Welcome to the RoboForex blog. Today, we will discuss the simplest trading algorithm you can ever imagine and perhaps the simplest MT4 robot on this blog. The Skdon Trend expert advisor is a trading algorithm based on another algorithm or, more precisely, technical indicator.
Skdon Trend working principles
The Skdon Trend robot is based on an indicator with the same name – Skdon Trend System, which, in its turn, is based on another indicator called Skdon Trend Signal. So, if you come across the phrase “the Skdon Trend Signal expert advisor”, keep in mind that it is most likely the indicator, not the expert advisor (make sure you download the right file as the robot is quite difficult to find).
The files with the robot and the indicator are to be distinguished because each of them must be kept in their respective catalog inside the MT4 terminal for the whole system to work correctly. Also, I advise you against renaming the files as it may lead to their complete inoperability.
The Skdon Signal indicator
The indicator is not much more complicated than the expert advisor based on it. This is just a Moving Average represented on the chart differently and lacking certain customizable parameters so that there are only two left.
- MaMetod is the averaging method of the Moving Average: 0 is Simple (SMA), 1 is Exponential (EMA), 2 is Smoothed (SMMA), 3 is Linear-Weighted (LWMA).
- MaPeriod is the calculation period of the MA.
On the chart, this indicator looks like blue and red bars; the color depends on the current price direction. Thus the trend is defined. In essence, the trend is detected by the direction of the MA line, which parameters are customized in the indicator settings.
Technical characteristics of the Skdon Trend expert advisor
When using this robot both for tests and real trading, you will not be able to set up the indicator as the expert advisor allows setting up only the size of the lot.
Due to this, the expert advisor does not meet modern requirements for such robots as it does not allow for setting up the parameters that influence trading directly.
Moreover, I did not manage to find the initial code of both the expert advisor and the indicator, while the latter could be of much help as the user could customize the default parameters, which would give the robot at least some advantages.
Optimizing Skdon Trend
As I have written above, the main parameters influencing trade cannot be changed in this expert advisor; thus, optimization means changing the parameters that influence trading and are always available to the user.
I mean choosing currency pairs and timeframes. To optimize the expert advisor, if I may put it like this, I chose EUR/USD and tested the expert advisor on all timeframes. I will tell you right away that in more than half of the cases I ended up with a loss.
Also, I noted that the smaller the timeframe, the worse the results of trading; on minute charts, the trend on the test deposit goes strictly down.
The best results were received on daily charts, which is explicable because on large timeframes trends are much smoother and lengthier.
Today, many Forex brokers provide over 30 currency pairs for trading as well as other instruments, such as Dax 30 and S&P 500 indices. Each instrument has 7 timeframes available for optimizing, except weekly and monthly ones.
I have tested numerous Forex expert advisors and I may say that Skdon Trend does not meet modern requirements and is unsuitable for successful trading, though it appeared as long ago as 2008.
Knowing the working principle of this expert advisor and the basics of the MQL language, you can easily write an expert advisor that will feature all the necessary optimizable parameters and an open initial code. Even a beginner in writing robots will perform this task with ease.