News MT4 EA

This Expert Advisor (EA), named NEWS MT4 EA, is designed to trade based on certain market conditions, such as volume, volatility, spread, and trend direction, and uses specific trading hours.

The initial idea for this EA was to trade in news events when the volume is high and new trends start to form due to significant news events.

With the tests, we started to see that it could also be used in other market conditions, depending on our setups.

The main idea is to use candle volume to track daily trends or trend-changing events. For this, the EA uses candles to determine the trend, the ATR indicator to determine the volatility of the asset, and the volume to determine the potential for a trend.

Here’s a breakdown of its main logic, functionality, and setup.

Key Logic and Functionalities

1. Expiry and License Check:
   • The EA checks if it has expired by comparing the current time to a pre-defined expiry date (ExpiryDate). If expired, it stops functioning.
   • It also includes code for verifying specific brokers or accounts (currently commented out).
2. Trading Conditions:
   • The EA operates only within specified hours (StartHour to EndHour), set by the extern variables StartHour, StartMinute, EndHour, and EndMinute.
   • It uses a Spread Filter (CheckSpread) to ensure that the current spread does not exceed MaxSpread.
   • The Volume Filter (CheckVolume) ensures that the candle volume meets a minimum threshold (MinCandleVolume) before allowing trades.
   • The Volatility Filter (CheckVolatility) uses the ATR indicator to check for sufficient market volatility, with the threshold controlled by ATRThreshold.
   • An H4 Trend Filter (CheckH4Trend) checks if the H4 candle’s close is higher than its open, signaling a bullish trend for trades in that direction.
3. Profit and Loss Limits:
   • Daily and weekly profit/loss limits are monitored with the CheckProfitLossLimit function. If either the daily or weekly profit exceeds a specified percentage of the account balance (DailyProfitLimit or WeeklyProfitLimit), the EA halts trading.
4. Trading Strategy:
   • Trades are opened based on recent candle data: if both the previous and current candles are bullish (close > open), it initiates a BUY; if both are bearish (close < open), it initiates a SELL.
   • Before placing a trade, it checks all configured filters, as well as open trades (using CheckForOpenTrades) to ensure no other trade for the symbol with the same MagicNumber is active.
5. Trailing Stop and Break-Even Logic:
   • If enabled (UseTrailingStop), the EA applies a trailing stop based on ATR, using two multipliers (initialTrailingStopMultiplier and expandedTrailingStopMultiplier) for tighter and wider trailing stops depending on market conditions.
   • Break-even functionality is implemented with BreakEvenPoints (distance in points to move stop-loss to breakeven) and BreakEvenBuffer (buffer beyond break-even for additional safety).
6. Chart Information Display:
   • The EA creates and updates information on the chart, displaying key metrics such as:
     • Magic Number
     • Open Buy/Sell Orders
     • Net Profit/Loss
     • Current Spread
     • Profit Target
   • These details help the user monitor the EA’s trading state.

Key Extern Variables (Setup)

• Trade Management:
  • MagicNumber: Unique identifier for this EA’s trades.
  • Lots: Lot size for each trade.
  • Slippage: Allowed slippage for trades.
  • StopLoss and TakeProfit: In points, these set the SL and TP for trades if enabled.
• Filters and Conditions:
  • Volume and Volatility: MinCandleVolume, ATRThreshold, UseCandleVolume, UseVolatilityFilter.
  • Trend and Spread: UseH4TrendFilter to enable/disable the H4 trend filter, MaxSpread to set a maximum spread filter.
• Profit and Loss Limits:
  • DailyProfitLimit and WeeklyProfitLimit: Set as percentages of account balance.
  • UseProfitLossLimit: Boolean to enable or disable profit/loss limits.
• Trading Time Window:
  • StartHour, StartMinute, EndHour, EndMinute: Define the hours during which the EA can operate.
• Trailing Stop and Break-Even:
  • UseTrailingStop, initialTrailingStopMultiplier, expandedTrailingStopMultiplier, BreakEvenPoints, BreakEvenBuffer: Parameters controlling the trailing stop and break-even levels.

How have we been using the News MT4 EA?

This EA has been tested for a couple of months so far, with interesting results. In order to get the best results, it is important to use the Minimum candle volume to trigger trades function with the adapted value for each asset so that it opens trades only in moments when the asset shows some volatility.

Some assets perform well only in determined periods of the day; for that, you will use Minimum candle volume to trigger trades and the StartHour and EndHour functions to enable and disable trading in hours when the trend is not usually strong.

One important thing is the trailing stop functions:
extern bool UseTrailingStop = false;
extern double initialTrailingStopMultiplier = 1.2; // Initial tighter trailing stop (ATR * 1)
extern double expandedTrailingStopMultiplier = 2.5; // Expanded trailing stop (ATR * 2)

Even though we know that, in theory, the trailing stop is attractive, our tests showed that in many cases, it closes too soon the trades, so, lately, we don’t use it, but again, you are free to create your setup, and who knows you show us, that we are wrong, about trailing stop.

We are testing the News MT4 EA using two different logics:

1 – Small Stop Loss with a Large Take Profit

In Forex Pairs, we use a Stop Loss of 100 or 200 points (10 to 20 pips) and a Take Profit of 500 to 1000 points (50 to 100 pips).

This 1:5 up to 1:10 ratio means that most of the trades are losses, but the EA never loses a large amount of funds. It can have days when it loses all the trades (especially if your candle volume is not adequate), but when it makes a profitable trade, it can recover all in just one trade.
One of the pairs we saw good results was GBPUSD since it is quite volatile and can go in a trend for days.

One of the problems is the mental aspect of using this setup. We may see four, five, or six trades in a row to be Stopped and lose the patience to wait for one simple profitable trade that will reverse the lost value by hitting the Take Profit.

2 – Big Stop Loss with a Medium / Large Take Profit

This is maybe the most logical way to use the News MT4 EA because since it searches for a Trend, it is perhaps better to have a Stop Loss of around 500 to 1000 points (50 to 100 pips) and a Take Profit of 500 to 1000 points (50 to 100 pips).

In this case, we have a ratio of 1:1, meaning that to be profitable, we need to have more than 50% trades to hit the Take Profit.

One very helpful tool for this setup is the End-of-Day Order Manager. It closes the profitable orders at the end of the day and waits for the new D1 and H4 candles to form for the next day.

Summary

The NEWS MT4 EA is a news-based trading algorithm with safeguards to prevent high-spread trading, ensure volatility and volume are adequate, and align trades with the H4 trend.

Its use of stop-loss, take-profit, and trailing stop mechanisms enables risk management, and it has daily and weekly profit/loss limits.

This EA also restricts trading hours and tracks profit across trades to display real-time trading data directly on the chart.

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Download the News MT4 EA

The News MT4 EA is in the test stage; please don’t use it in a real account until you have tested it in a demo account.

You need to adapt the hours of the News MT4 EA to your broker time zone.

When we wrote this post, we used a broker in the UTC+3 time zone (summertime).

You can download the End-of-Day Order Manager tool on this link: Dropbox link to MT4 EA

Don’t have an MT4 Demo account to test the tool?

You can test it on any broker that offers MT4 demo accounts.

4XC – MT4 Demo Account and 100% deposit bónus with the promo link: PROMO LINK

AVA Trade – MT4 Demo Account: LINK FOR DEMO

ROBO FOREX: MT4 Demo Account: LINK FOR DEMO

If you try the News MT4 EA, please don’t forget to tell us about the results, suggestions, and ideas to improve this EA.

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