Crypto Bot Trading - How To Get Started

Crypto Trading Bot: WHAT? WHERE? HOW?

Crypto Bot Trading – How To Get Started In 2021

Today I will explain what is a crypto trading bot and how you can use one, where you can trade with the robot and how you can get one. I will explain to you what is the difference if you are trading at a cryptocurrency exchange or with a crypto broker.

So first of all, the crypto trading bot is just an automated system. An automated strategy that will execute the trades for you. So you don’t need to stay in front of the monitor. No need to click the Buy and the Sell button, to watch the charts, analyze the market, follow the fundamental news, and so on.

Crypto bot trading is already quite popular but many people don’t know that it exists at all. And why is that? Because you cannot trade with crypto robots on the cryptocurrency exchanges. So the crypto exchanges are the most popular method that people buy and sell cryptos and exchange cryptos.

Can We Use Crypto Trading Bot For Automated Trading?

In 2020 on the crypto exchanges you cannot trade automatically, there isn’t such an option. Or at least I’m not familiar with one. Probably by the time you’re reading this article, there will be an option to use a crypto trading bot at exchanges. And of course, we will update everyone on our YouTube channel and in our courses. Probably we’ll record some new courses if there are nice methods for automated trading on the cryptocurrency exchanges.

So for the moment in 2020, you cannot do automated trading with trading Robots on the crypto exchanges. And that’s why many people don’t even know it is possible. The fact is that automated trading is possible since 2017. I have recorded some of the first videos out there about automated trading with cryptocurrencies. And trading, especially the Bitcoin with Robots.

Image of Bitcoin Crypto Trading Bot
Trading Bitcoin With Robots

Actually one of the online courses that I have that got most students back in 2017 was the course where I share the Bitcoin crypto trading bot. So it is possible for long enough, it’s just not available on the crypto exchanges. And that’s why most people don’t know that’s even possible. So how is that possible?

Crypto Bot Trading On MetaTrader Platform

Crypto bots can be used with the MetaTrader platform. MetaTrader platform is the most common platform for trading nowadays. It is popular everywhere in Europe, Asia, in the States. The huge Forex brokers offer the MetaTrader platform, it is free. So MetaTrader is a third-party company.

The company is called Meta Quotes. They have developed MetaTrader and what they are doing is they are selling it to the big brokers. That is actually a fantastic business model they did. Because they don’t get money from the traders, us the clients. They get the money from the brokers.

And as far as I know when I visited last year’s one of the biggest Forex expos in Cyprus, аt that time MetaTrader was quite costly for the brokers. I think they charge the brokers about $75,000 a year, which obviously for the big brokers is nothing.

MetaTrader 4 vs MetaTrader 5

The big brokers spent over $100,000 just for Google Ads per day. So imagine how cheap for them the MetaTrader is. Anyway, that’s not the topic of this article. The MetaTrader is a free platform that everyone can use, access easily, download easily.

There are two options available, MetaTrader 4 and MetaTrader 5. The MetaTrader 4 is the older one but I still prefer to use it especially for algorithmic trading. There are a few reasons I will explain in a second.

So on the MetaTrader platform, you can trade with Robots. If the broker offers MetaTrader with Bitcoin or Ethereum, Litecoin, Ripple and etc., you can trade with cryptocurrency expert advisors.

These are usually the four cryptocurrencies that you will find on MetaTrader. And you can trade them with a crypto trading bot. If you have a broker that offers a MetaTrader with automated trading and it offers cryptos you’re good to go with crypto Robot. And this is what I show in my courses. So there are a few different ways you can do it.

Available Options For Robot Trading On MetaTrader

You can buy a crypto trading bot from the market, which is obviously the easiest way. But sometimes it could turn out to be the hardest. Because you never know what is on the other side. You never know what is in the code if you are not a developer. I’m not a developer too. So if I buy a crypto trading bot I will see the performance they promise but I don’t know what is inside the code.

I don’t know when this crypto Robot will be buying and will be selling. So I personally would never go for that method. Especially for Bitcoin because I don’t know what’s the trading strategy behind it. I don’t know when it will sell or when it will buy. I don’t know what percentage of risk there is with this crypto trading bot in my account.

Another option is to hire a developer which is not that difficult to be done. I have done it a lot in the past. I’ve hired many developers to code my strategies for Forex. And it’s quite difficult honestly, these guys take a lot of money, their hourly rate is expensive.

Back in the time when I was doing it, it was in 2013. They were charging about $30 to $40 per hour. And if you want a crypto trading bot with a few entry rules and exit rules you will be paying at least a few hundred dollars. And the thing here is something a few traders know, there is a huge dilemma when you are hiring a developer.

You Need To Have A Profitable Strategy

You need to have a profitable manual strategy so you can order it to the developer. And they will make it for you as a crypto trading bot, they will code, right? For MetaTrader, it’s MQL coding that will work so the crypto Robot can work on MetaTrader. But there is a dilemma here. You need to have a good manual strategy to order the developer to send you back, you pay him he will send you back the code for this crypto trading robot, right?

But the only way to know if a strategy is profitable is if you can perform a backtest with the Robot. So the backtest is basically the option in MetaTrader where you can put the crypto trading bot. And you will see how it performed for the last 3, 4, 5, 10 years for example. Usually, for Bitcoin in 2020, we’re looking for the last 4 years just before 2017 where there was the boom and we don’t really care about what happened before that because Bitcoin was so cheaper compared to where it’s now.

So when you have the crypto trading bot, you can perform a backtest. And you will see exactly how the strategy performed, what profits to get, where it opened and closed trades, and so on. We’ll see the equity line of the Robot.

So this is the dilemma, guys. If you want to order a crypto trading bot to a developer you need a profitable manual strategy. But you don’t know if a strategy is profitable without a trading Robot. So how will you know if a strategy is profitable if you don’t have a trading Robot, you don’t know that, right?

Strategy Builders – The Modern Way To Create A Crypto Trading Bot

So what happens usually is, the traders believe they have a profitable strategy. They order to developers and when they send them back the code, they do the backtest and they will see what losses and they realize that their strategies were not that profitable as they thought. This happens like 95% of the time I can assure you that.

So the other method to create a crypto trading bot is using strategy builders. This is what I use, honestly, it changes the trading because I can build a crypto trading bot without any programming skills. I just put the entry, the exit, the Stop Loss, the Take Profit, I build the trading strategy and I can export it as a crypto Robot. Some of the strategy builders, the software are expensive for most of the traders. They find them expensive and that’s why of course on the market there are different options.

There are cheaper ones, there are more expensive ones. But I want you to understand what is the difference compared to the crypto trading bot that is ready to use. And you can put it on the MetaTrader platform and you can trade with it.

So, what is the strategy builder?

Strategy builder is a program that we use to build ready-to-use trading robots without programming skills.

The Expert Advisor Studio

I don’t need to hire developers anymore. I started using strategy builders about 3 years ago. So I stopped hiring developers. I don’t have a single developer in my team. And this changed my way of trading when I found some great strategy builders.

We have the Expert Advisor Studio, for example. We have it on our website for our students and traders. Some people find it costly but as I said that’s the market. If you want to use good software usually you have to pay for it. It’s like everything else, right? When you’re designing, when you’re editing videos you have to pay for the good product and there are others that are quite cheaper. There is the EA builder, the Strategy Tester, there is Strategy Quant. Forex Strategy Builder Pro is the other one I’m using but it’s a little bit more advanced.

Expert Advisor Studio is the one that I found best about 2 years ago and since this time I’m using it. The good thing actually with EA Studio is that there is a 15-day free trial, which you can test so during this time you can build an unlimited number of crypto trading bots. And there aren’t any obligations, you don’t need to put credit card details or something, you just register for it. During this time you can build many crypto Expert Advisors even if you’re not a developer like me.

Another good thing is that the software has a trading strategy Generator that allows you to import historical data from your broker and it will generate strategies for you. It will generate your crypto trading bot, it will show you different strategies for Robots and you can basically download them and use them. So taking advantage of the free trial I think it’s a great experience for every trader.

Using The Best Strategy Building Software Makes Crypto Bot Trading Profitable

I know many are doing it, a few can afford to buy it which is absolutely understandable. But one more time, when you are trading with bigger amounts and when you are doing that as a full day job, obviously you want to use the best software out there. Because they change the trading, they make it all possible.

And there are so many traders that buy ready-to-use crypto trading Robots from the market and they are expensive as well. Some of them are ready-to-use cryptocurrency bots, which are quite expensive and if you buy a few, you might spend more money than actually buying the software from where you will be able to make Robots for a lifetime. It’s quite interesting to do trading with a crypto bot honestly because you don’t need to be in front of the computer.

Keep In Mind The Spread

And one last thing I want to say is that trading on MetaTrader with the brokers is known as CFD trading. It’s much cheaper compared to if you do it on crypto exchanges. So even if you do it manually, even if you buy and you sell cryptos manually but you’re doing it intraday, or at least I mean if you buy a Bitcoin today and you sell it tomorrow or in a few weeks time.

It will be cheaper for you if you do it with the broker compared to the exchange. Because the fees on the crypto exchanges are huge. If you want to buy one Bitcoin at the moment in December 2020 on Coinbase you will be paying about €300 I think or a little bit above $300 that’s huge, right?

And if you are trading with a broker no matter if it is with a crypto bot or if it is manually, you will be paying about $10 to $25 of spread.

The spread is the difference between the Bid and the Ask price. We buy at the Ask price, at the more expensive price. We sell at the Bid price.

Why Trading For Shorter Or Longer Period Of Time Matters

So it is cheaper to trade on the Forex brokers if you are keeping the trade for a few hours or a few days compared to if you are trading, or actually it’s more of investing, on crypto exchanges. And if you keep the coins for a longer time, like what most people do, then the crypto exchanges will be cheaper because on the brokers there are fees that you pay when you hold your position overnight.

bitcoin trading example during time
Trading For Shorter Or Longer Period Of Time Costs Differently

And if you hold it for a long time then it will get more expensive compared to the exchange. I have recorded another video about that because a few traders understand what’s the difference in the fees.

But one more time if you are buying and selling Bitcoin or any other in a short period of time then you better use the brokers. And if you’re holding it for a long time, then you need the exchanges and keep your coins in a safer place than the crypto wallets.

So with the Robot, with the crypto trading bot, we actually spent less because we are buying and selling quicker. Some of the crypto Robots will buy and sell just in a few hours, they will buy the crypto, they will sell it in a few hours, then they will buy again, and sell. It’s a lot of volume. A lot of trading that happens out there. That’s why it’s cheaper on MetaTrader. And one more time, that’s the only place where we can trade with crypto Robots. And something quite interesting is that on one account you can trade many Robots not just one.

Trading 99 Crypto Bots In 1 Account

Back in 2017, I recorded a course where I show how you can trade 99 Robots in the same trading account. Now in 2020 I have re-recorded it but no one else even shows such trading until the moment which is quite surprising for me.

And when I trade with 99 crypto bots in the account I have the chance to diversify the risk because these are 99 different strategies, 99 different Robots. And they all buy and sell, buy and sell, buy and sell. Definitely, the brokers win a lot of spread from me but crypto bot trading is not possible on the exchange.

