Automated FX System Trading - How to Generate Signals for Forex Trading
As a currency trader one of the lessons you as a trader must learn in trading the market is how to generate trading signals. A forex signal is just a set of rules which illustrate when to buy or when to sell a forex currency pair.
If you want to come up with an automated forex system Expert Advisor(EA) for trading currencies you as a trader can use rules below to figure out how to specify when trading signals are generated.
Other examples of automated forex system Expert Advisor(EA) Robots & automated forex signals used by online traders can be found in the MQL5 Signals and MQL5.com Expert-Advisor guides on this website.
For example, the simplest system is MA crossover system which generates signals once 2 MAs crossover each other.
- Buy signal - moving averages cross over pointing upwards
- Sell trading signal - moving averages cross over pointing downwards
Automated FX System Trading - Specifying Signals
A trader can generate signals from the above forex system known as moving the average cross over technique system.
Forex Trade System
To confirm the signals generated one will need to create a system and a set of rules for this system.
A forex system is a combination of two or more indicators and a set of written trade rules which are used to generate these trade signals with.
· How to Make a Trading Strategies
Buy signal
- Both Moving Averages(MAs) pointing upwards
- RSI above 50
- Both Stochastics heading upwards
Sell trade signal
- Both Moving Averages(MAs) pointing downwards
- RSI below 50
- Both Stochastics heading downwards
An exit trade signal is derived & generated when the MAs generate an in the opposite trend or RSI gives an in the opposite trend trade signal: A signal that's in the opposite trend market direction.
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