Tipu 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:
- Tipu Expert Advisor For MT4
- The Tipu Expert Advisor For MT4 – Entry Criteria
- The Tipu Expert Advisor For MT4 – Exit Criteria
- The Tipu Expert Advisor For MT4 – Room for Improvement
The Tipu Expert Advisor For MT4 is a sophisticated trading system that uses two custom indicators to enter and exit the market. These custom indicators come with the robot and must be put in the correct folder under the MT4 directory so that the robot can see and extract data from them. Otherwise, the robot would not run at all. As shown in the above picture, the custom indicators are called Tipu Trend and Tipu Stops. The Tipu Trend is the indicator that looks like a moving average.
The logic behind this trading system is interesting, particularly when one observes the trades taken by the robot in the strategy tester. Adding a new trade when the previous trade has been secured is definitely a good idea. The only problem noted in testing was the array-out-of-range error at a later stage in the testing period. As a result, the robot failed to generate profits for the trading account. To determine the effectiveness of this expert advisor, the said error should be sorted out first before someone attempts another testing.
The Tipu Expert Advisor For MT4 – Entry Criteria
The Tipu Expert Advisor executes the trading algorithm on every tick, so it can possibly open a trade while a candle is being formed on the current timeframe. Before looking for trade entries, the robot performs initial checks first. The number of bars on the chart is inspected if it is more than 100, the take profit set by the user in Inputs is examined if it is more than 10 pips, and the free margin is checked if there is enough money to open new trades.
The user is given some options on how to run the expert advisor in testing, demo or live trading. All the available options are listed below, along with the default values and some explanation:
- bHedge = false – With this setting, hedging is disabled by default.
- bRevSignal = true – Open trades will be closed if an opposite signal is received.
- bTP = true – This parameter instructs the robot to set a take profit on each trade.
- dTP = 20 – The take profit on each trade is set at 20 pips.
- dRisk = 50 – The stop loss on each trade is set at 50 pips.
- dlots = 0.01 – Each trade has a lot size of 0.01.
- bRF = true – With this setting, the robot will add a trade if the previous trade is profitable.
- dRFpips = 10 – When the previous trade is winning, its stop loss is moved 10 pips beyond the entry price to secure profits and then the risk-free trade is added.
- dIncLots = 0.01 – The risk-free trade is opened at a lot size of 0.01.
- dMaxLots = 0.03 – The maximum lot size allowed is 0.03.
- bTrailSL = true – Stop trailing is enabled by default.
- dTrailSL = 10 – Stop trailing is activated when a trade has gained 10 pips.
- iMagic = 420 – The robot gives this magic number to each trade for use in trade management.
The expert advisor employs two custom indicators that come with the package to be able to generate signals for entry. These two custom indicators must be put under the Markets folder within the main Indicators folder so that the robot works and can extract their values. How the indicators are used to generate a signal is explained below:
- Tipu trend (custom indicator) – The Tipu Trend looks like a moving average on the main chart, but it is more sensitive to price movement than an ordinary simple moving average. In addition, the line changes color to depict the trend (aqua for bullish, dark orange for bearish, and silver for neutral trend). If the current and previous candles are in aqua, a buy signal is generated. If the current and previous candles are in dark orange, a sell signal is given. If silver, there is no signal.
- Tipu stops (custom indicator) – This indicator is used to confirm the signal given by the Tipu Trend. To qualify a buy signal, the distance between the upper line and the ask price should be less than 50 pips. To qualify a sell signal, the distance between the lower line and the bid price should be less than 50 pips.
If a trade signal has been found and confirmed, the expert advisor will initiate a trade entry with a lot size of 0.01. Each trade taken by the robot has a defined stop loss of 50 pips and an explicit take profit of 20 pips. The trade can be taken at any point in time. If a trade is winning, additional trades may be added by the robot.
The Tipu Expert Advisor For MT4 – Exit Criteria
By default, the Tipu Expert Advisor will add another trade in the direction of the previous trade if the former trade is winning. This is called risk-free trade in this expert advisor’s parlance. But before the trade is added, the previous trade is secured first. This is done by adjusting the stop loss 10 pips beyond the entry price. For a buy trade, this means the stop loss is moved 10 pips above the entry price.
Once the previous trade has been safeguarded, the risk-free trade is added right away, almost without delay. Meanwhile, the stop loss of the new trade is put at the same price as the stop loss of the previous trade. This way, if price turns around and hit the common stop loss, both trades will be closed at the same time at breakeven. On the other hand, if the second trade also becomes profitable, another trade can be added in a similar fashion.
The expert advisor may also directly close open trades using the same signal utilized in opening the trades. For example, if the current trade is a buy trade and a sell signal has been received, the trade will be closed either in loss or in profit. Normally, trades closed in this manner end in loss. Open sell trades are also directly closed by the robot in the same fashion.
The Tipu Expert Advisor For MT4 – Room for Improvement
The Tipu Expert Advisor is not easy to run in MetaTrader4 since the two custom indicators were not readily available. The user must first download the two indicators in MQL5.com before the robot can be used. Downloading the indicators itself can be challenging if one is not familiar with the intricacies of using the MT4 platform. The indicators can be downloaded straight from the MT4 terminal. This is done by going to the terminal window, clicking on the Markets tab, signing in on MQL5.com, searching for the indicators, and finally clicking the Download button. Once done, the user needs to wait for a while until the files are downloaded and installed in MT4. Once the process is complete, the user can see the executable files in the Markets folder under the Indicators folder.
The above challenge has been resolved somehow since the two files are already included in the expert advisor package. At some point, if the user finds that this expert advisor can generate money, he would have to purchase the two custom indicators from the MQL5.com website. Otherwise, the files may expire and become unusable. There is a possibility that the attached files will not work when copied to another computer due to the protection put in place by MQL5.com to files provided for sale. If this happens, the user can always get the files following the process outlined in the previous paragraph.