Robot trading Forex – the inelegant way to trade nowadays.
Forex robot trading is what I will talk about in this lecture.
Hello, dear traders, this is Petko Aleksandrov and I will explain what exactly is robot trading on the Forex market.
And for the very newbie traders, who have no idea of algorithmic trading, I will show you very systematically what is EA robot trading in Forex.
How we are using them in EA Forex Academy and how useful it could be. Because it saves a lot of time and resources when it comes to staying in front of the computer the whole day to follow any strategy on our trading screen.
EA Forex meaning and application:
- EA Forex stands for Expert Advisor on the Forex market
- Expert Advisor is the trading Robot that a trader uses
- Forex is the biggest market in the world
- EA Forex meaning that one trades with Robots on the Forex market
So here I have the USDJPY chart opened on M5 and you see I have many trades opened. Now let’s say I will have an example strategy for the USDJPY and I will have entry condition for example MACD line rises on the higher time on M30. As well I would like to have MACD line is higher than the signal line on H1.
Building the strategy on the chart?
I will need to open on M30 one indicator MACD, right? I will go to Insert, Indicators, Custom and I go to MACD and I will use just standard inputs of 12;26;9 and I will click on OK. And you will see here is the MACD indicator.
So I have the indicator on M30 and if I switch the timeframe you will see that it remains on H1 as well. And actually, it will be on all timeframes.
What we said is that on M30 we would like to have the entry condition MACD line rises. And the MACD line is the line that connects the bars on the MACD, OK? The red line is the signal line:
And in some platforms, you will see it like two lines MACD with some bars as well which are normally the difference between the MACD and the signal line.
But here on Metatrader, we see the signal line, which is the red line. And then we have the MACD which is the line connecting the bars. So here one of the entry conditions is we want to have M30 MACD line rises. So whenever it is rising on M30 it allows us to enter on M5, okay? And at the same time, we have MACD line is higher than the signal line on H1.
This is all the time when the MACD line is higher than the red line.
And when it’s below we don’t have the permission to enter. So when these two rules are true we can enter, okay? So these are the filters that we have on M30 and H1. Please, follow carefully as you will see why Robot trading Forex is needed in more complicated strategies.
What we have on M5 is MACD line changes its direction upward. Whenever the MACD line changes its direction upward meaning that we need to have one bar with bigger value than the previous one. Then we will have a change. So one is here and then we have one over here and then we have one over here.
So all of these changes give us an entry signal. And one more thing on M5 we need to have a fast moving average is lower than the slow moving average.
I will go to insert, indicators, trend and I go to moving average. One of the moving averages will be with a period of 100 and here MA Method I will choose simple.
It’s a simple moving average
And I will stick with the red color. So you can see and now I have here the moving average when I put the mouse on it you can see exactly the value of the moving average. So this is a 100 moving average:
And then I will go to insert, indicators, trend and I will go to moving average.
I will place a faster moving average period of 50 and I will choose another color to make the difference I’ll just choose a blue color and I will click on OK. With Robot trading Forex, you will now need to pay attention to the chart.
Alright, the moving averages, these are an average value for the last X number of bars. In this case, we have 50 and 100 and the calculation is very simple over here. If we have 50 this means that it takes the closing value of the last 50 bars and it summarizes it after that it divides it by 50.
And this way we receive a smooth line showing the direction of the price. So the smaller number we have we call this to be a faster moving average because it will go faster, closer to the price, okay? As you see the 50 line is getting closer to the price when the price felt over here and then the 100 moving average is a little bit slower when it is going down towards the price, okay?
Here we have a fast-moving average is lower than the slow moving average.
This is the period when we have the confirmation to enter the market on M5 charts. So one more time
the entry conditions are:
What are the entry conditions for the MACD strategy?
- MACD line rises on M30.
- On H1 we have MACD line is higher than the signal line
- On the default chart on M5 we have MACD line changes its direction upwards plus fast moving average is lower than the slow moving average.
And this strategy as well has exit condition such as stop-loss equals to 50 and take profit equals to 100, okay?
So once the trade is open it will have Stop Loss of 50 pips and Take Profit of 100 pips.
The strategy has one more exit condition.
Which says envelopes and this is exit long at a lower band. So it’s another indicator that I should place over the chart. And you see if I do this manually it will be really hard to follow everything, right? But with the Robot trading Forex, you will!
I will need to look at H1 chart I need to look at M30 chart and I need to look at a couple of things on M5 chart. And being at the end at the current price means that I will need to stay in front of the computer a long time or at least I need to wait to see two of the confirmations.
Actually, first you will need to look at H1 and if you have the confirmation there you will go to M30. And if you see confirmation there as well you will need to go back to M5 and then wait for all the confirmations here in order to open the trade. So it’s like you can spend a couple of days watching the chart and it’s very possible that you will miss the entry, right?
Because you will be away from the computer even you wait a couple of hours or you are actually standing up for a cup of coffee or to take lunch. And you’ll miss the trade you will be late.
Here comes the robot trading Forex very useful.
All of these entry and exit conditions they could be placed in robots.
So it will automatically follow the H1 chart, it will follow the M30 chart, and it will follow all the entry conditions on M5. And once the trade is opened it’ll actually follow when the exit condition is there. It will place the stop loss and take profit and basically, you really don’t need to do anything except placing the Expert Advisor over the chart.
And this is the name of the code for the robot trading Forex. If I go here on the navigator of the left side you will see that I have currently here in this account ten Expert Advisors.
So these are ten robot trading codes that I have. And on this chart, that I’m just showing at the moment, I have such a robot trading Forex but it’s for another strategy. And the strategy that I have described is with 0 0 4 at the end. It’s from one of the recent courses that I have launched: “The top ten USDJPY Expert Advisors”.
And if I go to this Expert Advisor you will see that if I right-click over the chart and I go to Expert Advisors and I go to properties that here is exactly the strategy that I have described.
What are the parameters for the MACD robot?
- Stop Loss and Take Profit,
- two MACD lines the third MACD.
- envelopes, the fast and slow moving average.
And the other thing is that I really don’t need to place the indicators over the chart.
It doesn’t matter that I have placed these indicators on another robot trading chart.
I just wanted to make it clear for you.
But here I have this Expert Advisor, this robot trading Forex and it trades automatically. You can see here it took a great trade it opened over here and it closed over here. So this was a nice profit that I had with this trade. So by using robot trading Forex, I am able to trade many robots in one trading account. Which is absolutely impossible to do manually so many strategies like ten strategies having in one trading account trading simultaneously.
What you will need to do if you want to do it manually?
You will need to click around the charts and put so many indicators over the chart. It will be a real headache and you will miss so many entries. Which will actually distract your trading and will not show proper results.
How is that possible?
I do this with the Forex Strategy Builder Professional. This is one of the top strategy builders nowadays. So you see here I have all the entry conditions. If I want I can change any of the parameters, I can add another opening logic condition to make the entry stronger if I wish to, or to place another exit condition.
I can change the stop-loss, the take profit, and I see the balance line for this strategy starting if you look down here on the blue bar you can see this is from 2014 till the moment. I have a very good stable equity chart. This proves to me that this strategy is actually profitable. And the Forex Strategy Builder Professional is a very nice tool when you don’t have programming skills. Because you can export the Export Advisor with one click, ok?
So you go to save as Expert Advisor and you can save it for Metatrader4 or Metatrader5. You don’t need to hire a developer to automate the strategy for you, you can easily export it from over here. Once it’s exported I place it on the Metatrader.
And how I do that?
I go to file, open, data folder then I go to MQL 4 and I go to the Expert. So here are the experts and if I click on the one with 0 0 4 you will see the actual code of the robot trading Forex Expert Advisor. So here in the beginning normally we have the indicators, the parameters and below we have all the conditions. This is quite a long code:
If I go down you will see this is about 6700 nearly 8000 lines. And if you need to code this it will take you a long time and if you hire a developer it will take a lot of money as well. So with the Forex Strategy Builder Professional we can automate any Expert Advisor and we do robot trading Forex much easily.
So this is about the robot trading Forex – simply this is a code that stands behind any strategy we want to trade. And it gives us the opportunity to place many robot trading Forex Expert Advisors in one account. This way we diversify the risk and this way we achieve better results.
Also, if we trade with many strategies simultaneously we cannot follow it all manually. But we Robot trading Forex, we can trade up to 99 strategies into one account in Meta Trader. Something that you will need about 20-30 traders to do this manually, and tons of money to developers if you code this. We have just made is simpler and easier…
Thank you very much for reading and I wish you always to enjoy trading!
If you have any questions you can always write in our Forum.
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EA stands for Expert Advisor. That is an automated strategy for trading. Forex is the biggest market in the works where the currency rate is determined. So EA Forex means that one is trading on the Forex market with robots.
EA in MT4 is an Expert Advisor (trading robot) that is used in the MetaTrader 4 platform. That is the most common and free platform for algorithmic trading.
The robots are automated versions of the strategies. This way the traders avoid the emotions while trading. If the strategy is profitable, the EA will be as well.
When you have the mql source file ready, you need to go to FIle->Open Data Folder->MQL4-> Experts and paste the file. Click refresh on Expert Advisors in the Navigator tab and you will see the Expert. Drag over the chart and click on OK.