So what I show in this course is quite interesting because I put 99 Robots in 1 account. Then I follow the performance and I see which are the top crypto trading Robots for the current market. Because especially the Bitcoin market is so different from man to man. Sometimes it’s very bullish, it goes just up, then it goes sideways for a long time, sometimes it goes down.

Using The Best Trading System

And what I achieve when I trade with 99 Robots is that I see it every moment which are the crypto trading bots that are suitable for the current market. And I grab them and I put them in another account where I will be trading with more volume.

So usually I have 1 account where I test many crypto trading bots and I extract the ones that are suitable for the current market condition and I put them on another account. This is the best option I found and the best system I found so far.

I found it in 2017. In 2020 I used the same system and as I’ve said, I didn’t see any other instructor and trader doing a similar course until the moment. Which is really strange for me. I mean good they didn’t do it but I want more and more people to see this system because it’s really great.

The Crypto Expert Advisor

And to make it possible for everyone who takes the course actually I am including these 99 crypto trading EAs in the course. EA is Expert Advisor which is the actual term for a trading Robot, Robot or bot is just slang. So, the real term is Expert Advisor. So there are many opportunities to trade with crypto. What I personally prefer is using crypto trading Robots.

I don’t say you must go for a crypto bot but I personally feel I’m trading right now while I’m driving, and I’m recording this video. And I’m actually doing it. If I was going to do it manually probably I will be just on the phone and buying and selling. But that’s not professional trading.

I’m talking about professional trading in my videos. So everyone who is on the phone buying and selling cryptos, Forex stocks, anything, that’s not serious. Sorry to say that but I’ve been working for brokers and I know that over 95% to 97% of the people that are trading from the phone are losing money at the end of the day.

Don’t Trade Using Your Phone

You cannot follow the market on the phone, you cannot use crypto trading Robots on the phone, and you cannot really trade from the phone guys, don’t do that. You will lose your money.

example of a person trading from phone
DON’T TRADE FROM YOUR PHONE

What you need is to sit in front of the computer. You need to follow a strategy or you can trade with a robot if you want. I’m talking in general here not just about the crypto trading bots or the Bitcoin Robots.

Don’t trade from the phone. Take it seriously when you do it as a hobby spend one hour in front of your computer and laptop and don’t trade from the phone. The brokers will tell you it’s better because they want you to lose money keep that in mind.

Conclusion

So that’s what I wanted to share with you about the crypto trading Robots, they work on MetaTrader. And you need a regulated broker. Make sure it’s regulated before you fund your trading account. And from there you need to choose how you will get a crypto trading bot. It’s hard to code it by yourself. A lot of people are trying to do that, it will take you months and years.

So for me the best option one more time is to use a trading strategy builder. Or to get a crypto trading bot from a trusted place. Where they will actually show you and explain how the Robot works, how it was created, and what it’s meant to be.

Thank you guys for reading this article. I hope you have found it useful. If you did, please leave a comment below or subscribe to our YouTube channel to get more of our free crypto trading videos. See you in there, cheers.

FB Blue Publisher for MT4 Guide

FX Blue Publisher EA for MT4: Quick Start Guide

What is FX Blue Publisher

In this article, I will show you how to use the FX Blue Publisher for MT4 to identify which are the top-performing trading robots while trading with portfolio EAs.

I continue now from the 99 EAs account where I have already some results. And as I said, it is very hard to follow the results from the account history when we have many different Expert Advisors. And I said that you have 2 options to manage the 99 EAs. You can keep it this way, trading in 1 account.

And at the moment you decide you want to go Live, you put the 99 EAs and you go for the Live Account.

The 2nd option is to keep the 99 EAs on your Demo Account. After that, move the top performers or the EAs that are currently profiting to your Live Account. The reason is every strategy has a profitable period. Every strategy has a losing period.

Amongst these strategies that are trading, some are in the profitable phase, others are in the losing phase.

The strategies
The strategies

What I will show you, is how to extract the EAs that are in their profitable phase using the FX Blue Publisher app. And from there, you can move these EAs to your Live Account. For that purpose, I will use one statistical website called FX Blue.

FX Blue platform
FX Blue platform

I am not doing a promotion of the FX Blue Publisher

It is free to use, its service is about adhering to results. The website is fxblue.com. Don’t take it as a recommendation or something. I’m not connected to the website, not promoting it or anything. Just it has this FX Blue Live feature which allows the traders to follow the results on their accounts.

Actually, we have a lot more statistics and we can see exactly which are the EAs that profit the most. Now, according to accounts synchronization, it depends on what you are using. In other words, if you are using MetaTrader 5, 4, cTrader, there is the FX Blue Publisher EA app, etc.

What I will go for is MT4 account synchronization.

I click on MT4 account synchronization
I click on MT4 account synchronization

I click on register and now I will select the broker server.

Therefore, here we have hundreds, maybe thousands. I don’t know how many they are, we have a lot of servers and brokers. Let me look for HFMarkets. It is SA Demo Server, the one that I have, yet I will need to write down the account number. It is 40669106. Read-only password – here you have 2 options. 1 is if you receive the Read-Only password from your broker or recently actually not all brokers provide the Read-Only password. This is known as similar to the investor password.

A different method of registering

I will show you a different method. I will write down my own password and put down my email as well. I’ll just type it in and click on Register.

I click on Register

Now this will bring me to a page that says, Please verify your email address to get access to the full range of FX Blue services and you’re currently publishing your results using account synchronization. Click on Please verify your email address,

I click on the verification button
I click on the verification button

a small window will pop up where I need to put my name and address and I will click on Send SMS.

I click on Send SMS
I click on Send SMS

What happens is I will receive an email on the phone and I need to reply to that email from my email saying anything as a subject line. Hello. Thank you. And this will verify your email. I just did it from my phone. In addition, got the SMS, I sent an email to the email they sent me, which is confirmation. I click on continue.

FX Blue Publisher Installation

What I will need to do is click on Apps,

I click on Apps
I click on Apps

and I will click on more apps on the bottom.

Then I click on More apps
Then I click on More apps

This is the one that I need, FX Blue Publisher EA for MT4.

FX Blue Publisher EA for MT4
FX Blue Publisher EA for MT4

I will click on that one. It is free. That’s an Expert Advisor that will publish my results. Click on it, it’s just downloading in my downloads folder, double click on it again.

It’s very easy actually to install it and to use it. Therefore if you follow the steps one by one, you will see that it’s nothing hard. And it asks me for which account I want to install. I have quite many accounts and MetaTrader platforms installed. The one that I’m showing right now is the one with Hot Forex.

I click on Install,

I click on Install
I click on Install

and it says the FX Blue Publisher EA for MT4 software has been successfully installed. I will go back to the MetaTrader platform. I right-click and refresh.

FX Blue Publisher

The same thing as installing Expert Advisors on the platform. Here it is – FX Blue Publisher.

I see the FX Blue Publisher
I see the FX Blue Publisher

It is ready to use. Usually, need one more chart to use the FX Blue Publisher. I already opened 99 charts, that’s the maximum with MetaTrader. Clicking on the Chart Window. Undoubtedly, nothing happens, it won’t open another chart.

It’s 99 is the maximum. That’s why I’m using 99 EAs to get the maximum out of it. The FX Blue Publisher needs a chart. Now what that means, is that I will look for one Expert Advisor that has no trades opened at the moment. And how do I recognize it? There was a trade that was opened and now it was closed.

A trade that opened and closed
A trade that opened and closed

All the rest, they had open trades.

There are trades opened and actually, that could be a historical moment that I’m recording right now. We can see something, $20 000 for the Bitcoin was just hit and everyone was waiting for that moment for years. Now it happens whilst I record this lecture.

Trading with Expert Advisors

That’s the great thing when trading with Expert Advisors. It doesn’t really matter what happens on the market, I am trading with Expert Advisors and no matter what I’m doing, I have many Experts trading on my other accounts right now.

I see very nice profits with this demonstrational account and it’s very similar to what I have in my other accounts. So that is why I love trading with Expert Advisors. I don’t need to do anything manually.

Bitcoin is already above the $20 000, something I was waiting for, as I knew that there will be more volatility and nice profits in my accounts. Let me continue what I was explaining. The FX Blue Publisher needs to have a chart and I will just use 1 chart with 1 Expert Advisor that has no trades opened at the moment. And this is the 1 with 737, ending on 737.

How the FX Blue Publisher works

When I run the FX Blue Publisher, I disable this one for a while. And then after that, I put it back. I just want to show you how it works. Double click on the FX Blue Publisher and it asks me if I want to stop the 737 Expert Advisor and execute the FX Blue Publisher, click on Yes.

I click on Yes in the FX Blue Publisher app
I click on Yes

Importantly, I will click on Common and I need to allow the DLL imports.

The Common settings in the FX Blue Publisher app
The Common settings

In addition, in Inputs, I need to put my FX Blue username and the password. I enter the password and on the top, there is the account number 40669106, and pretty much that’s it. Click on OK.

I click on OK in the FX Blue Publisher app
I click on OK

And it says sending data to FX Blue Live, last publication, successful. It just took a few seconds.

It takes a few seconds
It takes a few seconds

Now after we are ready, what I will do is simply go back to the FX Blue and I will click on FX Blue Live and view accounts and I will click on statistics.

The statistics
The statistics

These are the statistics that I have from the account. I can see a few stats that are useful. Weekly return, monthly return. This is based on just 2 days of data that I have.

Statistics

It says 9 days because the account was opened previously, I started with the Experts just 2 days ago and to see the floating profit loss, the balance, the equity rising right now because it is the Bitcoin time breaking the $20 000. The thing is, if I click on Strategy, I can see all of the trades.

I can see all the strategies arranged by the Magic Numbers.

When I click on Strategy
When I click on Strategy

And the result is combined.I know for each Expert Advisor, how many trades were opened, what was the profit, what was the loss. I know the net profit as well. I have many more statistics like profit factor, winners, losers. If I scroll to the right, I see a lot of statistics. Pips, we have average wins, average losses. It’s a lot.

I’m not going to talk about all of the statistics just in the next lecture I will share with you some more of what are the systems that I have been using. I will give you a few different options and you will know how you can select which strategies to extract for your Live Account.

Thanks for watching, please subscribe

You could be testing the 99 EAs on a Demo Account and extract just the top ones. If I click on the net profit twice on the top, I will see the Expert Advisors that brought the most profits. The first one is great. It already did 9 trades and it did most net profit, which is just $6.

This is why we trade with 0.01. If you are trading with 0.1, that would be $66. If you trade with a complete lot, that would be $666 of a profit. And if I scroll down, you will see the total net profit, which is 110. And if I scroll to the right one more time, where were the pips. You can see that we already have nearly 12 000 pips.

The pips
The pips

Finally one more time in Bitcoin.

I’m definitely going to check what’s going on in my other accounts. Maybe I will take some quick profits. That’s a great time for the Bitcoin breaking the 20,000, definitely. And I will bring back the Expert to this chart and I will see you in the next lecture.

Cheers.

Forex Robot Builder

Forex Robot Builder: The Smart Way to Make Your Own Expert Advisor

Forex robot builder software is any program that allows the trader to generate, automate and analyze trading strategies.

