Generic v14 Expert Advisor – Night Scalper on Steroids

Good time of the day, dear colleagues!

Scalping in the Asian session is one of the most stable algorithms that brings profit on Forex. However, the biggest disadvantage of such robots is the large stop-loss, which can be restored up to several months. How can this defect be leveled?

An improved version of the Generic TLP Advisor was developed with an order grid as an extension. And for more than a year, this upgraded advisor has been trading with profit. In this review, we will analyze the pros and cons of the night scalper “on steroids” called Generic V14.

 

What is the main difference of Generics V14?

The Generic v14 version still tracks and trades on the signals of the anticipated trend reversal, but the algorithm is optimized for a more “accurate entry”. The grid of orders, averaging the 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 increases.

To avoid excess frequency of transactions (knees) and thereby reduce the burden 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 volatility of trades.

Characteristics of the EA “Generic v14”

Platform: Metatrader 4
Currency pairs: GBPUSD, USDJPY, GBPCAD, GBPCHF, EURGBP, EURCHF, USDCAD, USDCHF
Timeframe: M15
Working hours: Asian session

Recommended brokers: Roboforex, Alpari

Installing the Advisor

Detailed installation instructions are described in the article on the website.

After rebooting Metatrader, on the “Navigator” window we find Generic v14 and “drag” it to the selected chart of the currency pair of the M15 timeframe.

Attention!

Do not forget to download the preset settings corresponding to the pair being traded. For example, for a pair of AUDCAD, you need to download a preset with the name “Generic v14.01.56 - AUDCAD M15”.

In order to download the preset, when installing the Expert Advisor on the chart, you need to click the Load button and select the desired set in the settings window.

The strategy of the Advisor’s work

Transactions open at the end of the boundaries of the Bollinger price channel, formed by three moving averages in accordance with the principle implemented in earlier versions of Generic. The advisor builds these lines independently, without the middle range marking.

• The long automatically opens when the M15 candle crosses the lower band of the indicator;
• Shorts automatically open after the same signs, only in this case the candle goes beyond the upper Bollinger Band.

In the trading algorithm, the Gaussian distribution principle is 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 bands. They are represented by two moving averages, the input below and above which is calculated in order to roll back and move the price to the opposite side.

There is a number of filters in the strategy:

• Range width (the spread between the moving averages of the indicator);
• Indicators: CCI, IMA, ATR, StDev;
• Restriction on the time of stay in the profitable transaction;
• Prohibition of entry as the spread between the bid/ask price of the pair increases;
• Prohibition of entry by the size of the maximum price range of the candle.

Until the drawdown, the size of which is determined by the stop-loss level in the “old system” strategy works in a “traditional way”.

The positive result of the trade is closed according to the user settings, “tied” to the width of the channel or specific values in points indicated in the take-profit function. In order not to miss the “paper profit”, after reaching 50% of its intended value, filters that track the trend change are launched to close the profit when the trend is reversed.

The first knee of the grid opens at a distance of the current range of the ATR multiplied by the coefficient selected by the user. It also determines the step between the subsequent orders - the inputs to the market as the loss increases.

Martingale - an increase of each subsequent order, is launched from the second tribe. The settings provide for limiting the “depth of the grid”, “tied” to the maximum deviation in “pips” from the initial input and the dynamic transition of the take profit to the breakeven.

The values of the basic settings of the strategy are placed on the information panel for operational control: the level of take-profit and the number of its filters, the trading time, spread, lot size, and open positions:

Monitoring

As usual, in the review of the Expert Advisor, we present the monitoring of the “field tests” in verified myfxbook service from various traders:

Generic ir Generic 14 monitoring

Testing Advisor Generic v14

Testing is an obligatory process before the launch of any Expert Advisor in a demo or real trading. It is designed to provide financial security, as it can preliminarily identify the losing strategies, as well as point out errors or optimization methods to improve trading results.

For the test to be as close as possible to the “field conditions”:

• Prepare quotes with maximum accuracy (use the Dukascopy quotation base if possible);
• Be sure to consider the spread size in the test;
• Choose a period of historical quotations, with the presence of a flat, a trend and jumps in volatility.

Given the above, we conduct a series of tests in Metatrader, using the method of generation of all ticks and the current spread. All tests are conducted with a fixed lot that simplifies further calculations of the “deposit margin”, based on the numbers of maximum drawdown and “depth” of the grid.

