Support Resistance Trader 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:
- Support Resistance Trader Expert Advisor For MT4
- The Support Resistance Trader Expert Advisor For MT4 – Entry Criteria
- The Support Resistance Trader Expert Advisor For MT4 – Exit Criteria
- The Support Resistance Trader Expert Advisor For MT4 – Room for Improvement
The Support Resistance Trader Expert Advisor For MT4 is a simple automated trading system for MetaTrader4. It can be used to trade any foreign exchange instrument and can be applied to any timeframe, but it is specifically designed for use in EURUSD hourly period. Whether a trader uses a trading account from a four-decimal or five-decimal broker, the robot will work without any issues.
Testing the expert advisor over five months of historical price data does not lead to definitive results. Most metrics look good, but the outcome in terms of profit is slightly to the negative side. This means that the robot is not yet suitable for use in live trading. More back testing is needed to find out whether the robot can generate profits or break a trading account. Forward testing in a demo account can be employed, but it will take time before someone can get sufficient amount of data for evaluation purposes.
The Support Resistance Trader Expert Advisor For MT4 – Entry Criteria
The Support Resistance Trader Expert Advisor for MetaTrader4 looks for trade entries when a new candle has formed. At the start of a new candle, the robot will loop through the orders in the trade pool to count the number of trades in the current symbol. If there is none, it will refer to the technical indicators to get a signal for trade entry.
When the expert advisor opens a new trade, the stop loss and take profit are also put in place. The default take profit is 200 pips, and the default stop loss is 125 pips, keeping the risk-reward ratio greater than one in favor of reward. When a trade has been opened, the robot will stop looking for new trades. Instead, it looks to the technical indicators for a signal to close the trade.
There are important parameters that the user must understand and set correctly so that the expert advisor behaves as he had intended. These parameters are outlined below:
- CloseTrade=true – This parameter can be true or false. Default value is true. If true, a trade will be closed if an opposite signal is generated. If false, the trade will remain open until it hits the stop loss or take profit or if forcibly closed by the robot.
- ProfitTypeClTrd=1 – This parameter can be 0, 1 or 2. If one, only profitable trades will be closed by the robot when a new signal comes in. If zero, all trades (profitable or not) will be closed, but if the value is two, only a negative trade will be closed.
- entryhour = 5 – This parameter can range in value from 0 to 23, which is equivalent to the number of hours in a day. It marks the start of trading for the expert advisor.
- openhours = 20 – This parameter sets the duration of trading from the entry hour. The entry hour should be referred to when setting this parameter.
- Lots = 0.01 – This is the fixed lot size of all trades.
- TakeProfit = 200 – Take profit value in pips
- StopLoss = 125 – Stop loss value in pips
- TrailingStop = 55 – Number of pips gained when trailing stop function comes into play
The expert advisor makes use of multiple technical indicators to generate signals both for trade entry and trade exit. The same set of indicators will be used in opening and closing trades. The settings used and the signals generated are discussed below:
- Average directional movement index (period 10, price close) – This is not the typical setting for ADX. In this trading system, only the value of the main line is used. The ADX value should be greater than 24 to be taken as a valid signal.
- Standard deviation (period 30, price high) – This setting is not standard for standard deviation. The indicator is applied to the previous candle on the current timeframe. If the deviation value for the previous candle is less than 1.38 and the deviation line was sloping upward for the last two candles, that is considered as a buy signal. If the deviation is less than 1.38 and the deviation line was sloping upward for the last two candles, that is taken as a sell signal. While the rule for buy and sell signals appears to be the same, that is how it is written in the code.
- Bollinger bands (period 20, deviation 2) – This is the standard setting for the Bollinger bands. The robot is interested to know the gap between the upper and lower bands for the previous candle of the current timeframe. If the distance between the bands is greater than 25 and lower than 70, the Bollinger bands signal is validated.
- Moving averages (period 7, simple mode, price high and low) – Two simple moving averages (one applied to the high and another applied to the low) are being used to give another signal. On the chart, the two SMAs look like a channel that contains price movement. The moving average values are computed for the previous candle. If 7 SMA high is above the resistance value, that is taken as a buy signal. On the other hand, if 7 SMA low is below the support value, a sell signal is given. The resistance value is the highest high of the last 90 candles, while the support value is the lowest low of the last 90 candles.
All of the technical indicators above must agree so that a definite signal for buy or sell is generated. These same indicators will be used to close the open trades if they give another signal in the opposite direction. Signals for entry and exit are produced at the beginning of a new bar.
The Support Resistance Trader Expert Advisor For MT4 – Exit Criteria
The Support Resistance Trader Expert Advisor for MT4 employs three complementary methods in trade management. The first method is a passive approach, that is, allowing the trade to be closed by the stop loss or take profit. The second method is an active approach, but it applies to winning trades only. If a trade gains at least 55 pips, its stop loss will be moved to breakeven first and then trailed continuously thereafter so long as the market moves in the trade’s favor.
The third method used for trade exit is the technical indicators. For instance, if a buy trade is running and the indicators give a sell signal at the start of a new candle, the trade will be forcibly closed and immediately replaced with a sell trade. The next trade is always in the opposite direction of the previous trade when opened in this manner. In view of the previously set parameter for trade exit, losing trades will not be closed by the robot even if the indicators provide the signal. With this setup, a trade will be closed only when profitable or if price hits the stop loss.
The Support Resistance Trader Expert Advisor For MT4 – Room for Improvement
The Support Resistance Trader Expert Advisor for MT4 is an interesting trading system due to its fascinating results in the strategy tester. The robot was run in back testing using five months of historical data but suffered only a minimal loss. The win rate was remarkable (around 78 percent), and the maximal drawdown was less than one percent. This testing shows that the robot has potential to become profitable perhaps when the conditions are right. Therefore, it is a good idea to try testing the robot in another symbol or timeframe using different combinations of parameters. This can be done in the strategy tester preferably with optimization or in a demo account.