbol. If the current candle price is above the moving average, a buy signal is generated. If the current candle price is below the moving average, a sell signal is obtained.
When the moving average has provided a trade signal, it is executed automatically by the expert advisor without looking for confirmation from other tools. However, a trade can only be opened if there is currently no open order on the current symbol. The opened trade will have a lot size of 1.0 lot as defined in Inputs. If the user finds this trade volume to be too high for his trading account, he can set a lower value. By default, this trade has no stop loss and take profit.
The Multi Levels Trend Expert Advisor For MT4 – Exit Criteria
As already pointed out, the Multi Levels Trend Expert Advisor checks on every candle if a trade can be closed or not. Trade closure is an operation that is actively managed by the expert advisor. This is because the robot does not attach stop loss and take profit values to its trades upon entry or at some point later. An open trade is closed whenever an opposite signal is provided by the moving average. For example, if the current trade is a buy and the current candle breaks below the moving average, the buy trade is closed immediately. The same thing is true for the sell trade. Normally, the trade closed this way results in loss as shown in testing.
The Multi Levels Trend Expert Advisor For MT4 – Room for Improvement
The Multi Levels Trend Expert Advisor does not look interesting from the moment the testing started. This is because the majority of the first 40 trades opened by the robot resulted in loss right away. This is evident when one looks at the graph in the tester. The balance line was falling like a knife since the beginning. Considering that the expert advisor executes trades with a starting lot size of 1.0, the account balance can get eroded in no time.
At the end of testing, the equity line ended considerably far below the starting balance, and the report showed only a small portion of the account was left after testing. Drawdown was very high, and win rate was very low (around nine percent). These metrics show that this trading system should not be used at all in trading if its code is not subjected to thorough review and overhaul.