Renko Fractals Grid 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 Renko Fractals Grid Expert Advisor For MT4 is an interesting expert advisor developed for use in MT4 trading platform. It draws upon the concept of renko chart but implements it differently in this trading system. This robot gives users just enough options to work on prior to deployment, but it performs various routine checks in the background before taking trades.
At present, the robot shows erratic results in the strategy tester. The equity curve is generally going to the downside, but recoveries are seen on several occasions. This trading system could use further improvement to refine its trading performance and make it a viable option for algorithmic traders.
The Renko Fractals Grid Expert Advisor For MT4 – Entry Criteria
The Renko Fractals Grid Expert Advisor for MT4 looks for trade entry once in every new candle. Before taking trades, routine checks are performed. If the current drawdown on the trading account is greater than one percent (default value) of the account balance, all trades on the current symbol will be closed immediately. Then the robot will check if there are more than 100 bars on the chart and if the take profit set by the user is more than 10 pips. Thereafter, indicators will be inspected if they contain signals for buy and sell trades.
If the number of open trades on the trading account is less than 10, the robot will keep looking for new trades. If there is an up or down fractal in the last three candles, that is taken as one signal. Then the robot will check if the high of any of the previous 10 candles is equal to or greater than two pips from the current ask price. If so, this is another sell signal. The robot starts checking from the 10th candle and moves to the right. It does not need to check all 10 candles though. It will immediately get out of the loop once a single candle gives a signal. This is how the concept of renko is being used in this trading system. The robot does not convert the active chart, candlestick or another, into a renko chart.
The indicators used by the robot and their settings are presented below:
- Fractals – This is one of the renowned indicators developed by Bills Williams built in MT4 platform. Familiar to many users, the indicator has no parameters to be set in the Inputs tab. Once it is dropped on the chart, it will show up and down arrows. The up arrow will show up if the middle candle in a group of five has the lowest low and the other two candles in the left and the right have higher lows. The down arrow is printed if the middle candle in a group of five has the highest high value and the other two candles in the left and the right have lower highs. The robot checks the current chart if such an arrow exists starting from the last 250 bars. If the recent arrow is up, that is a buy signal, while if the recent arrow is down, it is taken as a sell signal.
- Linear weighted moving averages (period 6 and 85) – These moving averages are applied on the next lower timeframe from the current timeframe to which the robot is attached. In the image above, the current chart is 15 minutes; therefore, the two LWMAs are applied on the five-minute chart and so are not shown. The moving averages use the typical price, and the robot checks their values on the current open candle. If the fast-moving average (6 LWMA) is above the slow-moving average (85 LWMA), that is a buy signal and the opposite is true for short.
- Momentum (14) – This is the setting for the standard momentum indicator. In this trading system, the momentum value being measured is taken on the next higher timeframe with respect to the current chart. In the sample image above, the robot is applied to M15, so the value used in calculating the momentum is obtained from the 30-minute chart. The value so derived is not used to indicate trend direction, only for measuring recent market strength. If the momentum value is less than 0.3, this suggests that there is still enough momentum to push the market in the prevailing trend direction. Any of the previous three candles is used for checking the momentum value.
If the three indicators above are in agreement, a market trade will be taken. Additional trades will be placed on the next candles so long as the entry criteria are met and the allowed maximum number of trades in the current symbol is not reached.
The Renko Fractals Grid Expert Advisor For MT4 – Exit Criteria
The Renko Fractals Grid Expert Advisor for MT4 always equips all open trades with stop loss and take profit. The default stop loss is 20 pips, and the default take profit is 50 pips. If price hits the stop loss, the trade is closed by the terminal for a loss. If the trade becomes profitable and gains at least 30 pips, the breakeven feature comes in. In this instance the robot immediately adjusts the stop loss to the entry price for a risk-free trade. After running for some time and the trade gains 10 more pips for a total of 40 pips from entry, trailing stop is triggered. From this point onward, as the trade gains pips or even points, the robot will maintain a distance of 40 pips (TrailingStop value) between market price and the stop loss price until price hits either the adjusted stop loss or take profit at 50 pips. Either way, the trade exits on a positive note.
The Renko Fractals Grid Expert Advisor For MT4 – Rooms for Improvement
The design and logic behind the Renko Fractals Grid Expert Advisor for MT4 is carefully laid out. Using this robot would not unnecessarily overwhelm the user with complicated or cumbersome options to tweak at the outset. The robot performs the hard work in the background. However, the back-testing result is currently not positive, but the robot shows promise. One area to improve on is the spacing of open trades. In the strategy tester, trades are executed very close to each other, leading to frequent liquidation. This should be one item that the robot checks at the start of every candle prior to looking for trade entry.