RoNz Auto SL TS TP v206 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 RoNz Auto SL TS TP v206 Expert Advisor is a smart mechanical trading system for MetaTrader4 trading platform. It uses a simple approach to trade entry but employs advanced trade management techniques to generate profits. The user can implement this trading system in trading accounts from both four and five-digit brokers, any foreign exchange currency pair and any timeframe.
Running the robot in back testing ended in negative profit, but the trading metrics look interesting. The win rate was high (around 65 percent), drawdown was low (0.75 percent), and the lost amount was minimal. In addition, the robot averaged 55 trades per month using five months of historical market data for one symbol in 15-minute timeframe. These metrics show that while the robot is currently not profitable, it has some potential to become profitable given the right conditions.
The RoNz Auto SL TS TP v206 Expert Advisor For MT4 – Entry Criteria
The RoNz Auto SL TS TP v206 Expert Advisor for MT4 executes minimal routine checks before looking for trade entries. It inspects the current chart to see if it has more than 100 candles, if automated trading is allowed in the client terminal, if there is no open trade on the current symbol and if a new candle has formed. If any one of these conditions is not true, the robot stops its operation and runs again on the next candle.
There are important parameters in Inputs that the user must set properly so that the trading system performs as the user wants it to. These parameters include the following:
- TakeProfit=500 – This value is in points, not pips. If a trade gains 500 points, it will be closed in profit. The user can adjust this value as he sees fit.
- StopLoss=250 – This value is in points. If a trade loses 250 points, it will be closed in loss.
- SLnTPMode=Client – The user can choose either Client or Server. The default value is Client. When this is selected, the stop loss and take profit will not be shown on the chart, meaning these stop orders are not put in place. When Server is chosen, each trade will have a defined stop loss and take profit.
- LockProfitEnable=LP_ENABLE – This parameter switches the trailing stop function on and off. By default, it is enabled. As such, stop loss of winning trades will be trailed behind market price.
- LockProfitAfter=100 – This value is in points. This parameter will take effect if the LockProfitenable is set to its default value.
- ProfitLock=60 – This value is in points. It works in tandem with the LockProfitAfter parameter. Using the default settings, if a trade gains 100 points, its stop loss will be moved 60 points beyond entry price. This way the trade cannot lose money anymore. Instead, 60 points of profit will be secured.
The expert advisor executes a trade at the start of a new candle. When a trade is executed, it will have a stop loss and take profit if the SLnTPMode parameter is set to Server. Otherwise, a trade will have no stop loss and take profit stop orders. All trades will have the minimum trade volume as prescribed by the broker for the trading account, and there is no other way around this as it is not available as an option in Inputs.
The trading system uses only one type of technical indicator to determine the trade direction and to time the entry. The indicator being used, its settings and signal generated are outlined below:
- Moving averages (period 10, 20 and 100; exponential mode; price close) – The moving averages are applied to the current timeframe and candle. If 10 EMA is below 20 EMA and 10 EMA is above 100 EMA, a buy signal is generated. If 10 EMA is above 20 EMA and 10 EMA is below 100 EMA, a sell signal is indicated. This signal is the only basis for determining the trade bias and the time of entry.
The RoNz Auto SL TS TP v206 Expert Advisor For MT4 – Exit Criteria
The RoNz Auto SL TS TP v206 Expert Advisor for MT4 uses two methods in trade management, and only one method can be used at any one time. The first method involves using hidden stop loss and take profit, which is the default strategy. In this case, the user (as well as the broker) cannot see the stop loss and take profit prices on the chart, but the robot stores them in memory. An open trade will be closed forcibly by the robot if either the virtual stop loss or take profit price is breached.
If a trade loses 25 pips, the robot will close the trade for a loss. If the trade instead wins 50 pips, it will be closed for a win. If a trade is winning, even before it hits the take profit objective, the robot might have already adjusted its stop loss to a distance of six pips above or below the entry price. This happens the moment the trade gains at least 10 pips. This way it cannot turn around and ends up a loser. The stop loss is not adjusted thereafter. Either price hits the adjusted stop loss or the take profit target, and the trade is adjudged victorious either way.
In the second method, the robot includes the stop loss and take profit orders of a trade when a request is sent to the trade server. When the trade request was successful, the trade will be managed by the robot in the same way as it handles a trade with the first trade management method.
The RoNz Auto SL TS TP v206 Expert Advisor For MT4 – Room for Improvement
The RoNz Auto SL TS TP v206 Expert Advisor for MT4 is a simple algo trading system that shows promise. Testing did not result in profit, but the robot might pull off a different performance at another time in another situation. Therefore, further testing in the strategy tester preferably using different symbols and combination of settings might be needed to bring out the best of this expert advisor.
One area that can be improved is the entry strategy. Trades executed by the robot might have been taken prematurely. First, the robot uses the current open candle to decide if the moving averages are aligned correctly. It is possible that the relationship of the moving averages could end up differently when the current candle closes, resulting in false signal. The problem is that the trade was already executed, and there is no turning back.
In addition, it is better to use candles that close in a certain way. For a buy signal, the signal candle (already closed or still open) must be bullish, meaning it opens low and closes high. For a sell signal, the signal candle must be bearish, meaning it opens high and closes low. Individual or groups of candles often show the market sentiment of the underlying security.
To determine the profitability of the trading system, the user can look into the relationship of the stop loss and take profit. While it seems like the risk-reward ratio is favorable for the trader (25 pips risk versus 50 pips reward), the lock-in function might adversely affect this relationship even if the robot seems to have a high win rate. If the robot wins more trades but gains little profit and loses fewer trades but loses more money, the end result is not going to be good for the trading account.