Table of Contents
Introduction
The Random Trader EA is a versatile Expert Advisor that implements a random trading strategy while maintaining strict risk control through various customizable parameters. This free EA is designed to demonstrate proper risk management practices while providing a foundation for more complex trading strategies.
Key Features
- Random Entry System: 50/50 chance for Buy/Sell positions
- Flexible Stop Loss: Choose between ATR-based or fixed pip distance
- Breakeven Functionality: Protect profits with customizable activation distance
- Smart Margin Management: Option to use maximum available margin
- Universal Symbol Support: Works with all symbol types (Forex pairs, JPY pairs, cryptocurrencies)
- Adaptive Pip Handling: Proper pip value calculation for different digit formats (2,3,4,5 digits)
Input Parameters
1. Reward/Risk Ratio
Parameter: reward_risk_ratio
Default: 2
Description: Multiplier for take profit distance relative to stop loss distance
Example: A value of 2 means take profit will be twice the stop loss distance
2. Loss Calculation Method
Parameter: loss
Options:
- ATR (Average True Range based)
- PIP (Fixed pip distance)
Description: Determines how stop loss distance is calculated
3. ATR Multiplier
Parameter: loss_atr
Description: Multiplier for ATR value when calculating stop loss distance
Note: Only used when Loss Calculation Method is set to ATR
4. Fixed Pip Distance
Parameter: loss_pip
Description: Fixed number of pips for stop loss distance
Note: Only used when Loss Calculation Method is set to PIP
5. Risk Percent Per Trade
Parameter: risk_percent_per_trade
Description: Maximum risk per trade as a percentage of account balance
Range: 0.1 to 100
Example: A value of 1 means risking 1% of account balance per trade
6. Breakeven Settings
Parameters:
use_breakeven: Enables/disables the breakeven featurebreakeven_distance: Number of pips in profit required to activate breakeven
Example: With breakeven_distance = 10, stop loss moves to entry price when position is 10 pips in profit
7. Margin Management
Parameter: use_max_margin
Default: true
Description: Enables/disables automatic lot size adjustment based on available margin
Note: When enabled, reduces position size to fit available margin if necessary
Trading Logic
The EA implements a simple yet effective trading strategy:
- Entry Decision: Randomly selects between Buy and Sell (50/50 probability)
- Position Sizing: Calculates lot size based on:
- Account risk percentage
- Stop loss distance
- Available margin
- Order Placement: Opens position with calculated parameters
- Breakeven Management: Moves stop loss to entry price when profit target is reached
Risk Management
The EA includes several built-in safety features:
- Dynamic Position Sizing: Adjusts lot size based on account risk percentage
- Margin Protection: 10% margin buffer for safety
- Lot Size Validation: Ensures compliance with broker’s minimum/maximum lot sizes
- Breakeven Protection: Secures profits once target is reached
- ATR-Based Stops: Adapts to market volatility when using ATR method
Get the Code
The Random Trader EA is available for free on GitHub. You can download and use it in your projects:
GitHub Repository: Random_Trader_EA
The repository contains:
- Complete source code of the Random Trader EA
- Example usage
- Documentation
- Free to use in your projects
Conclusion
The Random Trader EA serves as an excellent example of proper risk management implementation in MetaTrader 5. While it uses a random entry system, its true value lies in demonstrating:
- Proper position sizing
- Risk management best practices
- Margin handling
- Breakeven implementation
- Universal symbol support
Important Note: Past performance does not guarantee future results. Always use proper risk management and test thoroughly on a demo account before live trading.
For a more complex version of Random Trader with additional features and flexibility, please visit: Random Trader Pro