Program AIGrid System 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:
- Program AIGrid System Expert Advisor For MT4
- The Program AIGrid System Expert Advisor For MT4 – Entry Criteria
- The Program AIGrid System Expert Advisor For MT4 – Exit Criteria
- The Program AIGrid System Expert Advisor For MT4 – Room for Improvement
The Program AIGrid System Expert Advisor For MT4 is a grid trading system for MetaTrader4 that uses a simple approach to money management. It utilizes static position sizing instead of employing the martingale style. It enters the market using pending orders, that is, buy stop and sell limit orders above market price and sell stop and buy limit orders below market price.
This type of trading strategy relies on the principle of mean reversion to make money and survive drawdowns. This is because the trading system makes use of take profit but not stop loss. With this trade management approach, the trading system will show a steadily increasing balance curve, meaning consistent profit added to the account, and a steadily decreasing equity curve, meaning persistent drawdown.
The drawdown will go away once the market returns to the mean and make a complete reversal. If it only makes a retracement, the drawdown may continue unless the user intervenes and accepts some losses here and there. As shown in testing, the robot can make money for the trader, but the degree of profitability is low. At some point, losing trades must be liquidated and the realized net profit must be determined. Users must find a way to address the drawdown to see a more profitable trading strategy.
The Program AIGrid System Expert Advisor For MT4 – Entry Criteria
The Program AIGrid System Expert Advisor drops five buy stop and sell limit orders above price and five sell stop and buy limit orders below price the moment it is run on a chart. These orders come in pairs. Each pair of buy stop and sell limit orders has the same price, and each pair of sell stop and buy limit orders has the same price. As defined in Inputs, the distance between orders is 20 pips, and each order has a take profit of 50 pips but no stop loss.
As a complex trading system, the AI Grid provides a wide range of variables in Inputs that the user can work with in his quest toward profitability. The most important variables are extracted and presented below to reduce the learning curve of users:
- MagicNumberGrid = 10001 – The robot gives this number to each trade for easy identification.
- Lots = 0.01 – Each order has a lot size of 0.01.
- ConsiderSpread = false – Since this value is false, the robot will not look at the spread during trade search and entry.
- GridSize = 20 – The distance between orders is 20 pips.
- BaseTakeProfit = 50 – Each order comes with a take profit of 50 pips.
- Slippage = 2.5 – This is the maximum slippage allowed for trade entry.
- GridSteps = 10 – This parameter instructs the expert advisor to put 10 orders above price and 10 orders below price. Since orders come by pairs, there will be 5 pairs of orders above and below price. Each pair consists of stop and limit orders.
- StopLoss = 0 – The default setup is no stop loss for all orders unless the user sets a positive number here in pips.
- wantLongs = true – This parameter means that there will be buy stop and buy limit orders.
- wantShorts = true – This parameter means that there will be sell stop and sell limit orders.
- wantBreakout = true – This parameter means that there will be buy stop above price and sell stop below price.
- wantCounter = true – This parameter means that there will be buy limit below price and sell limit above price.
When a pair of orders is converted to market orders, another pair of orders is opened and added to the last pair of orders to take the place of the triggered trades. Since each pair of orders has a similar price, it is possible to trigger each order tandem at the same time. When a trade hits take profit, another order takes its place, maintaining 20 pending orders on the chart at all times.
Some information is displayed on the main chart to help the trader track time. On the lower-right portion of the main window, the user can see the current date and time on the broker side as well as the day of the week. The day counting is equal to how the client terminal numbers the days of the week (Monday 1, Tuesday 2, Wednesday 3, Thursday 4 and Friday 5).
The Program AIGrid System Expert Advisor For MT4 – Exit Criteria
Since the Program AIGrid System Expert Advisor does not assign a stop loss to each order, market orders are closed by the take profit only, resulting in trades closed in profit all the time. Because of this, the balance line and equity line in the Graph tab of strategy tester diverge most of the time. While the balance line is going up, meaning profit is added to the account balance, the equity line is going down, meaning drawdown is growing. Due to the increasing negative profit, the money added to the account does not hold much value until the hanging trades are taken care of.
If price continues moving in one direction and trades keep piling up, the drawdown might reach dangerous levels that the account cannot hold. For this trading system to succeed over the long haul, the market must reverse to the mean or the user must intervene to let old trades go in loss. The last action is necessary if the market only makes a minimal pullback and continues moving in the initial direction.
The Program AIGrid System Expert Advisor For MT4 – Room for Improvement
To determine if the Program AIGrid System Expert Advisor can generate profits for the trader, testing was done over five months of historical data in EURUSD 15-minute chart and using 10,000 capital. At the end of testing, the robot made some money, so one can say it is profitable. However, the level of profitability was low. The net profit during the test period was four percent, resulting in 0.8 percent monthly profit. This shows that the return on investment is very low.
In the test report, the drawdown was around nine percent, which is acceptable, and the win rate was around 85 percent, which is high. However, the win rate has no value here since trades have take profit but no stop loss. While the 85 percent winning trades were closed by the take profit, the other 15 percent losing trades were closed by the tester at the end of testing.
When one is familiar with MQL4 coding, he can easily see that this program is old. This can be figured out when one opens the code in the MetaEditor and compiles the program. However, some statements are removed or updated to remove warnings in the toolbox. It appears the program contains more functions than one can see in the above list. However, these functions are disabled by default. The user might want to explore these functions and see if they can help improve the trading performance. These functions are related to trade entry and exit. They refer to technical indicators such as moving average, parabolic stop and reverse, and moving average convergence and divergence.
The user must understand that most trading systems work on one condition (trending or ranging) but not both. It seems this trading system is designed for ranging markets. While markets show both trending and ranging tendencies at various degrees, some markets tend to range more than they trend and other markets behave in the opposite manner. Therefore, traders must identify which markets have the ranging personality and apply this trading system on those markets. This can be easily done by scanning some charts on the MT4 and going back through the horizontal scale (or time).