Generic v14 Lot 0.01 GBPUSD:

Generic v14 Lot 0.01 USDCHF:

Generic v14 Lot 0.01 EURUSD:

Generic v14 Lot 0.01 USDCAD:

Generic v14 Lot 0.01 NZDUSD:

Generic v14 Lot 0.01 AUDUSD:

Generic v14 Lot 0.01 EURAUD:

The advisor showed fairly stable results on the major currency pairs, while in conjunction with the JPY currency, it was not possible to achieve acceptable results. This is due to the sensitivity to the volatility of the strategy and the condition of “minus triggering” - that is, the trade will be conducted around the clock until all the grid transactions are closed.

Therefore, Martingale’s strategy can accumulate an increasing loss in a directed trend, which will lead to a stop-out closure due to the insufficiency of the deposit to maintain an open large common position.

To assess the resulting profitability of the multi-currency trading, we reduce the received reports to one using EA Analyzer.

Notice how the EA Analyzer tester more clearly demonstrates the visualization of the use of the leverage on the loaded AUDCAD statistic - the run from 2011 to 2018 showed that over the period of 7 years the drawdown problems arose only in early 2016:

The visibility of diversification is presented in the merger in the analyzer of the two reports, described above with the pair USDCHF, whose statement revealed the “problem area” in May 2016:

The drawdown is leveled if we consider two pairs in the same portfolio:

In 2016, the Forex market “experienced” a volatility jump on 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 scalper test on a pair of GBPUSD will be indicative of how the order is “taking the hit” in the mode of significant ups and downs of the market.

By connecting the three instruments together, we get a diversified, constantly growing chart:

Other tests you will find in the archive with an advisor at the end of the article.

Description of Generic v14 Settings

At the stage of attaching Generic v14 to the chart, access to the Advisor’s settings window will be opened. Do not forget to download the desired preset settings!

If you intend to entrust the robot to trade, put the appropriate mark on the “Expert Advisors” tab and allow auto-trade in the terminal itself on the quick access panel:

The input parameters are divided into several blocks of individual indicator settings that are part of the trading system, management settings, postponement of the positions for the next day, and active management of the Martingale tactics warrants grid.

The main settings section of the “General Settings” includes:

Set Name - the name of the preset;

Magic Number - a unique number used to identify the algorithm, so that several robots working on the same chart do not intercept orders from each other;

Time Frame - the option allows the user to scale the strategy to any time interval (recall that the recommended period is M15). The default value is current - the algorithm will start at the current value displayed on the open chart;

Max Spread is a parameter that has a dimension in points (“pips”), indicating the size of the maximum deviation from the entry point, after which no new “knees” are opened - grid orders. The default is zero, because it is empirically proven that with intraday (night) trading, the restriction does not make sense;

Lot - the size of the position, which depends on the amount of depo, a default is the minimum - 0.01 lot;

DepoPer001Lot - automatic binding of depot amount to 0.01 lot. For example, the value 300 will prohibit any transactions if the deposit falls below $ 300. The same function will start to take 0.02 lots with the account growth up to $ 600 and so on;

Take Profit - fixed profit size, the value of the basic settings, based on empirical observations provides an optimal value of 35 points;

Dynamic_TP: Channel_Percent is a dynamic method of calculating the profit of a transaction as a percentage of the total size between the bands. The default is zero, which means the strategy works on the previously established constant profit margin;

Dynamic_TP: Min_Size - the lower threshold of the variable, sliding take-profit (decreases along with the channel);

ExitDDPercent - the threshold for automatic withdrawal from all transactions, is set as a percentage of the deposit;

Configuring Bollinger Bands and Variance Settings - Bollinger Bands Setting

The indicator period is BB: Period;

The size of the channel by deviation is BB: Deviation;

“Depth” of going beyond Bollinger bands necessary for opening a deal (measured in points) - BB: Delta;

The threshold distance between the bands above which the Advisor opens trades (dimension in points) - BB: Min Channel Width;

CCI Indicator Settings

Period for calculating the curve of the indicator. The default is zero, i.e. the filter is not used in the strategy - CCI: Period;

Overbought/oversold zones - CCI: Level (set by one digit, symmetric);

