The Predator 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:
- The Predator Expert Advisor For MT4
- The The Predator Expert Advisor For MT4 – Entry Criteria
- The The Predator Expert Advisor For MT4 – Exit Criteria
- The The Predator Expert Advisor For MT4 – Room for Improvement
The The Predator Expert Advisor For MT4 is a complex algorithmic trading system for MT4 platform. This robot is interesting not only because of its name but also because of its performance in the strategy tester. While the robot was not able to generate profits after a short test run, the trade results still look promising. The net loss is just a small percentage of the account balance, the maximal drawdown is less than one percent, profit factor is a little less than one, and the expected payoff is negative but negligible.
The testing result shows that the Predator is not ready to be used for live trading at the moment. Further testing must be done to determine the best settings that will generate profits for the trader. If possible, the trading system should be tested with optimization using different variables. Getting a result would take time as the tester would run different combinations of parameters. Once a positive result is obtained and the profit is significant, the setting will be used to perform another testing this time without optimization. This is to check if the optimization result is indeed correct. Only after this can the user consider running the robot in forward testing to see if the testing result can be replicated when live market data is used.
The The Predator Expert Advisor For MT4 – Entry Criteria
The Predator Expert Advisor for MT4 looks for trade entries at the beginning of a new candle. But before the trade hunting starts, the Predator checks if there is no open trade yet in the trading account for the current symbol. If there is none, it will look at the account free margin to see if the account has enough balance to take new trades. If the test is successful, the robot will look to the indicators for a trade signal.
In generating trade signals, the robot will check if three conditions are met. If any one condition is not true, no trade will be taken. These three conditions are the signals provided by the three technical indicators outlined below:
- Average directional movement index (period 14, price high) – Period 14 is standard for ADX, but the price high application is not typical. Still applying this setting results in an ADX that is quite the same as the standard version. In this system, the robot obtains the values of the ADX, +DI and -DI for the previous candle of the current timeframe. For a buy trade, the ADX should be greater than 20 and plus DI should be less than minus DI for the previous candle. For a sell trade, the ADX should be greater than 20 and plus DI should be less than minus DI for the current candle. The above logical conditions for ADX are the same, but they are used to give both buy and sell signals. This might not be the original purpose of the creator, but this is exactly how it appears in the code.
- Moving averages (period 1 and 5, price typical, linear weighted) – The two moving averages are being used by the robot to determine the trend direction, and they are applied on the current candle on the next lower timeframe. If the current timeframe is 15 minutes, for example, the moving averages will be applied to the 5-minute chart. If the fast LWMA is above the slow LWMA, this will give a bullish signal. If the fast LWMA is below the slow LWMA, this is taken as a bearish signal.
- Momentum (period 14) – This indicator is applied to the next higher timeframe, and the values needed for calculation are for the previous three candles. If any of the three values is less than 0.3, this is taken as one factor into the trade entry equation. This momentum value suggests that the current trend irrespective of direction is not exhausted yet and that it has enough steam to continue moving forward instead of turning around.
Once the three indicators generate a signal, a buy or a sell trade will be taken by the robot with a lot size of 0.01 (default value). As indicated in Inputs, by default each trade will have a stop loss of 200 pips and a take profit of 200 pips. However, during trade execution, the robot takes the spread on the current symbol into consideration. What it does is it adds the current spread to the stop loss price and subtracts the spread to the take profit price. Therefore, the trade risk is increased by the amount of the spread, and the trade reward is reduced by the same amount.
The The Predator Expert Advisor For MT4 – Exit Criteria
Apart from the stop loss and take profit orders, the trades taken by the Predator Expert Advisor for MT4 can be closed in other ways. Trade exit is also handled using the breakeven, trailing stop and a special stop function. With these other functions, it is possible that trades will not hit the stop loss or take profit.
The special stop function is run on every new candle to determine if the trade can be closed. If the current trade is a buy trade, the robot will check if there is a sell signal. If this is the case, the buy trade will be closed right away. On the other hand, if the current trade is a sell, the robot will check if there is a buy signal, and if so, closes the sell trade immediately. The trigger for trade closure will come from the Bollinger bands. How this indicator is used to provide a signal is explained below:
- Bollinger bands (period 20, deviation 2) – This is the setting for the standard Bollinger bands in MT4. The robot will only get the value of the lower band for the previous candle on the current timeframe, then it compares this value with the close price of the previous candle. If the previous candle’s close is less than the lower band, this will trigger a trade exit of the current open trade.
When a trade has become profitable and has gained at least 10 pips, its stop loss will be adjusted to the entry price. After a while if the trade gains 30 more pips, trailing stop comes in. From this point onward as long as price moves in the direction of the trade, the robot will maintain a distance of 40 pips between market price and stop loss price. Because of the user-defined stop function, the breakeven and trailing stop functions are not often used, but they are activated from time to time. Meanwhile, the stop function remains active even if trailing stop is working.
The The Predator Expert Advisor For MT4 – Room for Improvement
The Predator Expert Advisor for MT4 is a promising expert advisor. The reason for this is the manageable loss encountered in testing and the interesting statistics obtained. One good aspect of this trading system is the trade management being used. While the robot is called a predator, it does not look hungry when taking trades. It opens one trade at a time and manages the trade to the end. This strategy keeps trade losses and drawdowns at bay.
However, code review is necessary to check important conditions when opening and closing trades. It appears the ADX can give both buy and sell signals with the same criteria. Also, the condition for trade closure using the Bollinger bands seems incorrect. Either a bullish or bearish signal is given if the previous candle closes below the lower band, which is counterintuitive for most traders. When these two conditions are corrected, the robot might show different results. This must be done first before someone attempts to run the robot in the strategy tester again or demo trading.