Concept
This expert advisor based on a trading system by DC. Bonta (nicknamed “The Shark”). His system is called the Institutional System because it is supposedly used by the banks and big institutions to make a lot of profit without trying to predict which way the currency price is going to move.
This system can only be used when there is a big news release that moves the price strongly in one direction in a short time. I have tried it with a few different U.S. news releases but so far have only found it to be reliable and consistent when used with the NFP (Non-Farm Payroll) that is released on the first Friday of every month.
The basic concept is very simple. It places 2 opposite trades, a Buy and a Sell at market price, exactly 2 minutes before the news release. In the original concept, each trade is set with 25 pips Stop Loss and 45 pips Take Profit. When the news report is released, the price will shoot up or down in one direction. One trade will be stopped out at 25 pips while the remaining one will hit Take Profit at 45 pips. Therefore, your net profit will be 20 pips (45 – 20). 20 pips may not sound like a lot but when you use it with a big Lot size, it can potentially be a lot of profit with minimal effort and time.
In this expert advisor, added some extra optional features that you can test and use to gain additional profit. These are the options and default settings:
Breakeven Level: 30
When the positive trade is in profit by this number of pips, its Stop Loss will be reset to follow the open price so even if the trade reverses direction, you will be stopped out with 0 loss.
CloseHalf Level: 0
When the positive trade is in profit by this number of pips, half of this trade will close. For example, if you use CloseHalf Level: 40 and you entered Lot size as 2, once the trade reaches 40 pips in profit, 1 lot will be closed leaving the remaining 1 lot.
(The default setting for this is 0 which means that I don’t use this feature)
TrailStop Level: 50
When the positive trade is in profit by this number of pips, the Stop Loss will follow the price at a distance of 50 pips and trail it pip by pip.
If you don’t want to use any of these features, just set the number to 0.
Instructions
To install the EA, just copy the file to the Experts folder inside your MT4 installation folder. Restart MT4 and drag the Institutional file from the Expert Advisors section to a EURUSD chart. You can use it on any timeframe but don’t change the timeframe after the EA is attached to the chart.
You will see the following window pop up on your screen:
Lots:
Enter whatever number of lots you want to place. You can use fractional lots if your broker permits it. Make sure you check the amount of margin that you have to open trades so that you don’t put yourself at a high risk.
Take_Profit:
The default is 0 meaning that I don’t have a fixed Take Profit level but I let the other options to take care of closing the trade. If you want to follow the original settings in the Institutional System, use Take_Profit: 45, Stop_Loss: 25 and set the other 3 options to 0.
Stop_Loss:
Try not to change this one. Setting a stop loss that is too low might cause all your trades to hit the Stop Loss before they have a chance to move into profit.
Breakeven_Level, CloseHalf_Level, TrailStop_Level:
These options have been explained in the above Concept section. I have backtested these default settings and they work quite well. If you want to change them, try to backtest them in MT4’s Strategy Tester before using them on your live account.
News_Time:
Enter the exact date and time that the news will be released here. Replace mm with the month and dd with the date. Enter the time as the local time on your computer, NOT your broker’s time as shown in the MT4 platform. The default of 20:30 is the news time of the NFP as of now. When Daylight Savings Time (DST) is over in the U.S., it will have to be changed to 21:30.
For example, if the NFP is going to be released on 7th November 2008, this setting will be: 2008.11.07 21:30
Magic_No:
This is a special number that distinguishes your Institutional trades from other open trades in your trading account. Use a number that is unique from other magic numbers on other EAs running on your account.
The default I use here is 1678 which in Chinese sounds like “Yi Lu Chi Fa”. It means “Prosper all the way”. It’s quite a good auspicious number ;-)
Once you hit the Ok button after entering the settings, you will see a smiling face at the top right hand corner of your screen and the message “Waiting for order time” will be displayed. Please note that the Order time will be 2 mins earlier than the News time you entered in the settings.
If you don’t see a smiling face, make sure that you have checked the “Allow Live Trading” box in the Expert Advisors tab under Tools-> Options and your Expert Advisors button is enabled.
Download Forex NFP EA (Demo Version)
This expert advisor based on a trading system by DC. Bonta (nicknamed “The Shark”). His system is called the Institutional System because it is supposedly used by the banks and big institutions to make a lot of profit without trying to predict which way the currency price is going to move.
