X Trader v3 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 Trader v3 Expert Advisor For MT4 is a simple algorithmic trading system for MT4 platform. The robot might have gotten its name from the method being used in generating trade signals, that is, moving averages. This expert advisor is basically a moving average crossover system. Whenever a crossover of the moving averages occurs, a trade will be taken if other trade entry requirements are confirmed.
This trading system is specifically designed for trading accounts whose exchange rates are given in five digits for dollar pairs and in three decimals for yen pairs. To use it in four-digit and two-digit trading instruments, the user must manually adjust the values of the stop loss and take profit in Inputs. Otherwise, errors might be returned as the robot attempts to open and modify trades, or worse the user might lose money.
The X Trader v3 Expert Advisor For MT4 – Entry Criteria
The X Trader v3 Expert Advisor for MT4 uses a trading algorithm that consumes a minimal amount of computer resources. It does not perform involved mathematical computations to obtain data, nor it displays objects on the chart for use in trade entry generation. The program code is straightforward and focuses on trade entry and exit.
When looking for trade entry, the expert advisor checks if five conditions are met. If any one condition is not true, the robot will not take a trade. Two of the five requirements are logical conditions that must be true, and three are related to the trade signal given by the technical indicator, trading schedule and number of open trades.
First, the robot will check if there is a signal for a trade and if there is no opposite signal for trade closure. Both signals for entry and exit are given by the moving averages. Also, the X trader will inspect if the parameters for entering trades indicated in Inputs (i.e., AllowBuy and AllowSell) are set to true. Otherwise, no trade will be executed. Both parameters are enabled by default, though.
Next, the expert advisor will check if there is an open trade of a specific type in the current symbol. If there is none, checking continues. Then the current server time is evaluated if it is within the desired trading schedule set in Inputs. Otherwise, a trade opportunity will be passed. By default, trading time is anytime within the day and any day of the week. However, the user is free to choose the trading schedule as he desires. This way it is possible to run the robot in specific market times or sessions.
Once the four conditions above are satisfied, the robot is ready to look for a trade entry. This is done using the moving averages. Their settings and specific criteria for generating a trade signal are discussed below:
- Moving average (period 1, shift 0, method simple, price median)
- Moving average (period 16, shift 8, method simple, price median)
The above settings for the moving average are not standard. As a result, the moving averages look completely different from their standard counterparts. In this trading system, the crossover of the two moving averages in the current timeframe is used as a buy or sell trade signal. The crossover must have occurred recently for the signal to be valid. The robot will determine if this is the case by getting moving average values for three candles starting from the current to the previous two candles.
For a buy signal, the fast-moving average (1) must have crossed above the slow-moving average (16) in the previous two candles and must be above the slow-moving average on the current candle. On the other hand, for a sell signal, the fast SMA must have crossed below the slow SMA in the previous two candles and must be below the slow SMA on the current candle. Once this last criterion is satisfied, the robot will take a trade.
If a buy trade has been taken, the expert advisor will stop looking for another buy trade. Instead, it will look for a sell trade. Therefore, it is possible to have two open orders (buy and sell) on the current symbol at any one time. Each trade taken will have a lot size of 0.10 as defined in Inputs and will not have any stop loss and take profit stop orders at the time of trade execution. The robot does not wait for a new candle to form before executing a trade. It enters a trade at any time when opportunity presents itself.
The X Trader v3 Expert Advisor For MT4 – Exit Criteria
If there is an open trade on the current symbol, the X Trader v3 Expert Advisor for MT4 will check on every tick the values of moving averages to see if an opposite signal has been generated. If that is the case, it will close the current trade win or loss. This is because the parameter for closing trades on reverse signal is enabled by default. If the current order is a sell trade and a bullish signal is given by the indicators, the sell trade will be exited immediately, and the robot will look for another trade opportunity. The opposite is true for an open buy trade.
If there is no signal for trade closure and there is an open trade, the expert advisor will adjust the stop loss and take profit of the trade. The stop loss price is set 100 pips from the trade entry price, while the take profit is set 150 pips from the trade open price. This 1.5 risk-reward ratio tips the scale a little in favor of reward.
The X Trader v3 Expert Advisor For MT4 – Room for Improvement
The result of running the X Trader v3 Expert Advisor for MT4 in the strategy tester with the default settings is currently unsatisfactory. The equity curve was going down with almost no periods of recovery, and the account ended in negative profit. Drawdown is high (around ten percent), and the win rate is less than 25 percent. Profit factor is less than one, and expected payoff is negative.
The above testing result shows that the robot is not suitable yet for live trading. Several improvements must be done to turn the performance of this trading system around. The low win rate gives the idea that the trade entry requirements might not be optimal. Confirmatory tools might be needed to improve its success rate.
One way to possibly improve the win rate of the robot is to use an oscillator that gives overbought and oversold readings such as relative strength index or stochastic, and/or another indicator that shows market momentum such as momentum indicator or average directional movement index.
In the strategy tester, it appears that the program has a trailing stop function as trade modification is performed by the robot on various occasions. However, this is not the case at all, and the user can easily make this realization by looking at the stop loss and take profit values during modification. These values do not change at all, meaning the expert advisor wasted some resources in performing an unnecessary action.
Once the expert advisor is modified programmatically, testing must be done for a significant amount of time. If possible, parameters are optimized to determine the best combinations that yield the most profit with the least drawdown. This is essentially the purpose of optimization. Once the robot begins to show positive results, the settings must be used in testing again without optimization to see if similar results are achieved. Thereafter, the trading system is ready to be tested in a demo account.