Filter the price range of candles - Candle Size Filter;

The extremum of the range of the candle (from the minimum to the maximum of the “tails”) that occurred at the specified interval, prohibiting entering the position -Max Candle Size;

The period at which the extremum of the candle’s range is determined is Bars For Analyze (both values are set in points);

Settings of conditions for building the order grid - GRID SETTINGS

Period - ATR Period;

ATR indicator multiplier for calculating the step between trades-ATR Multiplier;

The Martingale coefficient for the following grid orders is Multiplier (works from the second transaction);

The number of open transactions that determine the permanent movement to a lossless take-profit - BE_Level;

Parameters of Advisor stop with forced closing of all transactions - EXIT SETTINGS

The size of the “planned” take-profit, including 4 filters of early profit fixation (described below) - Exit Profit Percent (in percent);

The maximum distance from the opposite indicator band for the dynamic closing of the transaction (in points) is Exit BB Filter: Out Channel Distance (at zero value of the parameter the filter is off);

Signal for closing by overbought/oversold levels (specify the period value - Exit CCI Filter: Period - the filter is off at zero value);

Closing a position when a trend is changed by a simple moving average whose period value is indicated in the settings line - Exit MA Filter: Period;

The number of minutes limiting the holding of a profitable position is Exit Time Filter: Minutes;

Trade Time Strategy Filter - TRADE TIME FILTER

The hourly difference between GMT and current data in the broker’s terminal is GMT Offset (in hours);

Opening hours for the Advisor is Start Trade Hour;

Start trading minutes is Start Trade Minute;

The end of the trading session is End Trade Hour;

Minutes of the end of the trading session is End Trade Minute;

Transferring a position - ROLLOVER FILTER

Enabling (true) turning off (false) the filter for position transfer - Rollover Filter;

The filter start time is Start Rollover Hour;

Startup Minutes - Start Rollover Minute;

Time to stop the filter - End Rollover Hour (in hours);

Time to stop the filter - End Rollover Minute (in minutes);

Other settings - OTHER SETTINGS;

Display/hide the Generic v14 information panel in the toolbar of the selected tool - Show Panel;

Additional signs for the signals of the indicator’s work on the chart - Show Signal Points

The color of the information bar - Panel Color

Logging Mode - Logging Mode

• Full-featured mode - All;
• Selective display (errors only) - Only Errors;
• Disable the logging of reports on the work of Generic v14 - Off;
• Save log in a text file - Write Log File (the path by which you can find it: MQL4 / Files or Tester/Files, when testing).

Money Management

Generic v14 settings by default, the second knee of the grid will open with a coefficient increasing the position by 1.6, note that this value is tied to the size of the fixed take-profit. To calculate this multiplier for other parameters, use the formula:

K = 1 + (Stop Loss/Take Profit)

To calculate the deposit size for 1 lot, you need to determine the depth of the grid, that is, the number of possible open orders. Given the tests carried out and the selected working timeframe, the total number of transactions will not exceed 10 knees. In this case, let’s set a 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 understand the size of the deposit for different types of accounts.

ACCOUNT TYPE	MINIMAL LOT	MINIMAL DEPOSIT	BROKERS
Сent (with mini lots)	0.01	30$ (3000 cents)	Forex4you
Cent	0.1	$300	Roboforex
Standard	0.01	$3000	Alpari
Pro-accounts	0.1	$30000	Classical type accounts in many brokers

So, if you are going to trade with 3 pairs, then you will need $ 9000 to trade a lot of 0.01. Fortunately, there are cent accounts that make trading possible and with a very small deposit.

Conclusion

The principle of trade, based on expectations of price return to the Bollinger range, is strategically justified only during the Asian session and is most likely in the absence of significant news. If a trader wants to increase the effectiveness of trading, 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 multicurrency strategies note the Advisor’s high profitability in cross-pairs, but as tests and practical trade show, it is better to evenly distribute risks by including in the portfolio the main currency pairs allowed by the strategy.

And remember that, despite the tests, the advisor remains potentially dangerous. Do not forget the rules of working with dangerous advisors.

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Important !

For a correct advisor operation, the trading terminal should be on from the market opening on Sunday until its closure on Friday evening. If you don‘t have a possibility to keep your computer working 24/5, we recommend you to use the VPS Server services.

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Download Generic v14