Smoothing Average 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!
The Smoothing Average Expert Advisor For MT4 is an interesting trading robot. It is so simple yet so effective. It’s different from other Expert Advisors such as the Locker Expert Advisor. One of the differences between the Locker Expert Advisor and the Smoothing Average Expert Advisor is the amount of trades it takes.
The Smoothing Average Expert Advisor on it’s core uses a simple strategy. Can you guess? Well, based on the name, you might guess that it is something like moving averages which dictate the Expert. You would be right and wrong.
The Smoothing Average Expert Advisor uses a moving average at its core for trading. You got that right. But it is smoothing it. How does it do that?
Well, we have a setting on the Smoothing Average Expert Advisor which is called “Smoothing”. This setting’s input, is added as points to the moving average.
We check whenever the moving average, which is a “Simple Moving Average”, is above or below the bid or ask of the price.
You can also specify the period of the MA. What makes The Smoothing Average Expert Advisor different from other Experts that trade with only a simple moving average, is that the smoothing will make it take fewer trades during the year. But those trades are mostly green.
I’ve tested the Smoothing Average Expert Advisor on different markets. It has worked wonders for the account. It only takes around 20-30 trades a YEAR.
That’s something which some of you guys might not prefer. I mean, if you wait 1-2 weeks for a trade, basically that takes the fun out of it right?
Well, if you want steady profits, you don’t necessarily need your Expert Advisor to place 10 trades a day. It really depends on your trading personality & such. But taking less trades a year means a higher success rate.
Smoothing Average Expert Advisor For MT4 - THE SETTINGS
Period_MA - Period MA setting input, represents the period of the moving average which dictates the Smoothing Average Expert Advisor. The default value is at 200.
Risk - The risk setting input, represents the percentage amount of risk, the Smoothing Average Expert Advisor will risk per trade. The default is at 5. Which might not be the most optimal. But considering that the Smoothing Average Expert Advisor takes 20-30 trades a year. It’s not a bad idea. Most of the Forex World recommends 1 to 2 percent risk per trade. Well logically, that depends a lot on your trading frequency, or how much your trading during the day, week, month or year.
Smoothing - The smoothing setting input is probably the most important one. It will affect the Smoothing Average Expert Advisor in a huge way. The default value is at 1400. So that means 140 pips. This means that the Smoothing Average Expert Advisor will take a bur or a sell whenever the price is above/below the moving average + 140pips. If you play around with this setting it will affect the amount of trades it takes. If you place something lower of a value like 500 for example. It will take more trades. But more trades isn’t always better trades. So be careful with this one.
Smoothing Average Expert Advisor For MT4 - BEST WAY TO RUN
I’ve played around in the backtest a lot with the Smoothing Average Expert Advisor. The results are very interesting. Depending on the setting that you give it. You might get very different results.
As I said, the smoothing input affects the Smoothing Average Expert Advisor in a huge way. This best setting for this input would depend on the market. Generally. The more volatile the market is, the higher this setting needs to be.
The Smoothing Average Expert Advisor would run the best in trending markets. When there is high price movement, this Expert prospers.
I would not recommend running The smoothing Average Expert Advisor on ranging markets, it doesn’t work as well as on trending markets.
Running the Smoothing Average Expert Advisor with higher risk, normally, gives better results. Better profits, higher wins, but of course, with that comes higher drawdown as well.
I would not recommend to be greedy & put a high number on the risk input of the Smoothing Average Expert Advisor. It’s best to find a sweet spot & get consistent returns over-time. This Expert Advisor is capable of returning consistent profits. You just need to find the right market for this Expert Advisor.
WAYS TO IMPROVE THE EXPERT
There are many ways to improve the Smoothing Average Expert Advisor. One of them is to restrict trading times. Since the Smoothing Average Expert Advisor does best on trending markets, I would recommend to only trade it on the beginning of London Session. That would reduce the bad trades by quite a bit & guarantee higher returns on each market. Normally, during the first hours of London Session, the markets usually have their highest movement of the day. Logically, that would make the Expert way better.
Another way to improve the Smoothing Average Expert Advisor would be to add another oscillator for confirmation. If something like Relative Strength Index (RSI) indicator, was added to the Expert for confirmation, there’s a higher chance that the Smoothing Average Expert Advisor would trade more efficiently.
Another thing is the Smoothing Average Expert Advisor doesn’t use Stop losses & take Profit. It closes a buy / sell when the bid / ask price closes below / above of the moving average plus smoothing input. That means a lot for the performance of this Expert Advisor. Maybe adding fixed stop losses based on Average True Range (ATR) indicator, would help not with the trade selection, but with setting reasonable stop losses. The ATR indicator displays the average price movement for a specified period of time.
Adding the ATR Indicator to the Smoothing Average Expert Advisor to select entries as well, would help a lot with trade selection. Checking if current ATR is higher than a higher period ATR, would suggest that the market might be trending, which is better for the Smoothing Average Expert Advisor.
Smoothing Average Expert Advisor For MT4 - FINAL WORDS
I’ve given you a quick overview of the Smoothing Average Expert Advisor. This might or might not be the option for you. I suggest you back-test everything before trying to trade it live. Find your sweet spot as far as settings & markets go. Always remember to trade with care!