Yen Trader 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:
- Yen Trader Expert Advisor For MT4
- The Yen Trader Expert Advisor For MT4 – Entry Criteria
- The Yen Trader Expert Advisor For MT4 – Exit Criteria
- The Yen Trader Expert Advisor For MT4 – Room for Improvement
The Yen Trader Expert Advisor For MT4, as the name suggests, is designed to be used in trading yen pairs of the foreign exchange market. Therefore, the user must apply the robot to any of the following pairs: GBPJPY, USDJPY, EURJPY, USDJPY, CHFJPY, AUDJPY or CADJPY. While the user can use exotic pairs having yen as a counter-currency, the major pairs are preferred due to their relatively lower spreads and stop levels. With the default settings, the trading system should be traded on GBPJPY hourly chart, so the user must attach the robot to this specific pair and period.
The Yen Trader Expert Advisor For MT4 – Entry Criteria
The Yen Trader Expert Advisor executes its main trading algorithm when a new candle has developed on the current timeframe (should be hourly chart). Before someone uses this expert advisor in trading, he must fully understand a wide range of parameters in Inputs to make full use of this trading system.
- Magic_Number = 160704 – Each trade taken by this robot has this unique identification number that can used in trade manipulation.
- time_frame = PERIOD_H1 – The signals for trade entry are derived from the hourly chart regardless if the current timeframe is different.
- Major_Code = "GBPUSD" – This pair is the first pair in a set of three pairs where data is obtained for trading the third pair. The user can specify another pair as he pleases in consideration with the other pairs in the set.
- UJ_Code = "USDJPY" – This pair is the second pair in the set where data is generated for trading the third pair. The user may set another pair in consideration with the other elements in the pair.
- JPY_Cross = "GBPJPY" – This pair is the third pair in the set that the expert advisor trades based on the signal obtained from the two other pairs. The robot is running on this symbol. This symbol is derived from the combination of the other pairs.
- Fixed_Lot_Size = 0 – Since the value of this variable is zero, the expert advisor will compute the lot size based on a certain percentage of the balance, resulting in variable position sizes.
- Bal_Perc_Lot_Size = 1 – This is the percentage of the account balance used for lot size computation.
- SL_Pips = 1000 – Each trade has a defined stop loss of 1,000 points or 100 pips.
- TP_Pips = 5000 – Each trade has an explicit stop loss of 5,000 points or 500 pips.
- BE_Pips = 200 – The stop loss of a trade is shifted to the entry price when the trade has gained 200 points or 20 pips.
- Trail_Stop_Pips = 200 – Trailing stop is also activated when a trade gains 200 points or 20 pips.
- Trail_Stop_Jump_Pips = 10 – After the breakeven point, every time a trade gains additional 10 points or 1 pip, the stop loss of the trade is modified to secure 10 more points or 1 more pip.
- entry_type = ENTRY_BOTH – With this value, the expert advisor is instructed to take both buy and sell trades.
- max_spread = 100 – The expert advisor will only take a trade signal if the current spread is less than 100 points or 10 pips.
- max_slippage = 10 – When this value is used, the user accepts a maximum slippage of 10 points or 1 pip between requested price and execution price.
- max_orders = 10 – This instructs the robot to add a trade when a signal is come upon, but only if the total number of trades on the active symbol is less than 10.
- close_on_opposite = false – With this setting, a trade will not be closed by the robot when an opposite signal occurs.
This expert advisor must be attached to the target pair because the robot will trade the active symbol. The target pair is based on two other correlated pairs. Since the other two pairs specified in Inputs are GBPUSD and USDJPY, the robot will trade the GBPJPY pair. A buy trade will be taken if the close price of the previous candle on the GBPUSD hourly chart is greater than the high price of the last five bars including the current bar on the same chart and if the close price of the previous candle on the USDJPY hourly chart is greater than the high price of the last five bars including the current bar on the same chart.
On the other hand, a sell trade will be executed if the close price of the previous candle on the GBPUSD hourly chart is less than the low price of the last five bars including the current bar of the same chart and if the close price of the previous bar is less than the low price of the last five bars including the current bar on the same chart.
Since Fixed_Lot_Size (see above list) is equal to zero by default, the expert advisor does not use a constant lot size and ignores the lot amount set in Inputs. Instead, the lot size is calculated based on risk percentage. The trade volume may be big or small depending on the account size, but normally the lot size is bigger than the minimum lot amount provided by many brokers (normally 0.01). If the account has made money on the previous trade, the lot size for the next trade is bigger. On the contrary, if the previous trade was a loss, the lot size of the next trade is smaller.
The Yen Trader Expert Advisor For MT4 – Exit Criteria
As set out in Inputs, the Yen Trader Expert Advisor sets a stop loss of 100 pips and a take profit of 500 pips in each trade. With this risk-reward ratio, a trade campaign should succeed over the long term. This is because the trading system would not need a high win rate to make money. However, the balance between risk and reward is disturbed because of the breakeven and trail stop functions.
When a winning trade gains at least 20 pips, its stop loss is immediately moved to breakeven and trailing stop follows thereafter. Every additional pip gained would prompt the expert advisor to move the stop loss to the same amount, locking in one more pip every time. This will continue until price touches either the take profit target or the new stop loss price. However, as observed in testing, the take profit was not reached even once. This is because the take profit objective is way too far.
The Yen Trader Expert Advisor For MT4 – Room for Improvement
The Yen Trader Expert Advisor did not take a lot of trades during testing. The test was run for five months of test data in the GBPJPY hourly chart, but the robot executed just nine trades. The test result was not positive but not too bad either. A little portion of the capital was lost, and the drawdown was somewhat high (about 10 percent). The loss happened even if the robot won 88 percent of all trades opened.
When the journal in the back tester was checked, it was noted that several errors in order modification happened. The actual error was related to invalid stops. It was interesting to note that this error came even when the take profit and stop loss were placed way too far from the market price. The reason for this error cannot be accurately established at this point. It could be some type of error in the algorithm. Therefore, before someone attempts another test in the strategy tester or demo account, the issue must be addressed first via code review.