Today we are going to compare the two Forex robot builders that we use in the Academy – Expert Advisor Studio and Forex Strategy Builder Professional.

First, we need to mention that both Forex EA builders are designed for traders who have no experience in programming. They can be used by anyone who is interested to use Expert Advisors or the so-called Forex robots.

How to Choose a Forex Robot Builder

I continue with a quick overview of the Expert Advisor Studio, which is the Forex robot builder I am using the most at the moment for the last 2 years and something. And I see with the many reviews I get from the students and the traders that take my courses that EA Studio is very suitable for beginners as well.

Easier to learn compared to Forex Strategy Builder. So if you want to use 2 of them, the EA Studio and the FSB, I would suggest you go first with EA Studio and then go with the FSB Pro Forex robot builder. And it will be easier because personally, I did it the other way around.

It was FSB Pro that I first started with because at this time EA Studio was not yet developed and honestly, it was harder for me to start with it compared to EA Studio.

If you start from scratch, definitely EA Studio Forex robot builder will be easier for you, and the 2 software are different. I’m not going into details about the difference between the 2, but EA Studio has some unique tools that are not available in FSB and at the same time, FSB has some features that are not available in EA Studio. So when I combine them, I find the best results. But that’s personal for me.

Expert Advisor Studio, or EA Studio

EA Studio is a web-based Forex robot builder software. This makes it really easy to use. All you need is a device with an Internet connection – a desktop computer, notebook, tablet, or even a phone. EA Studio helps the trader to create, test, and analyze Forex strategies and export them as Expert Advisors.

And if you want to start with EA Studio, you can check out the free course that we have on the home page. And now I will go through it very quickly. So you’ll have an idea of how we use the Forex robot builder and you will know what to do. There are 15 days free trial as well, which I would suggest you go for because it’s absolutely free and you can export as many Expert Advisors, test them, and see how it’s working. It’s a great experience for every Algo trader.

The Generator

So the first thing we have in this Forex robot builder is the Generator.

The Generator

The Generator is the smart tool behind the Forex robot builder software, which produces strategies based on historical data.

I already talked about historical data. I showed you the Forex historical data app and we have the premium data, which comes from the historical data app automatically.

It is uploaded in EA Studio automatically. So I don’t need to download it. What I do after that is I just make the data work for my broker and I will show you that in the next lecture. So after that, what I do, is I select the symbol, the period. Let’s say I wanna create strategies for EURUSD on M15. 

The Balance chart in EA Studio Forex Robot Builder

And then I will go to strategy properties.

The strategy properties in EA Studio
The strategy properties

Here, we have the option to select how many lots we want to trade. Are we going to use Stop Loss or Take Profit? Are we going to set any criteria for the Generator or not and for how much time will the Forex robot builder be working? This is the working minutes. As well, we can select some preset Indicators, and then we have the acceptance criteria.

So if I uncheck those 2,

I uncheck the 2 boxes

I just want to show you very quickly how the Generator works, immediately it calculates some trading strategies. The speed is really fast. And I already have a Balance chart for a nice strategy.

The Balance chart

All of these trading strategies go into the Collection in the Forex robot builder, and from here I can choose the ones that I want to trade with.

The collection

If I click on the refresh button they will just refresh because all the time the Generator is generating strategies. Now, not all of the strategies look good. I can see what equity lines I have. These are not the strategies that I want to trade. I just wanted to show you that even if I didn’t do anything, the Generator will show me strategies.

Forex Robot Builder Acceptance Criteria & The Equity Line

But we have some criteria and this is actually the Acceptance Criteria. I didn’t use it. And in the next lecture, I will show you how I’m using it.

The Acceptance criteria

But in simple words, this is the place in Forex robot builder, where we can predefine, for example, how much of a minimum net profit we want or how many Count of trades we require as a minimum.

And the Generator will show us strategies only that fulfill these Acceptance Criteria. So I will not see a bunch of strategies here that don’t look good. Even at the moment, I have some decent strategies. For example, this one over here, you can see what a nice equity line it has, it has 2 entry Indicators, 1 exit.

But what I was saying is that when we use the Acceptance Criteria, we filter the strategies even before they were generated and shown in the collection.

Equity line
The equity line

After we have the strategies, you can do a few things. One is you can select the strategies you want to use from performance filters.

You can select the strategies you want to use from performance filters

So basically, from here, I do, one more time, filtering the strategies. Let’s say that I want to see strategies that did a minimum of 2 000 USD as a profit. And just 5 of the strategies did over 2 000 USD of a profit for the period that we have. Or what I can do is I can just go through the strategies and I can select which ones I want to trade, just looking from the equity line.

Over-optimization in EA Studio Forex Robot Builder

And I have selected one of the strategies in the Forex robot builder randomly. I have 3 Entry Indicators and 1 Exit Indicator. This strategy doesn’t use Stop Loss or Take Profit because this is how I selected to run the Generator just for demonstrational purposes in this lecture. From here I have a lot of options. I can optimize the strategy, which means that I will look for better parameters. Let me just click on the start without setting anything.

And you see that I have actually a better strategy with different parameters.

List with trading strategies in EA Studio Forex Robot Builder
I have a better strategy with different parameters

Or in other words, the EA Studio Forex robot builder finds, which are the most appropriate parameters for that strategy. The equity line improved a lot. And this option is also available in MetaTrader. We have Optimizer there. It works much slower and it’s not that reliable as EA Studio.

I would go always for EA Studio if I have to do optimization and if I want to use the last parameters that it found, I will just click on this green edit button. It’s the same strategy but the Indicators have different parameters.

Click on the green edit button

Now, optimizing the strategy is a little bit risky because we can over-optimize it. Or in other words, we’ll just find the best parameters for that period of time, which might not work in the future.

The Normalizer

And in the next lectures, I will talk more about that because that’s super important. Just wanted to let you know what the Optimizer is. We have Normalizer as well, which is a unique tool in EA Studio.

Normalizer tool
The Normalizer

You cannot find it anywhere else at the moment.

Let’s click on start. I don’t know if it will be able to do it right now, but basically, it will try to remove useless Indicators or to reduce the parameters. And right now, I didn’t do any changes. I didn’t set up any different settings. And as I’ve said, I will talk more about it later. The walk forward is a little bit of more advanced tool.

I will just click on start and I will show you what’s the idea. Here we check if the strategy was over-optimized. Basically, how does it work? It divides the whole backtested periods in a few segments. It does optimization for 1 segment and then it tests the strategy for the next segment. After that, it includes the new period, does optimization, again and again, then simulates trading. This is why it’s called Walk Forward.

The robustness tools

Step by step, it checks if the strategy was over-optimized, and because I used the optimizer, it’s very likely that the strategy will be over-optimized. And I will just stop it now because as I said, it’s a more advanced topic and it requires a lot of explanations. I have a lot of free videos about it as well. Then we have the Monte Carlo, Multi Market, and Out of Sample tools, which are robustness tools.

Forex Robot Builder Robustness testing
The robustness tools

This means that these tools are not changing the strategy like the Optimizer, Normalizer, and Walk Forward but they just check if the strategy is robust enough to perform profitably in the future. For example, this strategy that I picked randomly without any settings in the Forex robot builder, one more time is very likely to fail. I will click on START and let’s see how many tests will be validated.

Actually, it’s doing pretty good. 20 out of the 20 are validated.

Validation testing in Forex Robot Builder
All the 20 tests are validated

So what the Monte Carlo did in this case, it’s messed a little bit the historical data, it checked with different spread, slippage. Also, it tried to break the strategy, skipping position entry, and skipping position exit. And as well, we have a few more options. And actually, I use the most the last 2 options.

The Multi Market

I will tell you why a little bit later in the course. But basically, here, the idea is that we don’t want to see many backtests to fail. It does a variety of different backtests with different parameters and different spread. And if the strategy is robust, it just doesn’t fail like what happened right now. So we can depend on that strategy. The Multi Market checks if this strategy is profitable in other markets.

Multi-Market in Expert Advisor Studio
The Multi Market

So I have in the Forex robot builder, for example, BRENTCMDUSD, which obviously is not Forex. I will just switch to some currency pairs and anything. I will just click on start and I will see how the Forex robot builder works for any other market that it chooses. 

Let me make something clear for the Multi Market from the beginning. If the other markets are losing or the strategy loses on the other currency pairs, this doesn’t necessarily mean that it’s a losing strategy.

Because initially, it was created for EURUSD and not for the rest. But if the strategy is profitable on 4 out of the 5 or 3 out of the 5, then this is great. Because this way, you will feel more comfortable using it when you know that it’s a strategy that would work on other currency pairs as well.

The Out of Sample monitor

And then we have the Out of Sample Monitor, which is very useful.

Forex Robot Builder Out of Sample monitor
The Out of Sample monitor

This is a preferable method for many of the traders to test the strategies, and it helps me to avoid Demo testing and it gives a lot of statistics. But what’s the idea of the Out of Sample? It’s a lot of information I’ve brought to you in this lecture.

If you are looking at a Forex robot builder for the first time, but just wanted to give you an idea, what are the different tools, in the next lectures I will go through those in more detail.

But Out of Sample does something very simple. It divides the whole backtested period into 2 zones. The white zone is the In Sample part and the Green Zone is the Out of Sample part.

And in this case, we have 30% Out of Sample. I can change it to 20, for example.

So if we use 20% Out of Sample, that would mean that the Generator will use these 80% to generate strategies, and then it will simulate trading for the last 20%, which will be very similar if we have placed that strategy on a Demo Account. And in this case, the Out of Sample starts from the 4th of February 2020. And until the moment today is the 20th of November.

The Reactor

This is a lot of testing that I would have wasted on a Demo Account to see if the strategy was profitable or not. It was profitable with 601 USD in this case. Basically, this is what it means. This is the Out of Sample in EA Studio Forex robot builder.

And in the next lecture, I will show you how I’m using it. It’s very useful. As well, in the next lecture, I will show you what is the Reactor, because this is the tool that made EA Studio the best software out there.

Reactor Tool in EA Studio Forex Robot Builder
The Reactor

The Reactor does everything I showed to you. Absolutely automatically. I don’t need to go through all of these steps manually anymore.

It wasn’t like that before. But then they created the Reactor from Forex Software company. This is the company that has developed EA Studio. And once we had the Reactor, it was a game-changer. Everything happens automatically.

And in the next lecture, I will show you how I use it and how you can test it as well with the free trial.

Forex Strategy Builder Professional, or FSB Pro

This Forex robot builder needs to be installed on a computer. It allows the trader to build a strategy and see the results in real-time. Using Historical data from the selected broker, the trader can see how the strategy performed during the last months or years. If the result is satisfying, one can export the strategy as Expert Advisor with one click.

Forex Robot builder for traders
Strategy outlook in FSB Pro.

FSB Pro comes with a 15-days free trial as well. During this time you can analyze your own trading strategies or create new ones, and export them as Expert Advisors for algorithmic trading.

Trading Strategies Generator

Forex Strategy Builder Professional generator uses hundreds of indicators, which means that the trader can use custom indicators. There is the option to lock and link indicators.

