Advisor Generic v14 - night scalper on steroids
Good day, dear colleagues traders!
Scalping in the Asian session is one of the most stable Forex profitable algorithms. However, the biggest minus of such robots is the large stop-loss, which can be restored up to several months. How can this deficiency be leveled?
The bright minds of our forum have developed an improved version of the Generic A-TLP Expert Advisor with an addition in the form of a grid of orders. And for more than a year this "pumped" adviser has been trading in plus. In this review, we will analyze the pros and cons of a night scalper "on steroids" Generic V14.
What is the main difference between the Generic V14?
I would like to express special thanks to our forum member Rever27 for developing an adviser.
The Generic v14 version still tracks and trades based on the signals of the expected trend reversal, but the algorithm is optimized for a more “accurate entry”. A grid of orders averaging loss is dynamically built against the movement of quotes outside the upper and lower Bollinger Bands - in areas where the probability of a price return is increasing.
To avoid excessive frequency of transactions (knees) and thereby reduce the load of the current loss on the deposit, the distance between them is selected using the ATR indicator, which helps to take into account the size of the current trading volatility.
Platform: Metatrader 4
Advisor Version: 14.01.64
Currency pairs: GBPUSD, USDJPY, GBPCAD, GBPCHF, EURGBP, EURCHF, USDCAD, USDCHF
Working hours: Asian session
Recommended Brokers: Roboforex, Forex4You, Exness
Detailed installation instructions are described in the article on the site.
After rebooting Metatrader, in the Navigator panel we find Generic v14 and drag it into the selected window of the currency pair of the M15 timeframe.
Do not forget to load the preset of the settings corresponding to the traded pair. For example, for an AUDCAD pair, you need to load a preset called “Generic v14.01.56 - AUDCAD M15”.
In order to load the preset, when installing the adviser on the chart, in the settings window, click Download and select the desired set.
Advisor Work Strategy
Transactions are opened at the rebound from the borders of the Bollinger price channel, formed by three moving averages according to the principle implemented in earlier versions of Generic. The adviser builds these lines independently, without indicating the middle of the range.
- Long automatically opens when the candle M15 crosses the lower indicator ribbon;
- Short automatically opens after similar signs, only in this case the candle goes beyond the upper Bollinger band.
The trading algorithm incorporates the Gaussian distribution principle, based on the high probability of finding a random variable in the deviation interval up to 2 σ, which is dynamically outlined by the upper and lower Bollinger line. They are represented by two moving averages, the entry below and above which is carried out in the calculation of a pullback and price movement to the opposite side.
The strategy has a number of filters:
- Range width (spread between moving averages of the indicator);
- Indicators: CCI, IMA, ATR, StDev;
- Limit on the time spent in a profitable transaction;
- Prohibition of entry when the spread between the bid / ask price of the pair increases;
- The entry ban on the size of the maximum price range of the candle.
Until the drawdown, the size of which is determined by the stop loss level according to the "old system", the strategy works in the "traditional version". A positive result of a trade is closed by user settings “tied” to the channel width or specific values in points indicated in the take-profit functional. In order not to miss the “paper profit”, upon reaching 50% of its expected value, filters are launched that monitor the trend change in order to close the profit when the trend reverses.
The first knee of the grid opens at a distance of the current ATR range, multiplied by a factor selected by the user. It also determines the step between subsequent orders - market entries as the loss increases.
Martingale - an increase in each subsequent order, launched from the second knee. The settings provide for a limitation of the "grid depth", "tied" to the maximum deviation in "pips" from the initial input and the dynamic transition of take profit to breakeven.
The values of the main strategy settings are displayed on the information panel for operational control: the level of take profit and the number of its filters, set trading time, spread, lot size and open transactions:
As usual, in the review of the Advisor, we present the results of the “field tests” of the Forex robot on an account verified by the myfxbook service. Below is a report on the use of Generic v14 based on the results of tests on our site:
Testing the Generic v14 Advisor
Testing is a mandatory process before launching any Expert Advisor at demo and real trading. It is designed to ensure financial security, as it can pre-identify strategies-drains, as well as point out errors or optimization methods to improve trading results.
To make the test as close as possible to "field conditions":
- Play quotes with maximum accuracy (use the Dukascopy quotation base if possible);
- Be sure to consider the spread in the “runs”;
- Choose a plot of historical quotes, with the presence of a flat, a trend and jumps in volatility.
Given the above, we will conduct a series of tests in Metatrader using the method of generating all ticks and the current spread. We conduct all tests with a fixed lot, simplifying further calculations of the “deposit margin”, based on the figures of maximum drawdown and “depth” of the grid.
