Automated trading is fast growing in
popularity as an alternative to trading manually. This blog is to educate
readers about what is an Expert Advisor, who can benefit for automated trading
and even how to create your own forex EA.
What is an Expert
Advisor (EA)?
An Expert Advisor, that is also known
as a Robot or EA. The logic behind automated trading is to allow software that
is pre-programmed with a specific trading strategy to trade on a live forex
account automatically for the owner/user. This allows the forex trader the
freedom to trade the forex markets 24
hours a day without manually monitoring the markets for trading opportunities.
The EA (Expert Advisor) takes hours care of all forex trading operations.
There are many forex expert advisors available on the market
that are either sold independently, used via an Introducer or developed personally
with a dedicated trading strategy. One common factor is that these automated
tools (MT4 EAs) are developed specifically for use on the popular MT4 platform.
Who can Trade Forex
with an EA?
Expert Advisors can be used by traders of all levels, from
beginners to professionals, in fact many institutional forex organisations use
auto trading systems to manage forex accounts. No matter the level of
experience, an Expert Advisor can give a trader a massive trading advantage by
allowing them to trade multiple markets and under different conditions. Each
system is designed to fully manage trading opportunities and all trading
operations including executing orders, using stop loss and take profit levels
and adjusting pending orders and trailing stops.
There are many EAs available that operate using different
settings, however, one common fact in all systems are the fact that each one
operates using a predefined trading strategy and consistently evaluates all trading
parameters at the same time. They operate much more efficiently than any human
as all this data is processed instantly without any emotions that can cause a
human to change or tweak the strategy.
If you are considering buying an Expert Advisor, or trading
via an IB/EA Developer, then make sure that you first study the performance,
operate tests and make sure that there is an open communication with the
developer. Finally, you must fully understand how it works, and variables
needed for successful forex trading and the expected results prior to trading.
How
to Programme Your Automated Trading System (Expert Advisor)
Any profitable forex trading strategy can
be programmed to an Exert Advisor using the MetaTrader 4 programming language
MQL4 and can be released and tested on the internal MT4 strategy tester prior
to live trading.
The MetaTrader 4 platform is the most
popular forex trading platform due to its ability and flexibility to host any
automated forex trading system. There are four critical tools needed to achieve
your goal of developing your very own EA:
- MetaTrader 4 Terminal - where automated trading programmes are managed and executed.
- MetaQuotes Language 4 (MQL4) - the programming language for implementing trading strategies.
- MetaEditor - editor and compiler of Expert Advisors.
- Strategy Tester – an environment to test and optimise your Expert Advisors.
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