Suitable For Manual Trading

In Forex Strategy Builder Pro you can build a trading strategy that you are using for manual trading and analyze its performance in detail.

Custom Indicators

If the user is a developer, he can use his own trading indicator in FSB Pro.

Trading Strategies Portfolio

FSB Pro helps the trader to compound strategy performance with different statistics, stagnation period, and real-time performance analysis.

Final Words About Forex Robot Builder

In conclusion, it is hard to conclude which Forex robot builder is better because they are simply different programs. But we can say that EA Studio is more suitable for beginner traders, and FSB Pro for advanced traders.

Also, if you are a fan of using strategies for the Range market, you better choose EA Studio. And if you are more a trend-follower, you can select FSB Pro. As a result, experienced traders prefer to use both programs together.

Thank you, guys, for reading.

What is EA in Forex Trading?

What is EA in Forex trading?

Hello, everyone, today I will be explaining with simple words what is EA in Forex Trading. And I will show you one of my trading accounts where I have different Expert Advisors trading on different assets. If you look at the Navigator, you will see that I have a variety of assets and I have been trading with different Expert Advisors on each chart.


What is EA in Forex trading?
The navigator

I have Expert Advisors and they are all trading at the moment. In this lecture, I would like to talk more about what is EA in Forex trading. For the beginner traders, I will demonstrate how to make a backtest. And simply, you will learn more about these trading Robots.

I guess you already know how to place the Expert Advisor over the chart. And I will place the very same Expert Advisor on a new chart window. It was for EURUSD, so I will right-click over EURUSD and I will select a chart window.

what is EA in Forex trading
I right-click over EURUSD and select Chart Window

And here it is.

The chart window

Now, what I need to do is to go to file, open data folder,

what is EA in Forex trading
Go to File, then Open Data Folder

and then I click MQL4,

what is EA in Forex trading
I click MQL4

and I go to Experts.

I go to Experts

I will drag and drop the Expert Advisor and I will close the folder.

what is EA in Forex trading
I drag and drop the Expert Advisor

I will go to Expert Advisors in the Navigator, I right-click and refresh.

Right-click on Expert Advisors and refresh

The Bollinger Bands

So this is how I will compile this Expert Advisor. It was for EURUSD on M15 and it has the magic number of 51812206. Now, before I drag this Expert Advisor on the trading chart and I show how to make a backtest, I will show you what is the strategy behind this Expert Advisor and these strategies for all Expert Advisors that we use are different.

So they buy on different rules and they sell on different rules. That’s the idea of trading. This is why we traded many Expert Advisors or many trading Robots because we want to buy based on different entry conditions and to close the trades based on different exit conditions.

So, for example, this Expert Advisor uses 2 entry conditions and 1 exit condition. Let me zoom the chart and I will place the Indicators over it. I will go to insert and Indicators. The first Indicator that I will place is the Bollinger Bands.

what is EA in Forex trading
The indicators

For this strategy, we have a period of 35 and we have a deviation of 1.34. I click on OK.

The Bollinger Bands

You will see the indicator displayed on the chart. Here it is.

The Bollinger Bands displayed on the chart

We have 3 lines. And how the Bollinger Bands Indicator works is that when we have volatility on the market, for example, when you see in this period here, the price went down and the Upper Band and the Lower Band went far from the middle line.

what is EA in Forex trading
How the Bollinger Bands display volatility in the market

What is EA in Forex trading with the Accelerator Oscillator inside

When there is no volatility and the price goes just sideways, they come closer together.

So the entry condition that we have with the Bollinger Bands is that we buy with this strategy when we have 1 bar opening above the Lower Band after opening below it. We have 1 bar that opened below the lower Band.

And if the next one opens above the Lower Band, this is our signal to buy. But we have as well confirmation with another Indicator called Accelerator Oscillator. I will just add it from insert Indicators and it’s the first one on the list. It does not have any parameters or levels.

It is displayed below the chart by green and red bars. I click on OK.

The Accelerator Oscillator

You will see them right below the chart.

The red and green bars displayed

And the rule here is that we have the confirmation for the Bollinger Bands to buy if the Accelerator Oscillator crosses the level line downwards.

The confirmation

As you can see it is a lot to follow if we do it manually. When you underestand what is EA in Forex trading you will know that it works much easier.

At the very same time, when we have the signal to buy from the Bollinger Bands, we need to see that the Accelerator Oscillator crosses the level line, which is the 0 line, downward. In this case, with this example right here that I just took randomly, you can see that the Accelerator Oscillator crosses upwards.

The Accelerator Oscillator is if you connect the bars or the ending of the bars, I can say. So in the middle, we have the 0 line. And then if you connect the tops and the bottoms of the green and the red bars, you will have the imaginary line. When it crosses the level line, this is the confirmation.

Let me look for such an example. We have a bar opening above the Lower Band after a bar that opens below the Band.

Or in simple words, this means that the price crosses the Lower Band. And at the same time, the Accelerator Oscillator crossed the 0 line downward, and here there would be an entry. Let me put one vertical line and I will put another line exactly on the opening of that bar.

The Moving Averages

So right here we have the confirmation to buy and this is our entry with this strategy.

The confirmation to buy

The very opposite thing applies if we are selling. We should see a bar that opens above the Upper Band and a bar that opens below the Upper Band, and that would be a sell signal.

What is EA in Forex trading? Its all of that but automatically…let’s keep it going

But at the same time, we will need to see that the Accelerator Oscillator crosses the 0 line upwards, which in this case happened a little bit earlier, 2 bars earlier or 2 candlesticks before the signal from the Bollinger Band. So there is no confirmation.

Now, let’s stick to this example so I will show you what is the exit rule for the strategy and when we enter the trade, this is pretty much half of the work. We need to exit from the trade.

Now, for this strategy, we have a very nice exit condition, which I like a lot, and this is the crossover of the moving averages. If I go to insert indicators and I go to trends, I will see the moving average and I will need to place 2 moving averages. One will be with period of 22.

You can use any color of your choice

I click on OK, and you can see the line with the red color below.

what is EA in Forex trading
The Moving Average displayed by the red line

I will add one more moving average with period of 32, and I will change the color to anything. Let’s make it just some more visual. I will make it blue. I will click on OK, and you see here is the blue line.

The Moving Average displayed by the blue line

Since the blue line is the slower moving average with a bigger period, you can see that it changes its direction later than the red moving average, which has a period of 22. And because their parameters are different, they cross.

The cross is our exit condition. So for the long trade or for the buy, we will exit when the fast moving average, and in this case, it’s the one with a period of 22 or the red one, crosses the slow 32 or the blue one upwards, which comes a little bit later.

If I zoom the chart, you will see that we have our entry and we also have the cross, and the cross is very near to our entry price but the price at this moment is higher.

what is EA in Forex trading
The cross

The cross happened on the candlesticks. On the opening of the next one, we will have our exit.

What is EA in Forex trading:The buy signal

We benefit with this example, about 20 – 19 pips, I think, and something. We enter at the 1.1644, exit is at 1.16638

So about 19 Pips. And something interesting with this strategy is if I zoom out, you will see how the moving averages go. And usually, when the fast moving average crosses the slow moving average, this is a buy signal. But instead of buy, we are taking the profit here because obviously, they will cross when there is an up movement. Anyway, they will not cross. 

And you can see what happens after that. The price goes sideways and then it goes down. So if we enter at that moment and if we don’t take our profit in here, then we might lose. That’s quite interesting with the strategy.

It brings quick profits and as well we have a Stop Loss and Take Profit, which means that when we place the trades in MetaTrader, you can use the one-click trading, which allows you to buy and sell faster when you see the signals, or you can go to Trading, New Order.

Go to Trading, then New Order

Stop Loss and Take Profit

And from here we can enter the price, the different type of order we want to use. If it’s pending, it means that we put the price at which we want to enter and we have the option to put the Stop Loss and the Take Profit. For beginners, the Stop Loss is the level at which we want to stop the loss or in other words, to exit the trade if we are in a loss.

And the Take Profit is the level at which we would like to take our profit or to close the trade if we are on profit.

The order

So, for example, if we enter at 1.1644, we can put a Stop Loss at 1.1625, Take Profit at 1.1680, or anything like that. I’m just giving some numbers randomly.

What is EA in Forex trading if we have so many rules, stop loss and take profit? It is all of that combined into a code.

But for this strategy, we have a Stop Loss of 77 pips and Take Profit of 65 pips. So 77 pips below the entry price is our Stop Loss and 65 pips above the entry price is our Take Profit. Now, I’m not going to put these levels, but what I wanted to show you is 1 regular strategy, I can say, which has 2 entry conditions, 1 exit condition, which is the moving average, but it’s formed by 2 moving averages.

As I’ve said, we have a Take Profit and as well we have a Stop Loss level. We have like 3 Indicators, 4 in this case, the Stop Loss, the Take Profit, and imagine if you have to follow that on 1 chart. You will be able to do it.

Diversify the risk between different strategies

I’m sure you will practice for some time and you will know what you are doing. I am teaching such strategies in my courses, many of the students are applying them. But the hard thing comes when you want to trade many strategies at the same time to get more profits.

You should diversify the risk between different strategies. Because as you know, every strategy has a losing period and a profitable period. You will see that in the next lecture where I will show the backtest of this strategy. But if you are trading just one strategy and you hit on the losing period, that could be a couple of days, a couple of weeks, or even months.

So imagine you are following the trades every day, executing the orders at the exact moment, and you are just losing because you are using this one strategy and it’s in the losing phase. You won’t feel comfortable and you won’t be satisfied with your work.

So the solution is to trade with Expert Advisors because we can trade such strategies automatically. This is what the Expert Advisors are. All of that is executed automatically by the Expert Advisor or in other words, the Expert Advisor is the coded strategy, just what I have described here.

 

 

The Expert Advisors are convenient

Especially the strategies that have many Indicators over the chart, like 3, 4, 5 entry rules, 2, 3 exit rules, it becomes really messy. And at one moment, you will not be sure what you are looking at.

It just gets confusing. Most importantly, we cannot follow the strategies manually all the time. Obviously, we need to rest. We need to sleep, eat, spend time with our family, workout, or whatever you do as a hobby.

Or if you have a full-time job, most probably you won’t be able to trade more than a few hours in the day, which means that you will not have the time to follow the charts and the indicators. 

And this way, we have the chance and the opportunity to trade many strategies similar to that one. And we do it for 24 hours from Monday until Friday. No pause, whatever we do, work, sleep, eat. The Expert Advisors are executing these strategies accurately and we don’t spend time in front of the screen.

Thanks for reading and take care.

trading stratety backtest on MetaTrader

Trading Strategy Backtest: How To Do It Right?

Trading strategy backtest

In this article, I will show you how to place an Expert Advisor on Meta Trader and how to perform a backtest. Hello traders! this is Petko Aleksandrov and today I will demonstrate how to perform properly the Trading strategy backtest on MetaTrader.

The first step after you have the Expert Advisor is to go to File, Open Data Folder,

trading strategy backtest
Go to File then Open Data Folder

MQL4,

MQL4

and Experts.

Experts

Paste the Expert Advisor here and close the folder.