Generic v14 Lot 0.01 test GBPUSD pairs:
Generic v14 Lot 0.01 test USDCHF pairs:
Generic v14 Lot 0.01 test pair EURUSD:
Generic v14 Lot 0.01 test pair USDCAD:
Generic v14 Lot 0.01 test pair NZDUSD:
Generic v14 Lot 0.01 AUDUSD pair test:
Generic v14 Lot 0.01 test pair EURAUD:
The adviser showed fairly stable results on the main currency pairs, while in conjunction with the JPY currency, it was not possible to achieve acceptable results. This is due to the sensitivity to volatility of the strategy and the condition of “working out the minus” - that is, trading will be conducted around the clock until all grid transactions are closed.
Therefore, the Martingale strategy can accumulate an increasing loss with a directed trend, which will lead to a stop-out closure due to insufficient deposit to maintain an open large common position.
To evaluate the resulting profitability of multicurrency trading, we summarize the reports received into one using EA Analyzer.
Please note how the EA Analyzer tester more clearly visualizes the use of leverage on the loaded AUDCAD statement - a run from 2011 to 2018 showed that over a period of 7 years problems with drawdown arose only at the beginning of 2016:
Diversification is illustrated by combining in the analyzer the two reports described above with the USDCHF pair, whose statement revealed the “problem area” in May 2016:
The drawdown is leveled if we consider two pairs within the same portfolio:
In 2016, the Forex market “experienced” a jump in volatility at the events of 2016 due to Brexit, the historical reversal of the Fed rate and the election of Donald Trump as the US president. Therefore, a continuous test of the scalper on the GBPUSD pair will be indicative of assessing how the grid of orders “holds the punch” in the mode of significant ups and downs of the market.
Combining the three tools together, we get a diversified, ever-growing schedule:
You will find other tests in the archive with the adviser at the end of the article.
Description of parameters and settings of Generic v14
At the stage of attaching Generic v14 to the chart, the trader will have access to the Advisor settings window. Do not forget to download the desired settings preset!
If you intend to entrust the robot to trade, put a corresponding mark on the General tab and enable auto-trading in the terminal itself on the quick access panel:
Input parameters are divided into several blocks of individual indicator settings included in the trading system, money management settings, transferring positions to the next day and active management of the order grid according to Martingale tactics.
General Settings Block includes:
Set Name - preset name;
Magic Number - a unique number used to identify the algorithm so that several robots working on the same chart do not intercept order management from each other;
Time Frame - the option allows the user to scale the strategy to any time period (recall that the recommended period is M15). The default value is current - the algorithm will start working at the current value set on the open chart;
Max Spread - a parameter having a dimension in points (“pips”), indicating the size of the maximum deviation from the entry point, after which new “knees” do not open - grid orders. The default value is zero, as it is empirically proven that with intraday (night) trading, the restriction does not make sense;
Lot - position size, depends on the amount of the depot, the default is a minimum of 0.01 lot;
DepoPer001Lot - automatic linking of depot size to 0.01 lot. For example, a value of 300 will prohibit any transactions if the deposit size drops below $ 300. The same function will begin to tear 0.02 lots when the account grows to $ 600 and so on;
Take Profit - a fixed amount of profit, the value of the basic settings, based on empirical observations, provides an optimal value of 35 points;
Dynamic_TP: Channel_Percent - dynamic method of calculating the profit of the transaction as a percentage of the total size between the tapes. The default value is zero, which means the strategy works according to the previously set constant profit margin;
Dynamic_TP: Min_Size - the lower threshold of a variable, sliding take profit (decreases with the channel);
ExitDDPercent - the threshold for automatic exit from all transactions is set as a percentage of the deposit;
Indicator Parameter Block “ENTER SETTING” includes settings for two indicators and a filter for analyzing the price range of a candle for a user-defined period:
Setting Bollinger Bands and Deviation Settings - Bollinger Bands Setting
Indicator period - BB: Period;
Deviation Channel Size - BB: Deviation;
The "depth" of going beyond the borders of the Bollinger Bands necessary to open a transaction (measured in points) - BB: Delta;
Threshold distance between ribbons above which the Advisor opens deals (dimension in points) - BB: Min Channel Width;
CCI Settings Indicator Settings
Period for calculating the indicator curve. The default value is zero, i.e. filter not used in strategy - CCI: Period;
Overbought / Oversold Zones - CCI: Level (set by one digit, symmetrically);
Candle Price Filter - Candle Size Filter;