This system can only be used when there is a big news release that moves the price strongly in one direction in a short time. I have tried it with a few different U.S. news releases but so far have only found it to be reliable and consistent when used with the NFP (Non-Farm Payroll) that is released on the first Friday of every month.
The basic concept is very simple. It places 2 opposite trades, a Buy and a Sell at market price, exactly 2 minutes before the news release. In the original concept, each trade is set with 25 pips Stop Loss and 45 pips Take Profit. When the news report is released, the price will shoot up or down in one direction. One trade will be stopped out at 25 pips while the remaining one will hit Take Profit at 45 pips. Therefore, your net profit will be 20 pips (45 – 20). 20 pips may not sound like a lot but when you use it with a big Lot size, it can potentially be a lot of profit with minimal effort and time.
In this expert advisor, added some extra optional features that you can test and use to gain additional profit. These are the options and default settings:
Breakeven Level: 30
When the positive trade is in profit by this number of pips, its Stop Loss will be reset to follow the open price so even if the trade reverses direction, you will be stopped out with 0 loss.
CloseHalf Level: 0
When the positive trade is in profit by this number of pips, half of this trade will close. For example, if you use CloseHalf Level: 40 and you entered Lot size as 2, once the trade reaches 40 pips in profit, 1 lot will be closed leaving the remaining 1 lot.
(The default setting for this is 0 which means that I don’t use this feature)
TrailStop Level: 50
When the positive trade is in profit by this number of pips, the Stop Loss will follow the price at a distance of 50 pips and trail it pip by pip.
If you don’t want to use any of these features, just set the number to 0.
Instructions
To install the EA, just copy the file to the Experts folder inside your MT4 installation folder. Restart MT4 and drag the Institutional file from the Expert Advisors section to a EURUSD chart. You can use it on any timeframe but don’t change the timeframe after the EA is attached to the chart.
You will see the following window pop up on your screen:
Lots:
Enter whatever number of lots you want to place. You can use fractional lots if your broker permits it. Make sure you check the amount of margin that you have to open trades so that you don’t put yourself at a high risk.
Take_Profit:
The default is 0 meaning that I don’t have a fixed Take Profit level but I let the other options to take care of closing the trade. If you want to follow the original settings in the Institutional System, use Take_Profit: 45, Stop_Loss: 25 and set the other 3 options to 0.
Stop_Loss:
Try not to change this one. Setting a stop loss that is too low might cause all your trades to hit the Stop Loss before they have a chance to move into profit.
Breakeven_Level, CloseHalf_Level, TrailStop_Level:
These options have been explained in the above Concept section. I have backtested these default settings and they work quite well. If you want to change them, try to backtest them in MT4’s Strategy Tester before using them on your live account.
News_Time:
Enter the exact date and time that the news will be released here. Replace mm with the month and dd with the date. Enter the time as the local time on your computer, NOT your broker’s time as shown in the MT4 platform. The default of 20:30 is the news time of the NFP as of now. When Daylight Savings Time (DST) is over in the U.S., it will have to be changed to 21:30.
For example, if the NFP is going to be released on 7th November 2008, this setting will be: 2008.11.07 21:30
Magic_No:
This is a special number that distinguishes your Institutional trades from other open trades in your trading account. Use a number that is unique from other magic numbers on other EAs running on your account.
The default I use here is 1678 which in Chinese sounds like “Yi Lu Chi Fa”. It means “Prosper all the way”. It’s quite a good auspicious number ;-)
Once you hit the Ok button after entering the settings, you will see a smiling face at the top right hand corner of your screen and the message “Waiting for order time” will be displayed. Please note that the Order time will be 2 mins earlier than the News time you entered in the settings.
If you don’t see a smiling face, make sure that you have checked the “Allow Live Trading” box in the Expert Advisors tab under Tools-> Options and your Expert Advisors button is enabled.
Download Forex NFP EA (Demo Version)
TIME is based on your location time.
ReplyDeleteIf you're from Singapore, then your Singapore's time.
For example, today is the NFP news out at 9.30pm Singapore time, so the TIME for this EA is set to 21:30
Please refer EXACT NFP news time (Singapore Time) at
http://www.forexfactory.com/
And don't forget to change the time format to Singapore Time. Change to GMT+8
Hope this can help ;-)