Trade Forex Trading

Automated Forex Systems Trading - How to Begin Automated Trading

As a trader if you're looking to automate your Forex trading & come up with automated forex systems, you may be doing some How to Begin automated trading. The example below shows currency pair chart along with where an automated trading system is supposed to generate trade signals & which signals it should generate.

Automated Forex - Automated Forex Trader and Automated Software Setup

Automated Forex Systems

The above examples is a manual system that uses the rules below to generate trade signals.

Long Entry

Both Moving averages heading upwards

RSI Indicator above 50 Mark

Both Stochastics going upwards

Both Moving averages moving downwards

RSI Indicator below 50 Mark

Both Stochastics going downwards

These signals in above examples are shown with the red and blue-lines.

To automate the tradingtrade system, all you have to do is to use the above rules to write down the code for your automated forex tradingtrade systems.

So to automate a buy signal, your automated system will use this pseudo code, but you will have to program it using coding language of your software. For Example you'll have to code it in MQL4 programming language, or what is basically C++ programming language.

Pseudo-code

If 7 SMA is greater than 5 SMA & RSI is greater than 50 and stochastic %D period is greater than stochastic %K period:

Then Signal = Buy:

To automate the sell Trade Signal

Pseudo-code

If 7 SMA is less than 5 SMA and RSI is less than 50 and stochastic %D period is less than stochastic %K period:

Then Signal = Sell:

To automate the above strategy all you've to do is to translate above pseudo code to your software programming language or alternatively request traders in forums such as MQ4 Code Base community to translate it for you in to a system or pay a coder to do it for you.

If you can have a coder to program it with red and blue line showing when trade signals are generated like in above screen-shot the better for you, because the system will show where the signals are getting generated & you can even look at how it'd have historically traded the market on your chart.

The complete Forex system along with rules is illustrated below, the above version of this trading strategy has been simplified for programming purposes.

Automated Forex Strategy Examples - Research on How Do I Start Automated Forex Trading?

Learn MQL4 Expert Advisors Programming & Coding

In Automated Trading then traders need to learn a bit of programming to make their own automated forex systems or they can have their system coded or programmed by other online traders such as those you find on online communities specific the MQL5 forum community.

The next thing to carry out is to test thoroughly using a program such as the MetaTrader 4 Simulator. This provides an environment where as a trader you can test your automated trading strategy on any currency pair & on any time frame you select either using ticks or other different parameters you as the trader want your system to use.

The next thing you need to do is to refine your trading system so that it makes a good profit on your account. This automated trading system should be tested on a practice demo trade account.

After you test your automated forex systems on a demo account then to trade the market you need to hire a VPS - Virtual Private Server, that can run your EA 24-7, Expert Advisor cannot run on your desktop computer 24-7 & if it can there may be interruptions on inter-net connection. This is why you need to hire a VPS to host your Expert Advisor on. A VPS costs anything between $30 - $100 dollars per month or even more depending on what are the VPS specifications you as the trader want. The cost will depend on memory of the server, disk space you want and band width which your system will take up when placing trades. So the more the trades the more bandwidth you require.

If your trading system is profitable enough to pay for VPS hosting fees then you can host it with a currency broker that will provide you with this VPS hosting & then open a trading account with the broker where it will trade and place trades. Alternatively there are many other companies that provide VPS for forex EA hosting as a service on its own. As a forex trader once you buy VPS Hosting, then the hosting company will show you how to install MT4 of your broker on this VPS & then install your EA and how to sign in remotely to the VPS server, from your PC Desktop computer & change any settings of your Expert Advisors. The VPS is a specialized type-of computer which runs 24.7 without the need to shut it off after a couple of hours.

On the VPS, your VPS provider will pre install MetaTrader 4 platform software from your online broker, & you'll connect to the server remotely using the Remote Desktop Protocol and that way you'll have access to server, the software & your EAs. VPS will run 24-7 and you can use access it anytime from anywhere.

If your automated forex systems requires to be online throughout the week and then VPS should be a good option, your EA will be online 24-7, VPS machines do not require to shut down and can run continuously 24 7.

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