Extreme range of candles (from minimum to maximum "tails") that arose at a given interval, which prohibits entering a position - Max Candle Size;
The period at which the extreme range of the candlestick is determined - Bars For Analyze (both values are specified in points);
Settings for creating grid order - GRID SETTINGS
Period - ATR Period;
ATR indicator multiplier for calculating the step between trades- ATR Multiplier;
Martingale coefficient for subsequent grid orders - Multiplier (works starting from the second transaction);
The number of open transactions that determine the constant movement to breakeven of take profit - BE_Level
Parameters of stopping the Expert Advisor with the forced closing of all transactions - EXIT SETTINGS
The size of the “planned” take profit, including 4 filters of early profit taking (described below) - Exit Profit Percent (in percentages);
The maximum distance from the opposite indicator tape for the dynamic closing of the transaction (in points) - Exit BB Filter: Out Channel Distance (when the parameter value is zero, the filter is off);
Close signal on overbought / oversold levels (indicate the value of the period - Exit CCI Filter: Period - the filter is turned off at zero value);
Closing a position when changing a trend with a simple moving average, the period value of which is indicated in the settings line - Exit MA Filter: Period;
The number of minutes limiting the holding of a profitable position - Exit Time Filter: Minutes;
Trading Strategy Time Filter - TRADE TIME FILTER
The hourly difference between GMT and current data in the broker's terminal - GMT Offset (in hours);
Trading start hours for the Advisor - Start Trade Hour;
Minutes to start trading - Start Trade Minute;
Trading Hours - End Trade Hour;
Minutes of the end of the trading session - End Trade Minute;
Position transfer - ROLLOVER FILTER
Enable (true) disable (false) the filter to transfer the position - Rollover Filter;
Filter Start Clock - Start Rollover Hour;
Start minutes - Start Rollover Minute;
Filter Stop Time - End Rollover Hour (in hours);
Filter Stop Time - End Rollover Minute (in minutes);
Other settings - OTHER SETTINGS;
Show / hide the Generic v14 dashboard on the chart field of the selected instrument - Show Panel;
Additional designations of indicator signals on the chart - Show Signal Points
Dashboard field color - Panel Color
Logging Mode - Logging Mode
- Full featured mode - All;
- Selective display (only errors) - Only Errors;
- Disabling the registration of reports on the work of Generic v14 - Off;
- Writing a job report to a text file - Write Log File (the path by which you can find it: MQL4 / Files or Tester / Files, during testing).
Calculation of the deposit size taking into account the maximum possible losses when trading Generic v14 in Martingale mode
In the default settings of Generic v14, the second knee of the grid will open with an increase factor of 1.6, note that this value is tied to the size of a fixed take profit. To calculate this factor for other parameters, use the formula:
K = 1 + (Stop Loss / Take Profit)
To calculate the number of depots per lot, you need to determine the depth of the grid, that is, the number of possible open orders. Given the tests and the selected working timeframe, the total number of transactions will not exceed 10 knees. At the same time, we set the condition that the total risk for a series of transactions should not exceed 20%.
A lot of tests and real trading on the strategy show that the best option is to leave - $ 3000 per 0.01 lot for one pair.
The table below will help you figure out the size of the deposit for different types of accounts.
|Account type||Minimum lot and lot step||Min starting deposit||Brokers Examples|
|Cent (with mini lots)||0.01||$ 30 (3,000 cents)||Forex4you|
|Pro accounts||0.1||$30000||The classic type of account with most brokers|
Those. if you intend to use the adviser on, say, 3 pairs, then you will need $ 9000 to trade a lot of 0.01. Fortunately, there are cent accounts that make trading possible with a very small deposit.
The trading principle, based on expectations of a price return to the Bollinger band, is strategically justified only during the Asian session and is most likely when there is no significant news. If a trader wants to increase trading performance, he should avoid a surge in volatility on the news and strictly adhere to the night trading period.
Some practice traders using Generic v14 in multi-currency strategies note the Advisor’s great profitability in cross pairs, but as tests and practical trading show, it is better to evenly distribute risks by including the main currency pairs allowed by the strategy in the portfolio.
And remember that, despite the tests, the adviser remains potentially dangerous. Do not forget about the rules for working with dangerous advisers.
For the EA to work correctly, the trading terminal must be switched on from the market opening on Sunday evening until it closes on Friday evening. If you are unable to keep the computer operational 24/5, it is recommended to use the VPS server service.
P.S. Also, you can invest in the PAMM accounts of the author of the robot that this EA trades on: