Would you like to know more about forex EA / robots and how to go about creating your own? This article addresses some of the common questions traders might have about EAs, automated trading systems and how to go about building them.
What is Forex EA / Robot?
A Forex EA / robot, or Expert Advisor, is a software program that can detect trading opportunities and automatically enter and exit trades. Expert Advisors (EA) follow and trade rules-based trading systems.
These automated trading systems are also known as mechanical trading systems, trading robots, or as an automated forex trading robot. The term EA applies specifically to MetaTrader, but similar trading robot software can be used with NinjaTrader, cTrader and other trading platforms.
There are several advantages to using an EA / robot to trade forex and other markets. A forex EA / robot allows a trader to execute trades 24 hours a day on several different markets. EAs can also respond and execute trades faster than people and make unemotional trading decisions.
How does a Forex EA / Robot Work?
Forex EA / robots use software to monitor live market data and automatically generate trade signals. The robot uses a set of algorithms to convert live price and volume data into indicators, and applies trading rules and filters to them to generate trade signals.
A forex EA / robot is really just a set of rules and condition that has been converted into computer code or algorithm. The algorithm continuously converts market data into a set of outputs which are then compared to the required conditions. When all outputs meet the required conditions, a trade is triggered.
When the forex EA / robot triggers a trade, and order is instantly sent to the market. The algorithm also determines criteria like position size, and how and when the trade will be exited. The forex robot then monitors and eventually exits the trade.
Who is a Forex Programmer?
Forex programmer is software developer with experience building trading systems and knowledge of specific trading platforms and their native programming languages.
A good forex programmer needs three key skills.
Firstly, the forex programmer will need a comprehensive understanding of the trading platform the forex robot will run on. This could be MetaTrader 4/5, cTrader, NinjaTrader, or another platform. The robot will only be able to get take full advantage of the platform if the programmer knows all its capabilities and limitations.
Secondly, a forex EA programmer needs to know the platforms native programming language inside and out. This will ensure that the code runs as efficiently as possible.
Finally, a forex EA programmer must understand how trading systems work and any problems that may arise. These include possible logic flaws, common pitfalls and the types of bugs that can impact performance.
Why Hire Forex Programmers?
If you want to create a forex robot or EA, there are several reasons to hire an expert forex programmer rather than writing the code yourself. Professional forex programmers will ensure that a trading system runs optimally and gets the most out of the trading platform’s features.
Forex EA programmers also understand what makes a good trading system and how to eliminate some of a system’s weaknesses. Professional forex programmers have already experienced the learning curve that system development involves. This means they will have already encountered many of the challenges that may come up.
A professional forex EA programmer will be more likely to spot logic flaws in your system and the types of bugs that may arise. For this reason, the cost of hiring a forex programmer can pay off in the long run.
How to Make Your Own Forex EA / Robot?
If you decide to create your own forex EA / robot, you can follow these step to make sure you don’t leave anything out.
Step 1: Start with your observations about price movements
If you spend a lot of time watching the market you will probably identify repeating patterns. You can also do simple back tests to identify patterns that you can exploit.
Step 2: Identify technical indicators or tools that highlight these price movements
Your trading system will need indicators or price levels that alert it to opportunities and filter out the signals to avoid. You will also need indicators or price levels that will be used to exit trades.
Step 3: Write down a set of detailed rules that describe the way trade signals will be generated and managed
If you are going to use forex programming services, this is a very important step. You need to create a set of written, unambiguous instructions that describe your trading system. The more detail you include, the better.
Step 4: Find and hire a forex programmer to build your EA / robot
Now you will need to find a forex programmer to turn your ideas and instructions into code that the platform understands. Ensure that the forex programmer has the necessary skills, and ideally that they have created forex robots that are similar to the one you are creating. It’s also important to make sure they understand exactly what you want the robot to do.
Step 5: Back test, paper trade and optimize the forex robot
When the forex EA programming is complete, you will need to test it and optimize the parameters. This should be done on historical data first, and then using live data and a demo account. It’s important to take your time to ensure that the robot is actually profitable and performs as expected under a range of market conditions. You may also need to apply filters to determine when the robot should or should not be turned on.
Step 6: Move the forex EA robot to live trading once it has been thoroughly tested and is profitable
Only when the forex EA / robot has been thoroughly tested should it be used to trade with real capital. However, its performance should still be carefully monitored to ensure it is performing as expected.
What We Do
For our Customers all over the world we provide consulting, programming and support services to develop the most stable, reliable and efficient trading software for the most popular trading platforms, such as MetaTrader, NinjaTrader and cTrader/cAlgo.
Using principles of good code, paying attention to any particular qualities of each of the platform, on behalf of our Customers and in accordance with provided specifications, we develop or perform:
- Expert Advisors (EA) and Custom Indicators for MetaTrader 4 using MQL4 and custom DLLs;
- Expert Advisors (EA) and Custom Indicators for MetaTrader 5 (both netting and hedge mode) using MQL5;
- Automated Trading Strategies and Custom Indicators for NinjaTrader 7/8 using C# and NinjaScript 7/8 ;
- Trading Bots and Custom Indicators for cAlgo (as a cTrader module) using C#;
- Conversions of all types either between different versions of one platform (NinjaTrader 7 -> NinjaTrader 8, MetaTrader 4 -> MetaTrader 5) or between different platforms (MetaTrader -> NinjaTrader).
Make a request for a free consultation with our team of professional forex programmers and find out the cost and terms of developing your project.