After that, go to the Navigator tab, right-click over Expert Advisors and click on Refresh.

trading strategy backtest
Right-click on Expert Advisors and click Refresh

This will compile the Expert Advisor and you will see it listed below. And if you are using Meta Trader 5 you will need to right-click over the Expert Advisor and go to modify.

Right-click over the EA and click Modify

This will open the MetaEditor from where you can compile the Expert Advisor.

The MetaEditor

Here you can see if there are errors or warnings for this trading strategy backtest. After you have compiled the Expert Advisor, you can drag it over the chart and drop it.

A small menu pops up with the inputs of the Expert Advisor, the parameters of the indicators, and the strategy properties.

trading strategy backtest inputs
The small menu

At the bottom, you have the magic number which allows you to track the performance of the Expert Advisors. This is very useful if you are trading with many Expert Advisors in one account.

Remember to enable the AutoTrading if you want to trade with the EA. But if you do a trading strategy backtest it could be off.

Also, we would suggest you test any Expert Advisor first on a Demo account before placing it on a real account. From the entry lots, you can change the trading quantity that you would like to use, and you can change the Stop Loss and the Take Profit.

And you can change any of the parameters in the indicators. In this case, this Expert Advisor was created for EURUSD and for the M15 chart. So you have to place it on the exact same timeframe, on the exact same currency pair. Click on OK and you will see the smiley face in the right upper corner.

The smiley face

This means that the Expert Advisor is attached to the chart. Don’t forget to enable the AutoTrading before placing the Expert Advisor otherwise you will see a sad face and this shows you that the Expert Advisor is not working.

Now, if you want to do a trading strategy backtest you can right-click over the chart, go to Expert Advisors, and hit on Strategy Tester.

trading strategy backtest
Strategy Tester

You will see a window opening below the chart from where you can select the Expert Advisor you want to backtest, the symbol, the model which gives you the 3 options – Every tick, Control points, and Open prices only.

trading strategy bactest method
Model options

Our suggestion is for you to use Open prices only for trading strategy backtest

Usually, in Meta Trader, Every tick is not a very accurate method for backtesting Expert Advisors since the Meta Trader algorithm for backtesting tick data is not very accurate and it causes a lot of problems for the traders.

For this Expert Advisor and for all Expert Advisors that are created with Expert Advisor Studio, we would suggest you use Open prices only. This is because the Expert Advisor works on the opening of the bar. In other words, the Expert Advisor checks for entry and exit signals on the opening of every bar.

And this is the fastest method which actually turns out to be the most reliable method. Because it simplifies the Expert Advisors and it makes the trading strategy backtest on Meta Trader extremely fast. As well, you have the option to use date.

If you uncheck the box, it means that it will use the complete historical data that is available on the chart.

If you just open a Demo account with any broker, it is a good idea to press the HOME key on your keyboard and hold it.

Press the HOME key on your keyboard to get more data

This will force Meta Trader to load more bars so you can have a longer backtest. On the right side, make sure to choose the right timeframe and the spread accordingly.

Choose your period and spread

Click on Start and you will see how quick is the backtest on Meta Trader.

In Results, you can see all the positions that opened and closed and the final trading strategy backtest result. On Graph, you will see the strategy backtest graph.

The graph

As well, you have Report which shows you some more statistics from this trading strategy backtest.

trading strategy report
Report

In Journal, you will see if there were any errors during the backtest or not.

In this example, there were no errors during the backtest. Keep in mind that the backtest shows the results of this trading strategy for the past period of time which does not guarantee profits in the future.

This is why we would suggest you place this Expert Advisor on a Demo account to see how it performs on the current market conditions. And make sure to test the Expert Advisor until you feel comfortable placing this Expert Advisor for trading on a real account.

The other option to a tradibg strategy backtes is with EA Studio

To give you an idea of how this Expert Advisor works, I will open EA Studio from where it was created. This is a strategy builder that allows the traders to automate their trading strategies with one click because we have the option to export Robots for MetaTrader 4 and for Meta Trader 5.

trading strategy backtest with EA Studio
Export EAs for Meta Trader 4 and Meta Trader 5

This strategy uses the stochastic signal and the rule is – Stochastic line crosses the signal line downward. As an exit rule, we have – The bar opens above lower band after opening below it. As well, we have Take Profit of 20 and Stop Loss of 80.

Don’t be scared that the Take Profit is smaller than the Stop Loss. This is because the balance chart shows profit. And as well, the statistics that we have are very promising, we have a good return to drawdown and we have over 2,500 count of trades that were executed.

And if I click on Report, you will see some more statistics that I have for this trading strategy.

trading strategy backtest results
The report

EA Studio is open for everyone to use it. You can generate your own strategies or you can generate new strategies or you can use the strategy editor from where you can add different indicators as entry and exit rules and you can see how the strategy performs immediately.

EA Studio free trial allows you generate and autoamte strategies

Even if you make a small change, for example, if I lower the Stop Loss to 70 pips, I will see immediately the backtest of this strategy which saves a lot of time testing on a Demo account. It allows the traders to automate their strategies that are only showing nice and stable profit lines.

As well, EA Studio comes with free 15 days trial which you can use to export an unlimited number of Expert Advisors for Meta Trader 4 and for Meta Trader 5.

Thank you for reading. If you struggle to make a trading strategy backtest, you can write in the comments below and we will help you.

Have a great day.

How to Make a Backtest on MetaTrader

Meta Trader is the most popular platform for Algo Trading with EAs

Hello, dear traders, I will show you in this lecture how to make a backtest on the Meta Trader platform. And below you can see that I have the first trade opened on EURJPY just very shortly after I placed the Expert Advisors on Meta Trader.

how to make a backtest
First trade opened on EURJPY

So here you can see the bar opened above the upper band and this time the Force Index was lower than the 0 line and it opened the short trade.

If you’re a beginner trader, it’s important to know that the Expert Advisors do it automatically.

While I was recording the previous lecture for the EA Studio and FSB, showing you how these strategies were created, the Expert Advisor opened the trade. And this is really the big benefit of using Expert Advisors. You can do anything else.

The Expert Advisors follow the market, they follow the strategies, and the indicators and the rules, and they execute the trades.

They place automatically the Stop Loss and the Take Profit. I don’t need to do anything manually once the Expert Advisors are placed on the platform. So how can you backtest the Expert Advisors?

One is with the software I showed you, the EA Studio, and the FSB Pro, you can see a very detailed test. But let me explain to you in a few words what is the backtest.

Historical datais important when we do backtest on MetaTrader

How to make a backtest? We use the historical data which I mentioned in the previous lecture. These are all the bars that we have before that, all the candlesticks, all of that information.

And to be precise, the information is the value we have for each candlestick, the open, the high, the low, and the close, these 4 values, they form the historical data. And all of that information is stored over the chart.

If I press the Home key on my keyboard, I will go back to the beginning. And as I said, when you open a new account with the new broker you will not have a lot of bars.

This is why we have now the Forex Historical Data App which I showed you on our website and you can download many bars from there. Anyway, if not, you will be able just to backtest over small historical data.

What I mean is, if I press the Home key on my keyboard, I go back to the 13th of January. This is just about 1 month and there is no more data. And how do I do the backtest? Right-click over the chart, I go to Expert Advisors, Strategy Tester.

how to make a backtest with a few clicks
Right-click over the chart, go to Expert Advisors, then Strategy Tester

Normally, it will set the symbol automatically the timeframe, just as a model, make sure to use Open prices only,

Use Open prices only as a model

because we said that these strategies work on the opening of the bar.

A few trades are not enough to depend on a strategy

And when I click on Start, there is the graph of the results.

The graph

But this is a very small graph because it made just 27 trades. There is no historical data back in time to see how this strategy performed. And as well, when you’re doing the backtest, you can set the date but if you don’t check it, you will be using the complete period.

Now, here, I don’t have historical data. One of the options to collect historical data is to press the Home key on your keyboard as I said. Let me open 1 symbol that I didn’t do it.

For example, EURJPY, Chart Window. I press the Home key and it loads the data. And if I want to do this for all timeframes, I will need to switch and hold it until it stops moving.

However, still, this has small data as I showed you with the backtest, not enough. So how to make a backtest with more trades?

One thing is you can use our app to download historical data. The second thing is you can collect data. When you leave your Meta Trader opened, with time it will collect the data for you. But this takes normally a couple of months or even years.

Step by step guide to a backtest

Now, let me show you a backtest on another platform where I have more data because I’ve been running this platform for quite a long time. So it was the EURJPY. Right over here I have some indicators. I will use Template, No indicators, so it will be a white background.

I will remove the indicators

Now, what I will do? I will show you step by step how to make the backtest. I need to place the Expert Advisor first. So File, Open Data Folder,

How to make a backtest step by step
Go to File, then Open Data Folder

and I go to MQL4,

Go to MQL4

Experts.

Select Experts

I will place here the Expert Advisor for EURJPY.

how to place Expert Advisor on MetaTrader
I will place the EURJPY Expert Advisor

Close the folder then go to Expert Advisors and click on Refresh to compile this Expert Advisor,

how to make a backtest with EAs
Go to Expert Advisors then click on Refresh

I put it over the chart, click on OK.

How to make a backtest
Drag it over the chart and click on OK

Now, I don’t need to enable the AutoTrading because I don’t want to trade with this Expert Advisor.

I just want to show you how to make a backtest. Expert Advisors, Strategy Tester, and then I will select EURJPY. It is on the M15 chart, Open prices only, I will be using the complete data I have. I click on Start,

Click on Start

and you will see how the graph.

The graph

I have more than 2,000 trades. So that’s a realistic backtest because I have many trades, not just 10 or 20.

How to make a backtest in a visual mode?

And in results, I can see exactly all the trades that happened, where the trade was opened, where it was closed. Actually, over 2,000 orders but this is for open and close. So it’s about over 1,022 or something like that. So this is how we do the backtest in the Meta Trader and there is a visual mode which is very interesting as well.

how to make a backtest in visual mode
Visual mode

You can click on it and it will show you how that behaved. How the strategy did. 

It shows where the trades were opened, where they were closed. And something very interesting, you can notice how it works when the Take Profit is small, the trades open and they hit the Take Profit quite often.

When it’s open and the Take Profit is very close, it hits the Take Profit or it uses the exit condition to exit the trade. So this is how we do the backtest on the Meta Trader platform.

As I said, the historical data is very important. If I go to the EURJPY on M15 and I press the Home key, I have data since 2014 October. Very different.

So the historical data is important when it comes to how to make a backtest but as well for creating these strategies because the generator on the software, on EA Studio, on FSB Pro.

The programs use this historical data to build these strategies, and to generate these strategies, and to find the best combinations between indicators, Stop Loss, Take Profit, and all the rest which makes the strategies profitable.

You can learn how to make a backtest on EA Studio which is much faster with the free trial.

There are much similar software for backtesting, for generating strategies, and I’m following, of course, all of them. But for the current moment, EA Studio and FSB Pro are the top products on the market and this is why we have integrated them on our website so it’s easier for our students and our traders to use them.

You can take advantage of the 15 days trial to create your own strategies, to backtest some of the strategies, and just to get some skills in algorithmic trading which I believe are very useful.

Thank you for reading!

algo trading questions and answers

Algo Trading: 6 Facts You Need to Know

Algo trading is what we are good at!

