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Automated Algorithms - How to Start Automated Trading

Should you, as a trader, be considering the automation of your trading activities through algorithmic execution, you might currently be researching the initial steps for commencing automated trading. The example visualization presented below demonstrates a chart for a currency pair, alongside indications for precisely where an automated system is intended to generate trading signals and the specific nature of those signals it should produce.

Research on How Do You Begin Automated Trade? - What's Automated Trading in the MT4?

FX trading with Automated Algorithms

The manual system described above employs the trading rules outlined below to generate trading signals.

Long Entry

Both Moving averages moving upwards

RSI above 50 Level

Both Stochastics are moving upwards

Short Entry

Both Moving Averages (MAs) are trending downward.

RSI below 50 Level

Both Stochastics are moving downward

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

To create an automated algorithmic trading system, use the outlined rules above as the foundation for coding your strategy.

So, to make a buy signal happen on its own, your algorithm will use this basic code, but you'll need to write it using the platform's language. For instance, you'll need to code it in MQL4, which is basically like C++ code.

Pseudo-code for Automated Trading Algorithms

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

then Signal = Buy:

To automate sell Trade Signal

Pseudo-code for the automated algorithms

A sell signal condition is met if the 7-period Simple Moving Average is below the 5-period Simple Moving Average, the RSI reading is below 50, and the stochastic %D period value is lower than the stochastic %K period value.

Then Signal = Sell:

To set up the system on auto, turn the pseudocode into your platform's code. Or ask forum users, like in MQL4 Code Base, to code it. You could hire someone for the job.

Hire a coder to add red and blue lines for trade signals, like in the screenshot. This helps a lot. The setup shows exactly where signals pop up. You can also check past trades on your chart.

The whole system and its rules are shown below: this version of the strategy has been made easier for computer programming reasons.

Automated Algorithms Systems- Research on How Do I Start Automated Trading?

Learn MQL4 EAs Programming/Coding

When it comes to Automated Trading and automated algorithms - traders need to learn a bit of coding to make their own automated programs or they can have their system coded or programmed by other online traders such as those you find on online communities specific the MQL5.com community.

Next thing to do is to test out extensively using a tool like the MT4 Strategy Tester. This provides an environment where you can test your automated system on any currency pair and on any time frame you choose either using ticks or other parameters which you want your system to use.

Next thing you need to do is to refine your automated algorithm so that it makes a good trading profit in your account. This automated strategy should be tested on a demo practice account.

Following successful testing in a demo trading environment, market participation necessitates securing a VPS, or Virtual Private Server, capable of sustaining your Expert Advisor (EA) operation around the clock. An EA cannot reliably run on a personal desktop computer continuously, and even if it could, the risk of internet connection interruptions remains. This vulnerability underscores the need for traders to obtain a VPS for hosting their EA. The monthly expense for a VPS ranges broadly between $30 and $100, potentially more, contingent upon the precise specifications you, the trader, require. Costs fluctuate based on the server's memory allocation, the required disk space, and the bandwidth your trading activities will consume. Consequently, increased transaction volume dictates a greater demand for bandwidth.

If your automated algorithm is profitable enough to pay for VPS for Expert Advisor(EA) hosting fees then you can host it with a currency broker that provides you with this VPS hosting & then open a account with the online broker where it will trade and place and open trades. Alternatively there are many other companies that provide VPS for EA hosting as a service on its own. As a fx trader once you buy VPS Hosting Service, then the hosting corporate will explain to you how to install MetaTrader 4 of your broker on this VPS & then install your Expert Advisor(EA) & how to login remotely to this VPS server, from your PC Desktop computer and change any settings of your Expert Advisors. The VPS is a specialized computer which runs 24-7 without need to shut it down after every few hours.

On the VPS, your provider will install MetaTrader 4 from your broker. You'll connect to the server remotely using Remote Desktop Protocol, giving you access to the server, software, and EAs. The VPS runs constantly, and you can access it anytime, anywhere.

If your automated trading needs to run all week, a VPS is a solid choice. Your Expert Advisor stays online 24/7. VPS servers run nonstop without shutdowns.

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