Trading has become one of the most sought after careers in the world, and as more people get involved, there are new developments that come along with and that make it very interesting to see where trading will develop into as the years go by.
Trading technology is growing by the day and that more and more people are adjusting towards trading technology especially automated trading for their trading experience. That is one of the reasons why the trading industry has seen a rise of automated and algorithmic trading in the past couple of years.
Forex Trading Expert Advisor (MT4) Review
Every trader is seeking faster more aligned trading based on programs that have been coded to represent a trading methodology that could be based on Intermarket analysis, trends, support and resistance, an indicator, volume, relative strength or anything that can offer an edge to a trader in the markets.
The trading system created by an automated trading system can be further improved by adding risk and money management measures that will make it a complete system.
Many expert advisors are simply systems that give the trader alerts on trade opportunities but with an automated system set in a way the risk is pre-defined as in the stop loss level and the percentage risk for every trade is set based on the trading capital then you will have a fully function expert advisor.
Also, it is important to include trade management into the trading system as it will help in aspects like trailing stop loss orders, and partial profit taking.
The most important thing that can be said about expert advisors is that one is able to note when the expert advisor is messing around easily, and thus the bug can be corrected as soon as possible.
The fact, that the expert advisor will only take trades that are based on the system’s requirements there is a very big chance of having consistent results and that is one of the things that almost every trader is looking for.
Mostly the best platform to run the expert advisor on is the MT4 platform because it has a coding language that is easy to use and program with the mql4 and thus the expert advisor mt4 is created.
The creators of the MT4 platform are the forerunners when it comes to expert advisors they not only created a platform that supports the expert advisors but they also created a programming language for the same.
As they have developed in technology and created a new trading platform the MT5 they have also created the mql5 as the programming language so this means the automated system traders will always advance as the company progresses and continues releasing new technology in the future.
Rules to Creating a Consistently Profitable Expert Advisor
Many traders have failed when it comes to expert advisors because they tend to focus more on the area of the expert advisor and fail to focus on some critical points that may be the make or break of the automated strategy.
The best expert advisors mt4 has are created by traders who have had success trading the methodology manually first and journaling all the results and occurrences; this step helps the trader know the mistakes they might encounter as the system is automated.
This kind of system is easy to code and even when running it the bugs are easier to handle than a methodology that has not yet been tested manually and the trader goes straight to automating it.
To code a good expert advisor you should focus on the market conditions the expert advisor will be operated on, if the expert advisor is meant to run in trending environments then run it on trending environments if the markets are ranging then it is better to shut it down since it will cause some damage to your account.
Have an exit plan in place, maybe your range bound expert advisor is caught in a breakout as a trend develops it is important to have such a scenario factored in to avoid taking a hit.
Since the expert advisors work in different market conditions then it is only proper to have a different set of expert advisors, do not use a short-term expert advisor to run on a longer term time frame, it is better to have a shorter term one and a longer term one.
There is another aspect that is quite neglected, funding expert advisors; expert advisors are like workers the best worker is allocated more resources and the one that does not produce as much is given fewer resources, and this is the attitude that every trader should have when it comes to expert advisors.
Also, when the expert advisor is taking a hit reduce the trading frequency, and it is better to reduce the position size too.
Bollinger Bands Expert Advisor (MT4)
There are many expert advisors that are based on a given set of indicators and one of the indicators that are widely used is the Bollinger bands created by John Bollinger in the 1980s, the main aim of the indicator was to measure volatility, and this is one of the things that traders look for when trading the markets.
The Bollinger bands are simply moving average set with deviations above and below the moving average thus creating channel above and below and as price moves between the ranges created it moves to the upper part and thus suggests selling pressure coming through and when it moves to the lower half of the channel it suggests impending buying pressure.
As price gets to the further to the edges of the Bollinger bands, it gives a better sell or buys signal depending which end of the Bollinger band price is at.
When creating a Bollinger bands expert advisor mt4 you can include this reasoning and couple it with a trend indicator like the moving averages to create an expert advisor that will use the volatility aspect of the Bollinger bands and the direction of price using the moving averages to make a sound and well-founded trade setup that the expert advisor can act one whenever the conditions line up.