Hello traders, today we will answer questions regarding algo trading that are very common and that we receive daily.

I have selected the most interesting questions from our students, from our forum, and from the e-mail. And before starting, we want to make it clear that in the forum, as well as in the blog, we now have the Search tab where you can look for the questions.

algo trading in the Forum
The search tab

And you’re very welcome to post new topics. But if you find a topic regarding the question you want to ask, you better write under the same topic so the other students will learn more about the subject. So let’s go now for the questions.

1. “Which is the best algo trading strategy that you use?”

This is probably the most common question that we receive regarding algo trading and strategies. And what I show in my courses is that I don’t use one strategy.

I base the algo trading on many Expert Advisors and trading with many strategies simultaneously on one trading account. This is because this way, I achieve better risk diversification and more stable results.

I really don’t like trading with one strategy because this way, I have the chance to be losing some days.

algo trading on MetaTrader
I trade many strategies on one account

As you know, the market changes all the time and with every single strategy, there are losing periods. It could be a day, a week, or a month. And if you rely on one single strategy, it doesn’t matter manually or for algo trading, you will have days where you will be losing.

So my algo trading strategy is to trade many strategies simultaneously. As I show in my courses, I trade many on a Demo account and I move the best current performers to a live account.

2. “Is it worth it to do algo trading in Python?”

Algo trading in Python has been very famous over the past years. But the thing is, it takes time to become a developer. Not just for Python, but for any other language. So the thing is how you want to invest your time.

Do you want to become a trader and dedicate your complete time on trading? Or do you want to do algo trading with Python, and trading at the same time? But this will be very time-consuming. Becoming a developer is not an easy thing.

Just like trading, you need to spend years and you need to practice because you really cannot be a good trader and developer at the same time.

You better focus on one of the two. Secondly, we don’t hire developers in the Academy. Why? Because we have the strategy builders like EA Studio, FSB, so we don’t really need developers.

Everything happens automatically with the strategy builders.

We save a lot of money by not hiring developers and at the same time, we do things quickly. And everyone from the team, Desi, Marin, Ilan, and the others, use EA Studio very successfully just like the thousands of students we have already. So I would suggest not losing time doing algo trading in Python.

3. “What are the suitable strategies for beginners?”

All the algo trading strategies that come up from EA Studio, I can say they are absolutely suitable for beginner traders.

FSB Pro is a little bit more advanced software. So if you have licenses for both of them, I would suggest you start first with EA Studio and then go for FSB Pro.

And for the beginners, I would advise you simply run the generator of EA Studio and see what are the strategies,

Generator

experiment with them, look at the indicator chart, at the equity chart, run multiple robustness tests like the Monte Carlo, the Multi Market, Walk Forward, and you will see that sometimes even the simplest strategies are profitable. So you really don’t need to go for anything advanced.

4. “Is it possible to trade stocks with EA Studio?”

Absolutely. EA Studio works over the historical data that the traders insert in the app. So if you insert historical data from Meta Trader for stocks, EA Studio will generate strategies for stocks.

If you insert for cryptos, for commodities, you will be able to generate strategies for these assets. There is no limitation.

So if you want to do algo trading stocks, you can do that with EAs that the strategy builder will find for you. Just be careful witht he commissions when trading with the CFD trading. Usually they charge 5-10 dollars per one lot traded. Which is a lot for algo trading stock because we open and close many trades with the robots.

It really doesn’t matter what you will be trading. But I really suggest you start with Forex. At one moment, you will realize that it really doesn’t matter what you are trading.

The Forex is the cheapest way because the spread is the smallest and it is volatile all the time. And we have a huge variety of different currencies that we can trade with.

Variety of currencies you can trade

5. “Which algo trading course should I start with?”

For the beginners, again, you better have a look at the Free Startup algo trading course.

As well, we have a Basic Algorithmic Trading Course where I include 3 ready Expert Advisors and there, I started from scratch showing you how to install the platform, how to choose the broker, what are the charts, candlesticks, everything you need to know before you start testing Expert Advisors or doing algorithmic trading.

basic algo trading course
The Basic Algorithmic Trading Course

Have a look at these 2 courses and you will have a great idea what is algo trading.

6. “What do I expect in the future algo trading courses from Forex Academy?”

From next month, I will be working on a free algo trading course on FSB Pro. The idea that I have about the free course is to explain everything that is not clear from the current course from Mr. Popov.

We have opened the topic in the forum. Actually, it’s one of our students who opened the topic about the FSB Pro. I just changed the topic with ideas. Everyone who has any ideas or if you want to see something special and something particular in the free FSB Pro course, make sure to write under that topic in the forum.

The topic about FSB Pro

And we will do our best to implement everything from the topic to make it really clear how FSB Pro works because it is a little bit more advanced software than EA Studio and it has a lot of features that are not available in EA Studio.

And after the FSB Pro course, we will work really hard to update the current courses. We will have better audio, better video, and fresh examples. Basically, we already have so many courses, over 30, and we realize that pretty much this is enough.

All our algo trading courses have a lifetime license

What we want to improve is the quality and it will be an ongoing process. So all the time we will be updating old courses and, of course, from time to time, like every 3 or 6 months, we will launch a new course. But our target this year is to update all the courses.

And every time a course is updated, you will receive it for free if you have enrolled because as you know, we have a lifetime license to all courses.

Thank you very much for reading!

Cheers.

Best Free Expert Advisor for MT4

Best Free Expert Advisor for MT4 – the secret big players don’t want you to know.

As traders are getting progressively complex, so is the headway of trading stages and finding the best free Expert Advisor for MT4. The issue is that the methodologies the traders utilize are getting increasingly confounded with steps that the progression of trading stages can’t handle.

So what should a trader do to take care of his issues?

Utilizing the best MT4 Expert Advisor inventively could be the answer for a trader’s concern.

To accomplish such an expression, a trader needs to utilize the beautiful open-based element, which is the free Expert Advisor for MT4. This is to tap upon the capability of customizing his trading tool to suit his diagramming needs.

Nowadays we have the Expert Advisor generator which makes things much easier for every trader

Also, why it is so hard to do it without the generator? One needs to acquire the administrations of an independent developer to build up the best Expert Advisor for MT4 or considerably more viably by working up a group of software engineers to build up his customized MT4 Expert Advisor further.

The current MT4 Expert Advisor tooling capacities

As the current MT4 tooling capacities permit a trader to plot outlines yet not trade off them, this is exceptionally wasteful. Therefore traders will lose openings since they can’t be there when the signs show up.

It will be stunning to have graphing tools that can assist traders with getting informed for trade flags adequately and decide to trigger trades promptly without impedance with an inclining line drawn.

MetaTrader trading computers
Computers trading Forex

This will give the trader a visual outline of what his entire trade procedure will be like initially. This is the eventual fate of visual trading. These will occur if just traders grasp the MT4 Expert Advisor highlight to help their diagramming tools quickly.

If you are an active trader in the Forex showcase, Expert Advisors would be no odder to you.

The MT4 has become so mainstream that some wealthy traders and organizations have wound up harvesting extraordinary benefits with its assistance.

Indeed, even wealthy traders have utilized it furthering their potential interest to harvest benefits. Concerning learner Forex traders, this can be an incredible assistance to begin with as systems are given. Keep on perusing on to discover what MT4 is, and what MT4 advisors are.

The MT4, short for Metatrader 4, is an online stage where it helps traders and establishments with the dealings in Forex.

It is like a spot where you can make alters or accumulate data so you can customize your MT4 expert advisor or make changes to existing ones.

This is one of the more mainstream strategies for making automated trading programming. In reality, intermediaries can get their customers to utilize their expert coaches that they have made from that stage.

With MT4 steps, a robot is made without beginning from the starting point. To add on to this, traders who are keen on making their advisors as a productive Forex trading framework can do as such with the presence of the stage. 

MetaQuotes Language 4 (MQL4) is utilized in Expert Advisors, and they are the kind of language that permits you to program in the trading techniques that you know.

Fundamentally, the language allows them to be modified automatically into the trade accounts, whereby trade activities can be overseen promptly and legitimately from the requests from the server of the merchant, or whoever who is customizing the expert advisor.

In any event, pending offers can be set and balanced, just as trailing stops set.

Expert Advisors and the secrets big players don’t want you to know

Would it be that the enormous banks and major budgetary foundations don’t need you to think about automated trading and for what reason do they attempt to delude you into accepting that automated trading doesn’t work? 

Metatrader 4 or MT4 permits anyone with practically no past programming experience to construct and build up their trading robot.

Your MT4 Expert Advisor robot can trade for you twenty-four hours per day, seven days per week, every day of the year. Numerous huge banks use automated trading frameworks somewhat or another.

MT4 Expert Advisor
Expert Advisor robot illustration

Their structures run from completely automatic trading answers for semi-automated ones that handle the execution and following of the trades yet who’s genuine “trigger” is pulled by an individual. 

When a trade has been started, your MT4 Expert Advisor robot can monitor it’s encouraging, move the stop to secure benefits, a “trailing stop,” and handle your cash the executives.

It can close pieces of your situation at set benefit targets and a great deal more. Whatever your trading strategy requires an Expert Advisor can be modified to handle. 

The realities represent themselves. Using a trading robot is a brilliant method to trade the Forex, and that is the reason large banks and significant budgetary establishments are utilizing them. On the off chance that they were not beneficial, do you genuinely figure these monetary goliaths would use them every day? 

What’s stopping you from doing likewise? You shouldn’t be a cultivated designer with long periods of experience. In addition, individuals are ready to manufacture their automated trading frameworks surprisingly fast. 

Forex Trading Made Easy With MetaTrader 

MetaTrader is a free web-based trading program. This is a huge benefit as the client can trade locally established. The presence of MetaTrader has indeed redirected from the usual method of trading. 

A MetaTrader Expert Advisor (EA) is intended for the MetaTrader stage. The client can drag the Forex currencies, and the MetaTrader permits up to 12 sets of coins.

MetaTrader platform
MetaTrader platform

The MetaTrader Expert Advisor meets the necessity of the stage. It trades as secure as could be expected under the circumstances and adaptable with the market changes and patterns.

It doesn’t make a difference if the client has no clue about programming or coding. There are many planned automatic Forex trading framework by programming proficient forex traders.

Individuals new in Foreign Exchange trading will encounter the advantages of having the MetaTrader Expert Advisor.

Everything is automatic. It guarantees benefit as it is available beginning from the opening of the trading until shutting, along these lines, increasing the client’s cash. Its foundation is adaptable and entirely steady.

The client’s procedures can be moved to the duties of the MT4 Expert Advisor if the client has questions with his/her capacities because the MetaTrader Advisor is made with the guidelines and framework dependent on the standards of trading.

Expert Advisor for MT4

Indeed, an indicator varies from an expert instructor. An indicator gives you sign on the pattern in the market. Then again, an Expert Advisor gives you notice on the design just as the move to make.

The Expert Advisor helps you in dynamic.

As you probably are aware, undesirable components effectively influence human feelings, for example, dread, stress, and outrage. Hence, settling on a choice in the midst of touchy has been demonstrated lethal.

