Open Two Pending Orders 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:
- Open Two Pending Orders Expert Advisor For MT4
- The Open Two Pending Orders Expert Advisor For MT4 – Entry Criteria
- The Open Two Pending Orders Expert Advisor For MT4 – Exit Criteria
- The Open Two Pending Orders Expert Advisor For MT4 – Rooms for Improvement
The Open Two Pending Orders Expert Advisor For MT4 is an easy-to-use automated trading system for MT4 platform. As the name suggests, the robot simply opens two pending orders, one buy stop order and one sell stop order, the moment it is attached to a chart symbol. It does not wait for a new candle to form before it takes action. The user does not even need to adjust any settings in the Inputs tab. The default settings work just fine. Therefore, anyone even with limited trading experience can use this robot shortly after doing a fairly quick testing.
The Open Two Pending Orders Expert Advisor For MT4 – Entry Criteria
When a new tick comes in, the Open Two Pending Orders Expert Advisor for MT4 starts its operation by determining the trade volume and checking if this volume is within the allowable range. This range is the minimum and maximum volumes set by the broker for the specific type of trading account. This check is necessary to avoid a common error when using robots, that is, invalid lots amount. Dynamic lot sizing is enabled by default, so it is the robot that will determine the lot size for every trade and the amount set by the user will be overlooked. The lot size is tantamount to the equity percent selected by the user (2% default) in consideration with the stop loss distance and the account balance.
After computing for the lot size, the robot will immediately place two pending orders on the chart. One is a buy stop, and one is a sell stop. The buy stop is placed 5 pips above the ask price, while the sell stop is put 5 pips below the current bid price. Accompanying the orders are individual stop losses and take profits (see image above). The user might see several lines on the chart, but they are not live orders yet. The stop loss for each trade is placed at a distance of 10 pips, and the take profit is put at a distance of 30 pips. After this, the robot switches to a waiting mode until price touches one of the two pending orders.
The robot does not take signals from any technical indicators nor uses any type of price action strategy to determine trade direction and time the entry. As long as the trading account has no open order for the current symbol, two pending orders will be executed at once. The system does not have a schedule in opening and closing pending orders. The pending orders will remain on the chart if not converted to market orders and will not expire.
The Open Two Pending Orders Expert Advisor For MT4 – Exit Criteria
As already mentioned, the Open Two Pending Orders Expert Advisor for MT4 works very simply. After some time one of the two pending orders will get executed and becomes a market order. Once done, the other pending order will be deleted from the terminal, and the robot will start managing the live trade.
A trade is closed when price hits either the stop loss or take profit. When price hits the stop loss of the open trade, it will be closed at a loss. Then another trading cycle begins with the robot placing two pending orders. Sometimes trades are closed not in the original stop loss price though. This happens if the trading system uses a trailing stop function.
If the live trade discussed earlier happens to be profitable and gains at least 5 pips, the stop loss will be adjusted first to breakeven price or at the open price. When more pips are gained, the stop loss will be adjusted even further. The robot will maintain a distance of 5 pips between the market price and the stop loss price until market price hits either the newly adjusted stop loss or the desired take profit target (30 pips default). Since the take profit objective is placed significantly far from the entry price as compared to the original stop loss price, stop loss adjustment may be done several times. If the market trend in the trade direction is relatively strong, the take profit target may be hit instead of the new stop loss.
The Open Two Pending Orders Expert Advisor For MT4 – Rooms for Improvement
The Open Two Pending Orders Expert Advisor for MT4 could use further development to become profitable. Using the current settings in the strategy tester does not look promising at the moment. The equity curve is seen continuously dwindling toward zero. This might come as a surprise to anyone who is aware that pending orders are better trade entries than market orders. This is because it is the market that decides which direction to take. With a stop order, the trader does not impose his will on the market. He lets the market call the shots and observes. There could be other factors that influence the outcome of the testing.
One possible reason for bad trading performance in testing is the symbol chosen. The period selected during the time of testing for the chosen symbol might be ranging. It is important that the trading system is implemented in an asset that is trending to give it more winning chances. One example of such pair is the EURCHF. Another is GBPCAD; the downside is the huge stop level. Still finding a trending market is easier said than done as no one can predict what the market will do next.
Another area to look into is the trading session. Placing trades all the time might not be good for this system. Perhaps letting the robot run during certain times of the day or trading sessions might reduce the number of losing trades or increase the number of winning trades, or even both. However, this plan will take some time as it requires editing the code.
Finally, even with the current settings, the only way to know for sure if the robot works or not is by doing testing using optimization. To realize its true potential, the robot should be set to its optimal parameters, and this can be determined only by optimization. While this will take some time, the waiting time might result to a dramatic improvement in the robot’s performance, making it a viable trading system option for traders and investors.