Free Expert Advisor IDNR4

IDRN4

IDNR4 is one of the best pattern created by Laurence A. Connors and Linda Bradford Raschke, two of the most important Americans trader.

The strategy is based on the volatility explosion the generally appears after a short period of price range contraction.

IDNR4 (the acronym of Inside Day Narrow Range 4) is an Inside candle (the high and low of the candle must be contained within the range of the previous candle) and it is the smallest candle in the last four (Narrow range 4).
Day means that the two famous traders use to trade with this pattern on daily charts.

To be honest the IDNR4 pattern works as well on intraday charts, but with smaller profits and risks.

The pattern takes advantage of the movement caused by the volatility compression exactly like a spring that relases a movement as much has been compressed.

idnr4

As shown in the chart, as the pattern IDNR4 is complete, we must insert two stop order:

  1. Long above the maximumm of the IDNR4

  2. Short under the minimum of the IDNR4

The target and the stop loss are calculated in the same way, the are measured based on the height of the pattern, wich is essentially the distance in pips between the maximum and the minimum of the IDNR4 candle.

Stop and Reverse

The IDNR4 Expert Advisor has the Stop and Reverse function activated, so if the Stop Loss is triggered, the EA opens an other position (in the other direction) with the same distance for Stop Loss and Take Profit.

Market Order vs Stop Order

Most brokers do not allow you to enter open orders (limit orders and stop orders) and closing orders (stop loss and take profit) too close the current price, generally the minimum distance allowed is 5 pips (50 points).

You can check this parameter by opening a ticket on your MT4, select open order and reading on the bottom of the ticket the minimum distance.

For this reason the Expert Advisor places a market order when the price breakes the maximum (or minimum) of the IDNR4 instead stop order (that would not be performed if too close to the price).

Specia Parameter

Ther are two parameters less intuituve than the others:

  • ForzaReverse

  • ForzaChiusura

It is possible that when the stop loss is triggered the EA dosen’t open the opposite position (canceling the stop and reverse) because the spread is changed just enough to keep out the operation contrary to the level indicated by the EA.

This is not always a bad thing.

We did some tests and it seems to work better than force open (ForzaReverse = False).

However, we have added the option to ‘force’ the opening of the opposition to the current price with a parameter: ForzaReverse.

For the same reason it is possible (though much less frequently) may open the opposite position without triggering stop loss on the first position. Even for that we have entered a parameter : ForzaChiusura.

ForzaReverse

  • True = The EA will open an opposite position when the first stop loss is triggered

  • False = The EA will open an opposite position only if the price is triggered by the open order (it will not force the order)

ForzaChiusura

  • True = The EA will close the first position if the open order of the ‘reverse’ position is triggered

  • False = The EA will close the first position only if the stop loss level is triggered (not force)

General Parameters

Through the options you can change the parameters

  • Lots (0,1 initial setting)

  • Magic Number (888)

  • Slippage

Important

In order to receive the Expert Advisor you need :

The IDNR4 Expert Advisor works only on the account number just opened and is valid for a 6 month period.

The IDNR4 Expert Advisor is not an investment advice.

We can not be held responsible for any malfunction of the code of the Expert Advisor.

The trading carries a high level of risk and you may incur losses that exceed your initial investment.