Automated Signals - How to Generate Signals for Trading
As a trader one of the courses you must learn when it comes to trading the market is how to generate signals. A signal is just a set of rules which illustrate when to buy or when to sell a currency pair.
If you want to develop an automated system for generating automated signals you can use rules below to determine how to specify when trading signals are generated.
Other examples of automated system trading Expert Advisor Robots & automated signals used by traders can be found on MQL5 Signals and MQL5 EA lessons on this website.
For example, the simplest trading system is moving average cross over system which generates signals once two moving averages cross-over each other.
- Buy signal - Moving Averages cross over pointing upwards
- Sell signal - MAs cross-over pointing downward
Automated Signals - Specifying Signals
A trader can generate signals from the above system known as moving average cross over technique system.
FX Trade System
To confirm the signals generated one will need to create a system and a set of rules for this trading system.
A system is a combination of two or more indicators & a set of written rules that are used to generate these signals with.
Automated Signals
From the above trade system a trader can generate automated signals using the trade rules below:
Buy signal
- Both Moving averages pointing upwards
- RSI above 50
- Both Stochastics moving upward
Sell signal
- Both Moving averages pointing downwards
- RSI below 50
- Both Stochastics moving downward
An exit signal gets generated when Moving averages generate an opposite signal or RSI generates an opposite trade signal: A signal that's in opposite direction.