Nevertheless, an expert advisor is feeling free and better in dynamic. You may be asking why we utilize an indicator if we can have an expert mentor. On the off chance that you are an accomplished trader, you will need to settle on your own choices.

Moreover, you may have the trading techniques that you are sure of making benefits. However, indicators are just reasonable for transient trading. It is best to utilize an MT Expert Advisor as a guide for extended haul trading.

It takes tolerance, challenging work, and learning to be a piece of the Foreign Exchange world. There is a lot of programming stages to pick. Many have positive audits and offer extraordinary benefits. In any case, there is nothing better to encounter the client itself the item and put it into working.

One ought to likewise know about potential tricks. Therefore, doing due ingenuity before putting away well-deserved cash is an absolute necessity. Whether Meta Trader conveys what it vowed to the clients or not, the thing is, learning and understanding is the key for trading.

Top Forex Robots and the best free Expert Advisor for MT4 

Its quite easy to find the best Advisor when you have the chance to trade many. It is simple to test all of them on a virtual account and find which one is the kicker:

The way the world sees Forex has changed and wonderfully so. Today, there is an entirely different rush of automation that is helping amateurs trade better.

There are demo stages and live stages on which to trade. The robots by and extensive use of the Meta Trader 4 stage, which is the best out of the part.

A large portion of these guide our fortunes and assist us with making boatloads of money, notwithstanding being defensive.

We should look at three Forex Expert Advisor robots. 

Forex autopilot – this one helps trade numerous currencies combines and has an extraordinary stop misfortune utilitarian to ensure against enormous misfortunes.

The product has accomplished more than enough in handling different specialized subtleties of trading. It plays on showcase instability sand news related modifications in the market. 

The autopilot permits short trading edges and puts as much as 150 positions every month with a triumphant rate approaching 80. The thought is to make income for representatives by following every aspect of the market.

It believes pattern lines and is outstanding amongst other programming as far as distinguishing shrouded patterns. Autopilot chips away at the Fibonacci conservation chart to discover stock inversions. 

Forex autopilot offers unconditional promise within 60 days without posing any inquiry. The thought is to cause the investors to feel protected and authentic about the item. 

Forex executioner initially felt that this item was too acceptable and subsequently bound to be a trick. It hushed its faultfinders by speedy establishment post installment, free overhaul forever, unqualified unconditional promise, and extraordinary increases. 

Forex executioner is a top Forex robot, which means to peruse showcase circumstance to come up with the best purchase/sell time. It is, in a general sense, favored with deciding on impeccable exit, and the section focuses on trade.

In other words, this lets the product chalk out when stop misfortunes is set, and stop benefits are profited by. Breaking down rate pip change to show up at the perfect purchasing or selling time is itself very novel. 

A previous bank currency trading advisor is behind the Forex robot and has made a framework that needs some request putting help from the client, even though it proposes that no automation is full automation. There is a combined support from the clients.

Forex Avenger – Now, this one isn’t as discussed as the other two, yet on the off chance that you consider the arrival on venture (ROI), it is around the best. It has confidence in the outright assurance of trader cash. This is the reason the stop misfortunes are excessively traditionalist in contrast with the business standards. 

Advantages of Expert Advisor for MT4

In the previous days, foreign trade trading has been compelled by natural areas and the sun’s situation in the sky. Combined with tons of administrative work, that painted the dismal and genuine image of botched chances because of every one of these factors. 

The new mechanical age presents the cutting-edge money-related trader with 24 by 7 chances to receive rewards paying little heed to area and time. However, the human trader is just ready to work for specific hours of the day, at last watching some Sabbath before having a breakdown successfully.

They act and respond to economic situations dependent on rules set by their traders. 

MT4 Expert Advisor, here and there known as MetaTrader 4 Expert Advisor, permits you to perform automated trading by effectively monitoring the market. They help you to automatically performing routine undertakings dependent on trading procedures or indicators.

Versatile traders do not keep separate from the image as they remain current on monetary market data and investigation. On occasion, you hold various trading accounts. The best free Expert Advisor for MT4 can help you to, at the same time, oversee them in one spot.

The MT4 program empowers you to customize indicators to mirror your trading methodologies and test them out. In addition, when you change them to suit your targets and try well, you would then be able to run them in certain economic situations and ideally observe the advantages move in.

A man trading online

As further motivating force to MT4 Expert Advisor clients, there is a network to contrast and trade or sell systems and other traders. In the course of iron honing iron, you then learn to improve your arrangement of advisors and appreciate the additions of sound budgetary choices.

Different associations support rivalries to spike traders to think of pearls of Expert Advisors. They run without human intercession for a particular length of time to display perseverance to unusual market conduct.

Looking for the best free Expert Advisor for MT4?

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How to Create a Gold Expert Advisor?

Gold Expert Advisor: The power in 2020!

Gold Expert Advisor is the thing every trader looks for in 2020. In this article, I will show you the process of creating Expert Advisors and strategies. No programming or trading experience is needed.

And I will create actually hundreds of strategies and I will show you how I filter them with the Expert Advisor Studio. This is the software that is integrated on our website.

With the EA Studio, you can create not only Gold Expert Advisor but any type of robot, for any trading asset.

You can find it already on many websites. The good thing is there is 15 days free trial which you can use just to test creating a Gold Expert Advisor.

Gold Expert Advisor for trading
EA Studio free trial.

And during this time, you can export as many Expert Advisors as you wish.

The key point here is that we can export strategies with one click as Expert Advisors without any programming skills. So even if you have some manual strategies, you can put here your entry rule. For example, let’s take the alligator indicator.

I will not do it in details but, for example, if the teeth rises and here is the standard inputs, you can see this is a dramatic loss for this strategy.

The strategy shows a dramatic loss.

And if I have the Bollinger bands, the rule the bar opens above upper band after opening below it which was the example strategy, you can see we have already a balance chart. But it’s still losing.

Gold Expert Advisor
The strategy with the Bollinger Bands.

The Stop Loss and Take Profit in the Gold Expert Advisor.

And we can add here the Stop Loss, the Take Profit, entry lot with how much you’d like to trade. For example, here if I add Stop Loss of $99, I will click on accept. And if I add a Take Profit, let’s say of $93 and here is in pips, so with the gold, this is $99 and $93.

And if I change not used to fixed and as well for the Take Profit and I click on accept you will see there is a difference in the balance chart. Let’s change the parameters of the alligator.

For example, I will change the jaws period to 31, the jaws shift I will change it to 15, teeth period as well I will change it to 15, teeth shift I will change it to 3 and then the lips period I will change it to 3, lips shift 1.

And if I click on accept you will see again the strategy changes.

gold expert advisor for algo trading
The strategy changes.

Now, if I change the Bollinger bands as well, you will see again the change in the balance chart. So the period of 20 I will change it to 37 and deviation I will change it to 3.62 and I will click on accept. You can see the strategy is different.

The strategy changes again.

It goes down, then it goes up on a profit. And actually, here I had the teeth rises not the jaws. Sorry guys. I had the teeth rises. And I click on accept and you will see the balance chart.

Gold Expert Avisor
The strategy when we have the Teeth rises,

So this is the strategy that I showed you in the course Top 5 Gold Expert Advisors + 10 EAs.

We can export the strategy as Gold Expert Advisor for Meta Trader 4 and Meta Trader 5.

You can see the balance chart is very nice, it is stable, it actually matches the backtest of the Meta Trader that we did. Just that here it’s in a very small window and more detailed. And here we have actually count of trades – 893.

So we had this strategy executing trades 983 times, not just 30 or 50 which makes the backtest much more reliable. And the thing here is with one click, we can export this strategy as Expert Advisor for Meta Trader 4 and for Meta Trader 5.

So this is why I am using this Strategy Builder and we have implemented it in our website because it helps me and it helps my traders and students to trade automatically with Expert Advisors without programming skills.

So I don’t need to have a developer in the team to develop the strategies. And I can do it, but I have done that. It is very hard to give strategies to someone to automate.

And actually, even if you automate the strategies you don’t know what are the best parameters, you don’t have all the statistics that are here in the Strategy Builder EA Studio which helps a lot the trading and it helps me to improve the strategies. However, I am not going to talk in details about the EA Studio.

Strategy properties in the Gold Expert Advisor.

There are many free videos about it and I have created already many free videos that you can have a look at and learn more about how it works. So now I will generate the strategies. I will delete the strategy that I have created from the collection.

So in the collection, we collect all the strategies that we have created. And I will go to the generator. Simply the generator creates strategies over the historical data that I have selected. In this case, I will use the gold on M15 chart.

Gold Expert Advisor on M15
The Generator.

Then from strategy properties, I can select what entry lot I want to have, what type of Stop Loss to use; trailing, fixed or trailing, I will stick with fixed. And then we have the range for the Stop Loss and the Take Profit, so I’ll go between $10 and $100 for the gold Expert Advisor and the same with the Take Profit.

The strategy properties.

And then we have the generator settings where we set how much time we want the generator to work. I will set it to 300 minutes. And then we have Out of Sample, In Sample. Here, I will choose 20% Out of Sample.

Generator settings.

The Acceptance criteria.

What that means guys, if I click this generator right now without adding the Acceptance criteria, it will generate me many strategies. They will go into the collection. Actually, hundreds are already calculated but only some of those will go to the collection, normally the profitable ones.

And later, I will filter them more with the common Acceptance criteria. Now, what is the idea of using the Out of Sample for those who didn’t watch some of my other courses? We have the whole period where the generator works.

Now, when we use Out of Sample 20%, it means that the generator will generate the strategies only using 80% of the historical data, the white zone. And with the rest 20%, this is the most recent historical data, it will simulate trading and it will perform a backtest for it. So we will see if this strategy performed well during the last few months.

And if I go to more details into that, I will tell you how much time is that. I will go to any of the strategies and I will click on Out of Sample monitor. So here you can see that the white zone, In Sample part, is actually from 17th of August, 2015 to 22nd of February, 2018.

Gold Expert Advisor
The Out of Sample monitor.

The reactor.

And then Out of Sample part is from this date of 22nd of February 2018 till the current moment. So this is more than 1 year. The strategy was tested for the last 1 year and few months until the moment. It is like what would have happened if we had placed the strategy back on the 22nd of February, 2018.

This is really nice because simply we test the strategy with unknown data and not only on the known data that we have exported from the reactor. And now I will stop this generator. I will delete all of these strategies because you can see some of those are very nice strategies with very nice backtest output.

But I want to filter them. I don’t want to have so many strategies because I want to see only the top strategies into my collection. Now, I will go back to generator and I will switch to reactor. So the reactor is generator plus some optimizing tools and robustness tools.

The reactor.

Now I will leave it here same, with the same Stop Loss range and Take Profit range, same entry lot of 0.1. And generator settings, I will use the common Acceptance criteria, as well I will stick with Out of Sample 20%. So the common Acceptance criteria allows me to predefine some rules for the generator.

The Profit factor.

For example, I would like to have minimum backtest quality of 98%, minimum count of trades here I can go to 500. Normally, with the Forex, I stick with a minimum of 300. This is like the very bare minimum that I want to have.

