Automated Trading / Expert Advisors (EAs) for MT4
One of the most critical aspects of your trade execution is the trading platform you use to conduct your online Forex trading.
The ability to make informed decisions and finish profitable deals in the turbulent Forex markets depends on having a trading platform that offers a wide range of technical tools, an intuitive user interface, and quick execution.
For many years now, MetaTrader 4 has been the industry standard because of its ability to provide all of the most necessary software capabilities. Expert advisers, which may be used by MT4 traders, are a particularly valuable feature.
MT4’s expert advisors are examined in this post, as well as the best ways to use this feature to your benefit.
Introduction to MetaTrader4
MetaTrader 4, or MT4, is the principal trading platform used by online retail foreign currency speculators. In 2005, MetaQuotes built and released the platform.
The program is licensed for usage by foreign exchange brokers. It’s a combination of client and server software.
For placing orders, viewing streaming prices and charts, and managing their accounts, traders log into the broker’s server through the broker’s client software.
MT4 has been a popular alternative for traders because of its ability to allow users to build their own trading scripts and robots.
Brokers frequently set up MT4 as a stand-alone system and manually manage their positions within it. If you’re a third-party developer, though, you can design software that automatically hedges your assets.
How trades are executed on MT4
In MetaTrader, there are two types of trading orders: pending orders and market orders. The order will be executed as a pending order if the stock price increases above a defined threshold.
However, there are four ways to carry out market orders: There is no need to wait for a response or wait for a market or an exchange. The price stated on the platform will be used for the order if Instant execution is used.
It is possible to ensure that the order will be finished at a specific cost by using this approach. One downside however is that in times of high volatility, it’s possible that a great trading opportunity will go missed.
To counteract this, request execution mode allows traders to execute Market orders by first asking for price quotes and then using those quotes to decide whether or not to purchase or sell.
In a matter of seconds, users can determine whether or not the price they’ve just received is worth trading. As such, a solution like this offers price certainty as well as execution assurance.
Even if the broker’s pricing differs from the one provided on the platform, orders will be executed at the broker’s price while using Market execution. The benefit of trading in this mode is that requotes are avoided. Prices can fluctuate significantly, however.
Finally, orders are processed by external facilities in Exchange execution mode (the exchange). The depth of the market dictates the terms of the transaction.
Overview of automated trading
Trading Expert Advisors (EAs), which have recently become quite popular among Forex traders, is yet another tool available to MetaTrader 4 users.
Traders that use robotic trading systems, also known as algorithmic trading, automated trading, or system trading, can program a computer to execute certain rules for entering and exiting trades.
You can use a set of rules to enter, exit, and manage your money automatically if you’re a trader or investor.
When certain criteria are met, strategy automation removes a lot of the emotion from the trading process by placing trades for you.
Examples of trade entry and exit rules include a straightforward technique that only requires a basic knowledge of the programming language used by the trader’s trading platform and a moving average crossover. They can also be created by a knowledgeable programmer.
Using a direct access broker’s software and writing any custom rules in that platform’s proprietary language is the only way to implement an automated trading system. Fortunately, MT4 has this capability.
Advantages of employing EAs
They support a wide array of trading strategies
Automated trading systems allow for the use of many accounts and a wide variety of trading strategies. In the event of a failing investment, this can help to spread the risk.
In milliseconds, an EA can accomplish what a highly competent human would take days or even weeks to accomplish. Computers can search for trading opportunities in a number of marketplaces, place orders, and maintain track of current transactions.
Entry speed is automatically improved
Automated trading systems can generate orders as soon as trade criteria are met because EAs react quickly to market conditions. By entering or quitting the market at the correct time, the outcome of a deal can be considerably improved.
As soon as a position is opened, all additional orders, including stop losses and profit targets, are immediately generated.
In today’s unpredictable markets, having a transaction hit the profit objective before orders can be submitted might be discouraging, but the use of an automated trading system prevents this.
EAs allow you more time outside of trading
Using an EA that has been properly configured eliminates the need for constant market monitoring. In the case of an EA, traders can set their own priority for their trades.
Even if customers rely on the EA to start positions for them, they have the option of monitoring their total profit or loss while just receiving trade notifications from the EA.
Robot trading bars your own risky trading behaviours
Emotions can have an impact on your overall profits. To avoid acknowledging a loss, you may hold on to a losing deal longer than necessary, or you may rush into a dangerous trade following a big win since you’re high on adrenaline.
An algorithm can only perceive the marketplace in terms of the available data, therefore your decision-making will be more objective.
EAs provide for more flexibility in your trading
A wide range of elements, such as price swings, economic announcements, technical indicators or even your current available balance can be taken into account by your EA when trading on any market supported by MT4.
Due to their ability to develop complicated algorithms that monitor many markets, EAs are a powerful trading tool.
EAs allow you to test numerous strategies safely
Making a trading plan and putting your faith in it are just the first steps; trusting it with your money is a much bigger undertaking. It is for this reason that most traders do back testing before implementing their EAs in the real world.
Backtesting is the process of comparing the results of your strategy to past data. Preventing costly mistakes is easier when you can recognize them early on.
You may easily adapt an MT4 EA to meet your specific trading requirements. To a significant measure, the popularity of EAs as an automated trading instrument can be due to their ease of use.
What to know before choosing an Expert Advisor
For traders, MetaTrader Market provides the most extensive assortment of free and paid Expert Advisors, indicators, financial magazines, and books available anywhere online.
All product information, including photographs and user reviews, may be found using the Market’s various search techniques, which are categorized by category and organized by product type.
You can try out any product using a sample version before making a final decision on whether to purchase it. You have the freedom to swap whenever you want thanks to a one-year renting period and the opportunity to activate each product on at least four devices.
You can choose an EA from the market’s list of available options for the MetaTrader 4 platform. However, when doing so, don’t make your decision exclusively on the basis of cost, rental period, or any other one element.
There are a number of characteristics that appear promising on the surface but fail when put to the test.
Consequently, once a trader has chosen an EA to examine, he or she should be sure to take a close look at following parameters: risk percentage (risk vs. reward), market orders, spreads, hedging strategies, pips, target profit and many more.
Some advisors may provide a large number of categories and specifics, whereas others may supply a restricted number of categories and particular features.
While it may be more convenient to use a “simple” EA from time to time, it is critical to keep all of the vital aspects listed above in mind whenever choosing robotic trading software.
As such, it’s always preferable to compare many EAs before making a decision rather than selecting one at random from the list.
There are various advantages to using Expert Advisors from MetaTrader 4, not the least of which is the opportunity to apply a range of alternative trading methods, benefit from speedy order execution, and reduce your emotional engagement in the trading process.
Choosing the correct EA is critical, so make sure to set aside enough time to thoroughly analyse all of the available alternatives in order to choose the one that best suits your trading style.