The SmartAssTrade V2 Forex 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!
The The SmartAssTrade V2 Forex Expert Advisor For MT4 uses a set of technical indicators that seems to complement each other well to define an optimal trade entry. Since the trading system is expected to open high-probability trade entries, trade management is designed in such a way as to allow frequent small gains and limit the occurrence of large losses. However, a stop loss is put in place to avoid a disaster in case the robot makes the wrong call.
As expected, the trading system had a high win rate of 61 percent when tested using five months of test data in one currency pair. Despite this remarkable win rate, the overall result was not impressive. It appears the high win rate was not enough to yield a positive return. While testing started out well in terms of profit, the equity curve slowly drifted to the downside toward the breakeven point and beyond. It seems the trading environment during testing has changed and led to the negative end result.
The SmartAssTrade Expert Advisor for MT4 – Entry Criteria
The SmartAssTrade Expert Advisor for MT4 is designed to be used on the 30-minute timeframe of any major currency pair. Prior to looking for trade entries, the robot checks if automated trading is enabled and if the current day, hour and minute are tradable. If so, the robot refers to the technical indicators for an entry signal.
At the outset, the user is given plenty of options to work with to influence how the robot works. Out of the available parameters provided in Inputs, the following list is extracted and explained to serve as a starting point in learning how to use the robot.
- FridayTrade = True – This parameter means that trading during Friday is allowed.
- LotsOptimization = True – This setting means that the lot size is dynamic and varies by the prevailing account equity.
- Lots = 0.01 – If dynamic lot sizing is disabled (i.e., LotsOptimization = false), the user can set any static lot size to be used in the entire trading, though it can be changed at any time.
- MaxOpenOrder = 12 – This variable does not refer to the maximum open trades in the current symbol, but to the maximum number of currency pairs that the robot will trade.
- AutomaticTakeProfit = True – With this variable set to true, the take profit target is set during entry.
- TakeProfit = 35 – This is the take profit of trades in pips and is set at the time of entry.
- AutomaticStopLoss = True – With this variable set to true, the stop loss limit is set during entry.
- StopLoss = 62 – This is the stop loss of trades in pips and is set at the time of entry.
- UseTrailingStop = False – The default setting is that stop trailing is disabled.
- TrailingStop = 30.0 – If the user enables stop trailing, this function kicks in when a trade has gained 30 pips.
- TrailingStopStep = 1.0 – When stop trailing has started, the stop loss of the trade is adjusted every time a pip is gained.
The trading system makes use of four technical indicators built in MT4 to determine if a trading setup exists or not. How the buy or sell signal is generated is covered in the following section:
- Oscillator of a Moving Average (12, 26, 9) – The expert advisor determines the values of the OsMA indicator for the current and previous candles for the current symbol and five timeframes (i.e., 1 minute, 5 minutes, 15 minutes, 30 minutes and 1 hour). When the OsMA of the current candle is greater than that of the previous candle, a buy count is made. When the OsMA of the current candle is less than that of the previous candle, a sell count is made. When the total buy count is greater than or equal to 4, it is taken as a buy signal. When the total sell count is equal to or greater than 4, it is taken as a sell signal.
- Simple moving average (period 20, price close) – The robot computes the values of the simple moving average for the current and previous bars for the current symbol and five periods (i.e., 1 minute, 5 minutes, 15 minutes, 30 minutes and 1 hour). When the SMA of the current bar is greater than that of the previous bar, a buy count is made. When the SMA of the current bar is less than that of the previous bar, a sell count is made. When the total buy count is greater than or equal to four, it is taken as a buy signal, and when the total sell count is greater than or equal to four, it is taken as a sell signal.
- William’s percent range (period 26) – The values of the WPR for the current symbol, 30-minute chart, and current and previous bars are computed. A buy signal is generated when the current WPR is less than 90 and current WPR is greater than previous WPR. A sell signal is obtained when the current WPR is greater than 10 and current WPR is less than previous WPR.
- Relative strength index (period 14, price close) – The values of the RSI for the current pair, 30-minute period, and current and previous candles are calculated. A buy signal is derived when the current RSI is less than 77 and current RSI is greater than previous RSI. A sell signal is provided when the current RSI is greater than 23 and current RSI is less than previous RSI.
Certain conditions must be satisfied before the robot executes a trade. The robot will not look for a trade when the market has just opened in a trading day (i.e., hour is zero) and is open for less than 30 minutes. If the trading time is correct and a trade signal has been generated and confirmed, the robot will open a trade with a lot size proportional to the account equity.
Since automatic lot sizing is enabled by default, the lot size depends on the account equity. If the equity is equal to or less than $1,000, the robot would use the minimum lot size (i.e., 0.01). If the equity is greater than $1,000, the equity is divided into 100 positions and the lot size is greater than the minimum lot size. Upon trade entry, the robot sets a stop loss of 62 pips and take profit of 35 pips to the trade. However, the robot factors the current spread into the take profit price. Therefore, the actual take profit is a spread less than 35 pips.
The SmartAssTrade Expert Advisor for MT4 – Exit Criteria
The SmartAssTrade Expert Advisor for MT4 opens one trade at a time. Although stop trailing function is available in the code, this function is disabled by default. If the user wants, he can explore through demo trading how trailing stop will affect the performance of the trading system.
The SmartAssTrade Expert Advisor for MT4 – Room for Improvement
The SmartAssTrade Expert Advisor for MT4 was not able to generate profits during the test run. This is because the win rate was not high enough to offset the few large losses that came from time to time. As observed in testing, the robot shines in trending markets and flounders in ranging markets. Therefore, the trading system can be categorized as a trend-trading strategy and should be used that way.
To improve the performance of the expert advisor, the reward-risk ratio should be reconsidered. In the default setting, the stop loss is bigger by a multiple of two than the take profit. An entirely different result might come about if the relationship of stop loss and take profit is turned the other way around. The only way to find this out is through demo trading primarily with optimization.