But with the gold and because I have a nice historical data, I want to see minimum 500 count of trades for every strategy. And then I will have the minimum Profit factor of 1.1. And actually, I will increase it to 1.2 for the complete backtest, but pay attention here.

In Sample, I will have 1.1 Profit factor and for the Out of Sample, I will have 1.1.

GOLD EXPERT ADVISOR PROFIT FACTOR
The Acceptance criteria.

So I want to have 1.1 Profit factor in the white zone, in the green zone and for the whole period, I want to have 1.2. This means that in the collection, I will see only the strategies that are profitable during this tested period since 2018 February.

Because I don’t want to see the strategies that failed during this time. There will be such strategies but I really don’t care about them because I don’t want to trade them. I want to trade only the strategies that perform well in the testing period.

In the trading period actually. It is called trading period because it simulates trading. Now, for the people who don’t know what is the Profit factor, this is the ratio of the Net profit vs. the Net loss. Or it shows how much the profit exceeded the loss.

The Monte Carlo.

So now going back to the reactor, I will add as well the Monte Carlo validation. This is one of the robustness tools. I’m not going to talk in details about each one of those but the Monte Carlo, simply said, it tries to break the strategy before we actually test it even on a Demo account. So it performs a variety of tests.

In this case, I will stay with 20 count of tests and I want 80% of those tests to be validated. And if I click on Monte Carlo, you can see the different simulations it runs. It can run simulations for the market variations, for execution problems, strategy variations.

Gold Expert Advisor
The Monte Carlo.

And normally, I test it with randomized indicator parameters and randomized backtest starting bar. Which means that for each strategy, it will run different backtests with different parameters.

If they fail, it means that the strategy was over-optimized with the parameters. And it will run different backtests with different starting bar. And this way we will make sure that whenever we start trading with the strategy, it will still be a robust strategy.

EA Studio has a unique speed.

Now going back to the reactor, I think I am ready to start it. I will click on start and the speed of EA Studio is really unique. And these are actually generated strategies. And those of the strategies that passed the validation for the Acceptance criteria right over here, they will go to the Monte Carlo.

Gold Expert Advisor.
The reactor.

Those of the strategies that pass the Monte Carlo, I will see them into the collection. I don’t see so many strategies actually till the moment I don’t have any.

But this way, I want to filter the better strategies and I want to have at the end good strategies into my collection that have Profit factor of 1.2. For the complete backtest, minimum 500 trades. And for the In Sample and for the Out of Sample, I want to have 1.1 Profit factor.

So I have set the generator to work for 300 minutes which is 5 hours. And normally, I run it even for more, like 8 hours to 10 hours I run it. You can see what strategy passed the validation but failed to pass the Monte Carlo.

Gold Expert Advisor automated process
Generator results.

Feel free to ask if you have any question about EA Studio.

So what I wanted to say is that normally I run it overnight. I leave it working during the night and in the morning I can see the strategies into my collection. So now it will run for 5 hours and after that, I will see the results into my collection and I will continue the video showing you the results.

So if you have any questions about EA Studio, write in our trading Forum. I will make sure to answer you as soon as possible to any questions that you have along the course.

best-forex-ea

Best Forex EA: USDJPY Strategy

Best Forex EA in 2019 was the USDJPY strategy that we have in our courses.

Best Forex EA is what the traders look for. And the only way to do it is by testing many EAs and follow the results.

The best Forex EA 2019 was the USDJPY strategy that we have in our Top 10 USDJPY strategies course. And at the beginning of 2020, I have included that EA in the Top 5 Forex strategies course where I keep the best performers from all courses.

Dear students, in this lecture I will explain how the best Forex EA 2019 in  USDJPY strategy works, what is the execution, and where exactly you need to enter if you are trading it manually. So we said, in the previous blog post that we have the MACD on H1:

Best Forex EA 2019
MACD on H1

and the MACD on M30.

MACD on M30

And then we have the Ichimoku and the Williams Percent Range on M5.

Best Forex EA 2019
The Ichimoku and the Williams Percent Range on M5

We use this M30 and H1 for confirmation but the trades are executed on M5.

And actually, this is for 2 Forex EA strategies from the course, and the rest are on the M15 time frame. Trading on different time frames gives a bigger risk diversification.

With the GBPUSD strategy, I said that we are looking to trade with the direction of the trend, the direction of the higher timeframe on M30 and H1. But on USDJPY strategy, it’s a different case. On USDJPY on H1, the MACD allows us to trade long or to buy when the MACD line is lower than the signal line.

So that is the opposite thing. We can buy when the MACD line is below the signal line. And on M30, we can buy when the MACD line is below the 0 line, which is the line where the MACD becomes negative and positive. Below is the 0 line.

The Zero line in MACD

It’s really the opposite thing. And what is the idea? Simply, with the USDJPY, we are looking to buy on M5 when the price is cheap on the higher timeframes and we are looking to sell when the price is expensive.

The USDJPY strategy that is behind the Best Forex EA 2019

When the MACD is above the signal line, the price gets expensive. We want to sell it when it is expensive and we want to buy it when it is cheap.

So the difference is that the GBPUSD strategy follows the trend, and the USDJPY strategy is more of a range strategy. In other words, more of a strategy that aims to buy, one more time, when the price is cheap and sell when the price is expensive. And you will see how that works. I will arrange the charts so they will be more visual.

Here is the H1 chart, the M30, and the M5 just like I did for the GBPUSD. I will move to the end, I just press the End button on my keyboard to go to the end or to the current price.

Best Forex EA 2019
M5, M30, and H1 charts respectively

At the current moment, I don’t have confirmation to trade because on H1 I have the MACD below the signal line which means that I am allowed to buy. But on M30, the MACD line is above the 0 line.

So these 2 don’t confirm each other. At this moment, I should not be looking at all at M5 because there is no confirmation. What is the entry condition on M5? We are looking to buy when the price crosses the Kijun-sen line, the blue line upwards.

The entry condition on M5

When it crosses upwards we are looking to buy. But we need to have the confirmation that the Williams Percent Range changes its direction upwards at the same time.

The Kijun-sen is the key factor in the Best Forex EA 2019 for the USDJPY strategy

So if the price crosses the Kijun-sen, we need to see that the Williams Percent Range changes its direction upward.

Best Forex EA 2019
The Williams Percent Range changes its direction upward

But as we said, we don’t have the confirmation from M30 because it’s above the 0 line. So this is when we are looking to buy. When we are looking to sell, we need to see the price crossing the Kijun-sen or the blue line downwards and at the same time, we need to see that the Williams Percent Range changes its direction downwards.

These are the 2 rules that need to happen, the 2 events that need to happen at the same time on M5 in order to enter the market. So let’s have a look when we can buy or sell on M5, confirming on M30 and H1. For example, on M30, all that period the MACD line is below the 0 line which means that it allows us to buy.

The MACD line allows the best Forex EA 2019 to sell.

And when the price is above the 0 line, it gives us the confirmation to sell. For example, on the 24th of January, after that long period, we have the MACD above the 0 line which gives confirmation to sell.

Confirmation to sell on M30

You can place lines over the MACD but I prefer it to be over the chart. So the confirmation for MACD starts when the MACD line crosses the 0 line upwards, but for H1, the confirmation to sell starts when the MACD line is above the signal line, until this moment.

Confirmation to sell on H1

So the period that we are allowed to sell on H1 is much longer, this is when the MACD is above the signal line. But on M30, it’s much shorter when the MACD line is above the 0 line.

The confirmation

So here we are not looking at all the signal line, just the MACD. When it’s above the 0 line, we have the confirmation to sell. Now, let’s have a look at what we have on M5.

We said that on M5 we are looking to sell when the price crosses the Kijun-sen downwards and at the same time, we want to see the Williams Percent Range changing its direction downwards. We have confirmation after 10:30 on the 24th. The first cross came but at this moment, the Williams Percent Range is just going downwards.

There is no change in the direction. Then the price goes up and it went above the Kijun-sen, above the blue line, and then it went below on this bar which is a cross. We consider this as a cross because it went above then it went below.

The cross

Even a very small distance, still it’s a cross. Now, on this line, what you see is exactly what we need to have as confirmation. The Williams Percent Range changes its direction downward.

The Stop Loss and Take Profit in the best Forex EA 2019

So if you follow the crosshair, the price is going up, it goes above the blue line. And at this moment, the Williams Percent Range is going up. When the price goes down on the next candle below the blue line, the Williams Percent Range changes its direction. And this is the first entry we can have. I will place a horizontal line as well, exactly when it’s crossing the blue line.

I made it red just because it’s a sell signal.

Best Forex EA 2019
The sell signal

And now for this strategy, what I have is Stop Loss of 70 pips and Take Profit of 80 pips. In the previous lecture, you will get the sheet with the setup. So Stop Loss is 70 pips or 700 points, Take Profit is 80 pips. We place the Stop Loss and the Take Profit so we will see what happened after that. I will change the parameters, entry, 109.58 plus 70 pips.

That would be 110.28.

Stop Loss

I click on OK and it went above on the right spot. And as Take Profit, we said we have 80 pips. So I will place another line. Let’s make this one green since it’s a Take Profit. And as parameters, what I will have, 109.30 minus 80 pips. That would be 108.50.

Take Profit

I’m not going into the details, I just want to share with you how the strategy works.

Taking the profit

The price went a little bit on a negative, then it went to a positive going down. The Take Profit is still far away and the price goes sideways. The price here went towards the Take Profit.

It’s a personal choice if you want to take the profit a little bit earlier or not. If you’re in front of the screen, I would suggest you take the profit if you see that you are getting very close because sometimes you will notice that the price goes towards the Take Profit and then reverses and might hit the Stop Loss. Personally, what I do if I see the price going close to the Take Profit and it has less than 10 pips to reach the Take Profit, I close it and I take the profit.

This is if I’m in front of the screen and if I see it. But the idea of the Take Profit and the Stop Loss is not to touch it. The price went up and then it went down, and it hit right over here the Take Profit.

The Take Profit is hit

So having a Take Profit and the Stop Loss eliminates the emotions.

Don’t involve emotions in your trading

Many times when you enter, you will see the price going against you and people start to feel fear that they will lose and they hurry to close the trade. But there is the Stop Loss and as I said, with these strategies, the Stop Loss and the Take Profit are at these places for a reason based on a lot of statistics and algorithms that I have used to see which are the right levels. So try to avoid the emotions. Personally, when I trade manually, I place the Stop Loss, I place the Take Profit, and I just leave the trade. I don’t look at it.

Otherwise, you will start to feel a lot of emotions. You might fear when the price goes to a loss. Or you might even fear when the price goes to a profit, you will be afraid not to lose your profit. So, for example, if you have $40 but your Take Profit is at 80, people fear that they will lose their profit and they hurry to close the trade. But as seen above, the price goes sideways for a couple of days, and then it hits the Take Profit in this example.

So the idea of Stop Loss and Take Profit is to avoid the emotions. This is the strategy with the Ichimoku and the Williams Percent Range. A very interesting strategy. You will need some time to get used to the indicator if you’re using it for the first time. But with this strategy, we are using just the blue line.

You can download this Best Forex EA 2019 from the Top 5 Forex strategies course. 

Thank you for reading and if you have questions let me know.

Cheers.

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