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Automatic trading systems

  • #1
  • First Post: Oct 7, 2013 5:14pm Oct 7, 2013 5:14pm
So, this part is new to me. Are there systems that i can put onto my mt4 and they will auto execute trades throughout the day? based on certain indicators?
i guess this is where people talk about the "holy grail" systems because its making money without doing any work (but they dont exist lol)


Are these systems coded from scratch?.. is that was these .mq4 downloads are? and how do you implement them?. i just havent got alot of info on auto trading. is there a readup on how/ walk through kind of deal?

Any help is much appreciated.
  • #2
  • Oct 7, 2013 6:54pm Oct 7, 2013 6:54pm
Quoting nbwilson23
So, this part is new to me. Are there systems that i can put onto my mt4 and they will auto execute trades throughout the day? based on certain indicators? i guess this is where people talk about the "holy grail" systems because its making money without doing any work (but they dont exist lol)
Automatic trading isn't holy grail simply because it trades for you. That's just your trading which is automated.

With clear rules, almost any method/system can be automated (coded).
MT4/MT5 EAs/Indicators/Alerts coder
  • #3
  • Oct 7, 2013 9:37pm Oct 7, 2013 9:37pm
Almost any system can be automated but most such systems will fail. But that is one way of learning. Just don't bet the house on it and make sure to use a good programmer like Ferru who understands your struggles.
  • #4
  • Oct 7, 2013 9:56pm Oct 7, 2013 9:56pm
Quoting sydap2003
Just don't bet the house on it and make sure to use a good programmer like Ferru who understands your struggles.
MT4/MT5 EAs/Indicators/Alerts coder
  • #5
  • Oct 7, 2013 10:09pm Oct 7, 2013 10:09pm
ok. so basically. you have "your" personal set of guidelines. and you code them to a trading system. and it will trade all day/week as long as theres money and the guidelines are met.
  • #6
  • Oct 7, 2013 11:37pm Oct 7, 2013 11:37pm
I understand that most anything can be coded, except the discretion used by the trader.
I could take years for anyone to code it, even your own. I believe that is why most codes
fail.

As discretion can not be coded, makes the type of strategies for automatic trading limited to
mathematical, statistical etc.
  • #7
  • Oct 8, 2013 12:17am Oct 8, 2013 12:17am
Quoting chicochil
I believe that is why most codes fail.
Absolutely not. If an EA isn't profitable has nothing to do with the code ... but the strategy itself.

If the EA respect the strategy rules, the results will be related to the strategy not the code.
MT4/MT5 EAs/Indicators/Alerts coder
  • #8
  • Oct 8, 2013 12:17am Oct 8, 2013 12:17am
Quoting nbwilson23
ok. so basically. you have "your" personal set of guidelines. and you code them to a trading system. and it will trade all day/week as long as theres money and the guidelines are met.
Exactly.
MT4/MT5 EAs/Indicators/Alerts coder
  • #9
  • Oct 8, 2013 1:15am Oct 8, 2013 1:15am
Quoting FerruFx
{quote} Absolutely not. If an EA isn't profitable has nothing to do with the code ... but the strategy itself. If the EA respect the strategy rules, the results will be related to the strategy not the code.
I believe we are in the same page Ferru, I just expressed myself wrong.
What I was trying to say was:: the strategies that end up being coded fail because
all need discretion ... and one trader discretion can not be coded. Basically all strategies
that rely at least in one indicator need discretion to make them profitable.

So, from my point of view, the strategies for automatic trader must be completely different in nature
from the ones that most traders use manually. Only mathematical and statistical strategies do not need discretion.

