X Man Expert Advisor For MT4
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 X Man Expert Advisor For MT4 is a simple expert advisor for MT4 platform. It is intended to exploit market trends that occur about 25 percent of the time. This is done by using two technical indicators, namely moving average and momentum. While moving average shows market trend and direction, the momentum indicator measures the strength of market trends.
While the robot does not yield a positive result in the strategy tester, it shows promise and is a good candidate for further development. It uses an exit strategy that protects the trading account by closing losing trades at the first sign of trouble. Money management like this makes sense as it lives by the market truism accepted by most traders that cutting losses and letting profits run is the way to thrive in the financial markets.
The X Man Expert Advisor For MT4 – Entry Criteria
The X Man Expert Advisor for MT4 searches for trade entry once in every new candle. After a new candle has formed on the current chart timeframe, the robot inspects the account balance to see if it has enough free margin to take or add trades. Then the number of bars on the chart is counted to determine if it is more than 100 bars, and the take profit is checked if the user has set it to more than 10 pips. After completing these checks, the robot will explore the chart if the technical indicators give a trade signal.
The technical indicators used in this robot and their default settings are presented below:
- Linear weighted moving averages (period 6 and 85) – The LWMAs are used to determine the trade bias (buy or sell), and they are applied to the next lower timeframe, M30 in this example (see second image above). A bullish bias is indicated if the 6 LWMA is above the 85 LWMA and if the distance between the two lines is at least 25 pips (default). On the other hand, a bearish bias is given if the 6 LWMA is below the 85 LWMA and if the distance between them is more than 25 pips. The values being measured are applied on the current candle on the lower timeframe.
- Momentum (14) – The robot checks the momentum indicator for confirmation if the trade bias given by the LWMAs is valid. The momentum indicator is applied to the current timeframe, which is also the trade chart, H1 in this instance (see third image above). The robot checks if the market has enough momentum to move forward in the current trend direction. If the momentum value is less than 0.3 (default), this suggests that the trend has just begun and so is tradable. The momentum indicator does not specify the trade direction. It only gives an indication of market momentum or strength.
Once the two conditions above are satisfied, a market order is sent to the trade server. If these conditions occur at a later time, additional trades will be taken by the robot as long as the number of trades open in the current symbol is less than 10 (default).
The X Man Expert Advisor For MT4 – Exit Criteria
The X Man Expert Advisor for MT4 always executes market orders with stop loss and take profit. The default stop loss is 20 pips, and the default take profit is 50 pips. Open trades can be closed in different ways. When the trades hit the stop loss or take profit order, they are closed automatically. It is possible that trades are closed in prices other than the stop loss or take profit. This is because the breakeven and trailing stop functions are enabled by default.
When a trade has become profitable and gained at least 30 pips (default), its stop loss is moved to breakeven for a risk-free trade. After some time when the trade gains 10 more pips, the trailing stop function is activated. Thereafter, every time the trade gains points or pips, its stop loss is adjusted further in the direction of the trade. In this scenario, only two possible things will happen. The market hits either the adjusted stop loss or the take profit target. In both cases, the trade result is positive for the trading account.
Once trailing stop is triggered, the robot will check once on every new candle the distance between the current market price and the stop loss price. If this distance is more than 40 pips, the stop loss will be adjusted continuously. The trade will need to run for 10 more pips before it reaches the take profit target of 50 pips from the open price.
The X Man Expert Advisor For MT4 – Rooms for Improvement
The X Man Expert Advisor for MT4 is not yet profitable in the strategy tester in its default settings. The equity curve is volatile but the overall direction is down. Further development is necessary to improve its performance. One area to look into is the number of trades open at a point in time. Ten open trades at once might hurt the trading account badly if those trades turn sour. Here the user can manually adjust the number of trades lower.
One obvious flaw in this robot as shown in the strategy tester is the proximate distance between trades. More often five trades of the same type (e.g. buy) are bunched together in a small area with a range of five pips. Spreading the trades apart would significantly lower the frequency of liquidating losing trades.
Further, the take profit target of 50 pips might be too narrow as the trailing stop distance of 40 pips is very close. Increasing the take profit target would give the trading system more chances of making huge profits to cover any losses that the account might have suffered in the past.
One minor adjustment that would make a huge impact on trading performance is running the breakeven and trailing stop functions by tick rather than by candle. Trade management per candle might prove too slow for an algorithmic trading system. Also, some unused variables must be removed, as well as unnecessary statements.
Due to the requirement that the distance between the two LWMAs should be at least 25 pips on the lower timeframe, this robot should be traded only on the higher timeframes, starting from the M30 chart. Otherwise, the user might not frequently see trades opened in the trading account. Setting this distance lower or instructing the user to use longer-term timeframes might solve this issue.