Trade Forex Trading

Automated Algorithms - How to Start Automated Trading

As a trader if you are looking to automate your trading and trade with automated algorithms, you may be doing some How to Begin automated trading. The example illustration put on display below shows a currency pair chart along with where an automated system is supposed to generate trading signals and which trade signals it should generate.

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

FX trading with Automated Algorithms

The above exemplifications is a manual system that uses the trading rules below to generate trading signals.

Long Entry

Both Moving averages moving upwards

RSI above 50 Level

Both Stochastics going upwards

Short Entry

Both Moving Averages(MAs) moving downwards

RSI below 50 Level

Both Stochastics going downwards

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

To automate this system and come up with an automated algorithm, all you have to do is to use the above rules to write down the code for your automated trade system strategy.

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

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

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

Then Signal = Sell:

To automate the above system all you have to do is to translate the above pseudo-code to your trading platform coding language or alternatively request the traders in forums like MQL4 Code Base forum to translate it for you in to a system or hire a coder to do it for you.

If you as a trader can have a coder to program it with red & blue line showing when trading signals are derived & generated like in above screen shot the better for you, because the system will show where the signals are getting generated and you as a trader can even look at how it would have historically transacted the market in your trading chart.

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

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 as a trader 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 system should be tested on a demo practice account.

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

If your automated algorithm is profitable enough to pay for VPS for Expert Advisor(EA) hosting fees then you as a trader 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 company 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 VPS provider will pre install MetaTrader 4 platform software from your fx 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 & you as a currency trader can use & access it at any time from anywhere.

If your automated algorithms requires to be online throughout the week and then VPS should be a good option, your Expert Advisor(EA) will be online 24 7, VPS machines don't require to shut down & can run continuously 24 7.

More Lessons and Tutorials and Courses:

Forex Malaysia Seminar

Forex Thailand Seminar

Forex Broker