Pending Order Grid 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:
- Pending Order Grid Expert Advisor For MT4
- The Pending Order Grid Expert Advisor For MT4 – Entry Criteria
- The Pending Order Grid Expert Advisor For MT4 – Exit Criteria
- The Pending Order Grid Expert Advisor For MT4 – Room for Improvement
The Pending Order Grid Expert Advisor For MT4 attempts to enter the market in the direction of the trend by placing pending orders at certain grid levels. These pending orders are buy stop and sell stop orders. By default, the expert advisor will open a total of 400 pending orders on the active symbol, half of which is buy stop orders and the other half is sell stop orders. Because of this, running the expert advisor will use a lot of computer resources, which might cause the computer to freeze.
As this robot demands so much disk space and computer memory, it will not be suitable for use in slow computers. This issue will also prevent or limit testing the program in the strategy tester. However, the algorithm seems to be working fine when this trading system was run for a short period of time in testing.
The Pending Order Grid Expert Advisor For MT4 – Entry Criteria
The Pending Order Grid Expert Advisor uses simple coding to run its algorithm. The following list enumerates the variables that the user can adjust in the Inputs tab the moment the expert advisor is dropped on the chart or when the user clicks on the smile icon on the upper-right portion of the main chart. The user has freedom to tweak the available settings to find the best combination or run the program with minimal use of computer resources.
- StartingLot = 0.01 – Each order initiated by the expert advisor has a lot size of 0.01.
- DistanceFromPrice = 0.0010 – This value is the distance between the current market price and the first buy stop and sell stop orders. This number is equivalent to 10 pips.
- SpaceBetweenTrades = 150 – This figure, expressed in points, is the distance between orders.
- NumberOfTrades = 200 – This number equals the total number of pending orders placed by the robot on the chart.
- Takeprofit = 200 – This value, expressed in points, refers to the take profit for each trade. This is equal to 20 pips.
- StopLoss = 9999 – This value, given in points, refers to the stop loss of each trade. This is equal to 999.9 pips.
- TrailingStop = 150 – A market order will have its stop loss trailed in the profitable direction if it has earned 150 points, or 15 pips.
- TradeLong = true – The expert advisor will execute buy stop orders only when this variable is true.
- TradeShort = true – The trading robot will initiate sell stop orders only when this parameter is true.
- Magic = 1 – This unique number is assigned by the expert advisor to each trade for easy identification and management of trades.
The expert advisor is not utilizing any technical indicators to define trade entries. Orders are placed automatically without regard to price location, price action or technical analysis. By default, a lot amount of 0.01 is used, but the user can set another value as he deems suitable. He can adjust the other settings such as take profit and trailing stop values, but this should be done in consideration of other related factors such as the stop loss and number of trades.
The Pending Order Grid Expert Advisor For MT4 – Exit Criteria
The Pending Order Grid Expert Advisor puts the stop loss of each trade at a significant distance from the entry price, which is almost 1000 pips, in hopes of not incurring losses. That is why the take profit target is placed just nearby, that is, 20 pips to secure a winning trade each time. This money management strategy might subject the trading account under large drawdowns. As can be seen in the strategy tester graph, the balance line pushes strongly upward almost in a straight line while the equity line stays a little below the breakeven point.
Since the trailing stop function is available and enabled by default, the stop loss of winning trades will be shifted to the entry price when it gains at least 15 pips and beyond the entry price when more pips are gained. In fact, the stop loss adjustment occurs on every point of movement in the direction of the trade. This might not be true in demo or live trading when each tick comes in varying number of points.
The Pending Order Grid Expert Advisor For MT4 – Room for Improvement
Testing done on the Pending Order Grid Expert Advisor was too short in duration because the computer hung up mostly due to unavailability of disk space. As a result, the computer had to be restarted several times since files cannot be written on the hard drive. This continued for some time until testing was stopped altogether in view of this nagging issue.
This means that testing was not completely done, so this article cannot provide an insight as to the profitability of this expert advisor. There might be a need to recode the program to resolve the above issue and make it usable to users using computers with limited capacity.
One obvious area to work on is the total number of orders placed on the chart. Having a total of 400 trades will put too much strain on the computer where the client terminal is running. This might cause the computer to crash, adversely affecting the performance of the terminal and the robot. This type of error might bring about losses to the trading account if not addressed immediately.
The principle behind this trading system is known as mean reversion. This principle postulates that what comes up must come down. In other words, when price goes up, it will eventually go down, or if price goes down, at some point, it will go back up. As observed in testing, the equity line is continually going down although the balance line is going up when the market trades in one direction. However, when the market makes a reversal or just a pullback, the equity line attempts to approach the balance line. It is possible for the trading system to reach breakeven or even beyond if price completely changes direction.
Therefore, the user must study the trading instruments carefully. He must find the markets that are more inclined to range than to trend and avoid those markets that trend strongly when they do trend. Examples of markets that tend to trend are NZDUSD, EURAUD and USDCAD. Some examples of markets that tend to range are EURCHF and GBPCAD. These tendencies change from time to time, though.
Since the expert advisor might perform well on ranging market, the user must use technical indicators that work effectively in ranging conditions. These indicators include the oscillators such as the relative strength index and stochastic. Using this trading system, the user might find consolation in knowing that markets range around 75 percent of the time but trend only about 25 percent of the time. This information is a widely known fact in the trading world.
If the user is knowledgeable with the MQL4 programming language, he can incorporate the technical indicators above himself. If not, he can consider asking someone capable or hiring his service. While placing orders at certain levels is common practice, it might not be effective in the long run. A better way to do this is to set a minimum distance between orders and not plotting them at the get-go. It is a good idea to hide these price levels from the eyes of bad actors to make the strategy unpredictable. This is crucial if the trader is not trading with an ECN account. Market-maker brokers might play tricks against their clients, which is another well-known fact.
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