Tokyo Session 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:
- Tokyo Session Expert Advisor For MT4
- The Tokyo Session Expert Advisor For MT4 – Entry Criteria
- The Tokyo Session Expert Advisor For MT4 – Exit Criteria
- The Tokyo Session Expert Advisor For MT4 – Room for Improvement
The Tokyo Session Expert Advisor For MT4 uses an advanced algorithm to trade the foreign exchange market. It can be used to trade any symbol of the 28 major pairs using the MetaTrader4 platform. Most of the time this expert advisor has a running trade on the current symbol, but it does not execute many trades. The set of entry rules is strict, so it trades only when certain conditions exist, which does not occur very often.
As the name implies, it is intended for trading the Tokyo session. The actual trading schedule is defined in terms of broker time in Inputs. However, the expert advisor does not overstay the welcome. It does not trade throughout the Tokyo session. As designed, it trades in two hours only and then closes the trade thereafter, win or lose. Initial testing reveals that this trading system can make money for the trader.
The Tokyo Session Expert Advisor For MT4 – Entry Criteria
The Tokyo Session Expert Advisor conducts several calculations on every tick to check if the values of variables inputted by the user in expert settings are correct. However, it takes a trade only at the start of a new candle. As a complex expert advisor, there is an array of parameters that the user must look into, understand and use correctly to be able to control how the program works and achieve the desired outcome. Below are the most important variables and their default settings:
- TimeFrame = PERIOD_H1 – The default trading timeframe is hourly chart. If this value is not modified by the user, the robot will trade the hourly timeframe even if the user changes the timeframe of the active symbol.
- TypeOfSignals = Contrary_Trend – The value of this parameter instructs the expert advisor to take trades against the trend. If the user wants to trade with the trend, though, he can use the other value, which is According_Trend.
- MinDistanceOfLevel = 0 – This is the minimum distance between the low price or high price to define the price range where a trade entry is considered.
- MaxDistanceOfLevel = 46 – This the maximum distance between the low price or high price to define the price range where a trade entry is considered.
- CloseOrdersOnTime = true – If this is true, trades will be closed when closing time comes.
- TimeCheckLevels = 6 – This is the opening time for trades taken by this robot.
- TimeCloseOrders = 8 – This is the closing time for trades executed by this expert advisor.
- BrokerOffsetGMT = 3 – This offset value is added to the opening time and the closing time to get the actual trading schedule. The result is that the opening time becomes 9:00 server time and the closing time becomes 11:00 server time.
- UseTakeProfit = true – By default, this value is true, meaning trades will have specific take profit targets.
- TakeProfit = 10.0 – If take profit is allowed, the take profit for each trade is 10 pips.
- UseStopLoss = true – By default, this value is true, meaning trades will have stop loss limits.
- StopLoss = 26.0 – If stop loss is permitted, the stop loss of each trade is 26 pips.
- AutoLotSize = true – This value means that automatic lot sizing is used.
- RiskFactor = 25.0 – This factor affects the calculation of the lot size along with the account balance. The value of 25 here does not mean 25 percent of the account balance will be risked in a trade, though.
- ManualLotSize = 0.01 – If automatic lot sizing is disabled, each trade will have this lot size.
- MaxSpread = 2.5 – The robot will take trades if the spread of the active symbol at the time of entry is less than or equal to 2.5 pips. The user can adjust this value based on the traded symbol.
- MaxOrders = 0 – This value means that there is no limit to the number of trades that the robot will open. In reality, the robot takes one trade at a time.
- Slippage = 3 – This figure is in pips. It means that the user allows up to a slippage of three pips for executing a trade order. This information is sent by the expert advisor to the trade server when a trade request is sent. When price has moved beyond three pips from the requested price by the robot for any reason, the server or the terminal will reject the order. This can be one security net to avoid trading during volatile times such as news events.
- MagicNumber = 0 – The value of zero means the expert advisor will define and set the magic number for each trade. This information is very useful in trade management.
- CommentsOrders = “TokyoSessionEA” – This information is added to a trade and is also useful in managing trades and monitoring performance. It can be used alone or in tandem with the magic number.
The expert advisor does not employ a set of technical indicators when looking for trade opportunities. Instead, it defines a price range where price must close before a trade entry is considered. A buy entry is taken anytime the close price of the previous candle is within the range defined by a specific candle. To get this range, the low price of this candle is first determined and then 46 pips is deducted to get the lower boundary. On the other hand, a sell entry is taken if the close price of the previous candle falls within the range defined by the high price of a specific candle. The lower limit of this range is the high price itself, and the upper limit is 46 pips above the high price.
Once a trade signal has been generated, a trade position is taken (either buy or sell) with the lot size determined by the robot. Since the lot size is based on a risk factor and the account balance, it is normally higher than the minimum lot size of 0.01 lot. The lot size is directly proportional to the account balance, so it goes up and down as the account balance makes or loses money.
The Tokyo Session Expert Advisor For MT4 – Exit Criteria
As defined in Inputs, the Tokyo Session Expert Advisor sets the stop loss to 26 pips and the take profit to 10 pips, making the risk-reward ratio less profitable for the trader. Still, the robot managed to return profits in testing, which is remarkable. Trades are not always closed by the take profit or the stop loss. More often than not, trades are closed by the robot at the end of the trading schedule. This happens if the trades did not make it in time to the take profit target, or price did not hit their stop loss before the closing time.
The Tokyo Session Expert Advisor For MT4 – Room for Improvement
The Tokyo Session Expert Advisor was run for five months of test data in the strategy tester. During the testing period, the robot executed 39 trades only, and 67 percent of those trades (or 26 trades) were profitable. This is the main reason why the robot managed to produce profits even if the risk-reward ratio is not attractive. The high win rate makes up for this setback to be able to deliver results. This means that the entry rules are accurate, which is the case as observed in testing.
Although the drawdown was relatively high (at 13 percent), that is still acceptable for many algorithmic traders. The expert advisor made 11 percent profit during testing, resulting in a profit factor of 1.24. Any profit factor greater than one means the trading system makes money.