Price Action Expert Advisor For MT4
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!
The Price Action Expert Advisor For MT4 is a simple expert advisor for MT4 platform. The name given to this robot might be a misnomer because it does not use any price action strategy in particular when entering trades. It does not even use candlestick patterns such as engulfing candles, inside bar and the like when looking for trades.
What the robot does when the Allow Sell and Allow Buy buttons are enabled is it takes a buy or sell trade right away and manages the trade until it is closed via the stop loss or take profit order. Once the previous trade is closed, it opens a new trade of a different type from the previous trade. If the previous trade is long, the next trade is short. This continues until the trader manually stops the robot.
This robot takes advantage of the statistically supported market truth that money management is key to success in trading and that trade entry plays a secondary role. However, the robot developer takes this maxim very seriously in that it puts all trade entry strategies into the background and played the game of trading purely by probability and statistics.
The Price Action Expert Advisor For MT4 – Entry Criteria
As already covered above, the Price Action Expert Advisor for MT4 does not take any signal from technical indicators or any price action analysis. If the current chart to which the robot is attached has no trade, the robot will place a buy trade first. Whether the previous trade wins or losses, the next trade in line is sell. The buy and sell alternation will go on without end.
Every time a trade is placed, stop loss and take profit orders are always put in place. The default trade volume for all trades is 1.0, which may be too high for a small account. The lot size is not adjusted with the growth or reduction of the account balance. The stop loss is set at a distance of 10 pips from the trade entry, while the take profit is put at a distance of 50 pips from the open price. The user can adjust this distance as he finds necessary. When the stop loss distance is adjusted, the take profit moves as well, but the take profit is always 5 times the stop loss by default. The user can change this by adjusting the value of the Leverage in the Inputs tab.
The Price Action Expert Advisor For MT4 – Exit Criteria
The Price Action Expert Advisor for MT4 relies on the stop orders (stop loss or take profit) for trade closure. Due to the small distance between the entry price and stop loss price, price more often hits the stop loss than the take profit. Therefore, the win rate of this robot is low. The exact value can be determined by back testing.
In the current setting, trailing stop is disabled. When the user changes the value of TrailingStop variable from zero to a bigger value, trailing stop will be automatically enabled. In that case, the stop loss will be adjusted from time to time as the number of pips gained in a trade increases. The optimal number of pips to be used for trail stop can best be ascertained by optimization in the strategy tester.
The Price Action Expert Advisor For MT4 – Rooms for Improvement
At present, the Price Action Expert Advisor for MT4 does not look promising in the strategy tester as the equity curve dwindles continuously from beginning to end and shows only very shallow recovery episodes until finally the account is blown out. Possibly, the trend in the active chart is weak, but there can be other reasons as outlined in the paragraphs below. Therefore, this robot is currently not suitable for real trading, even for demo trading, as the end result is predictable.
One way to improve its performance is by utilizing any widely accepted trade entry techniques. Using candlestick patterns such as shooting star, hanging man, dark cloud cover, engulfing pattern and inside bar can be a good starting point. Besides, the robot is touted to be a price action algorithmic trading system so it must use one type of price action method.
There are several instances during back test wherein trades almost reach the take profit price but price turned around for a loss. Profits gained could have been protected had the TrailingStop feature been enabled by default. Alternatively, the trader can reconsider the preset ratio between stop loss and take profit. Aspiring for profit five times the risk could be ambitious and not very practical for trading. Again, this can be discovered by optimization.
The default trade volume of 1.0 lot could be a problem for new traders especially for small accounts as this one setting alone can wipe out these accounts in no time. It is best to have the trade volume set at the lowest possible amount to avoid such disasters. The trader can adjust the lot size value anyway if bigger profit per trade is desired.
In addition, there are several bugs in the code that must be fixed. Some variables are defined but not really used in the program. There are no return statements for init, deinit and start functions. Also, the OrderSelect and OrderModify functions return an error. All this means that the program is old and needs update to become useful and bug-free.
Robots like this require users to be knowledgeable of MQL4 programming to be able to use them correctly. It is important that users understand why a robot behaves in a particular manner to save time and money. Sometimes names can be deceiving.
There are few settings that the user can tweak to get the best parameters that yield the best result. Performing an optimization in the strategy tester is always a good idea for the robot to reach its true potential. Optimization is a big leap in back-testing. While it takes a lot of time to run such testing, it will help the user see if the expert advisor being considered is really worth his time and money.