I get your coder point of view... for you a code fails/is bad is when for some reason do not execute the orders according to the rules.
But most trader blame the coder.. right?
  • #10
  • Oct 18, 2013 10:27pm Oct 18, 2013 10:27pm
eas can work fine. You just need to think out of the box. I wouldn't even trade without ea as I think of this as a game that is to play .If your in trading to get rich quick - you probably are in for a surprise. I would learn to code or don't bother with a coder - would be my advice.
  • #11
  • Edited 12:59pm Oct 19, 2013 4:32am | Edited 12:59pm
I think in order to code such system, which I do and using them now.

Basically you need to know coding, meta query language (mql)

I think Grid Trading work the best ( i am using it ) but its require strong holding power( large capital ) unless you willing lower your risk for lesser returns.

- Taking Profit -

You need think how you wanna take profit , I got my own method.

My EA can works by constantly take minor profit for me to build up my capital.

This is some of the thing a coder who want to code EA have to think

How to protect your money, how you entry, how you exit

I personally think that rather than putting my money at bank which give me 1% interest ( at my country Singapore ) for a year

Having an EA make you Emotional Free - Keep your fat finger away from the trading desk.


All the best to your forex trading.

Basically I am a no DISCIPLINE trader, I am BIAS, I got greed, lazy and fear. which I doubt my manual trading will works in the long run, but I am having better success with EA as I don't really need to touch them. They work 24 hours even when you are sleeping looking for entry, taking profit for you .

Hope my post can motivate a potential EA coder to be to start working building his/her own EA

Let me give u a simple case study

Assuming UJ now is at 97.00
You have $30000, you set 20 max trade, each $1500 , you set lot size 0.2 - each 750 pip gap
You allocate $1500 per trade, UJ will only blow that trade if it hit 89.50 ( which at now the lowest was about 93-94 recently)

When it near 89.50, assuming you got another $30000 in your bank, you topup , you will approx get a SL of 82.00

Assuming this 89.50 doesn't hit, the daily intake of such system base on my EA can fetch approx 30-100 pips or maybe more if its in your direction.

Assuming UJ break to 100.00 and you think no point to risk 750, you can just play another pair like EUR CHF to keep on get money in.

Assuming EUR CHF have SNB cap at 1.2000 INTACT
You allocate 500 pips per trade - $1 per pip - micro lot
Your EA constantly open position - Tell me how to lose ?
(Only when SNB take off their cap or something crazy happen to europe that SNB cant defend 1.2000 ) - Rare Risk

Of course HUMAN will not be happy with $1 per pip (for many of us) , we tend to over play, big entry, big trade size, and blow off.

But EA can do the job for you , trade for you 24/7, all you need do is periodically look at your computer, see how much its make
Trading is something special.
  • #12
  • Oct 19, 2013 5:49am Oct 19, 2013 5:49am
Since I'm (still) not allowed to open a new thread, please allow to ask my question here, which is related to "automatic trading".

While running an ea the graph will be drawn at the same time. On x-axis it shows no. of trades.
I saw a graph from someone else where the timeline (dates) was shown instead of no. of trades. Unfortunately, I do not find a switch for it. Can somone explain how to switch, please?
Thanks in advance!
Attached Image (click to enlarge)
Click to Enlarge Name: TesterGraph.jpg Size: 50 KB
  • #13
  • Oct 19, 2013 7:38am Oct 19, 2013 7:38am
agreed... also I think with most coders - . They code what you tell them - but ea's need a lot of tweeks before getting something that makes/adapts to market sense and not just indicators which are not really usable. You have to code "what" you would do in a live environment. Its not hard to learn coding. It took me about 3 months starting in MQL. Its step 1, step 2, step 3. Just get off your lazy a ss and do it... Also, I would recommend You find a good base ea that's done and than start adding and subtracting to code. The great coders can do this from scratch. I am not a great coder or a great trader but all you need is 1 ea. Just 1. I had thousands of eas fail - some after a month, some after a day. It doesn't matter - you keep grinding and grinding and grinding.
  • #14
  • Oct 19, 2013 7:48am Oct 19, 2013 7:48am
Another beginner's questions about spread - spread used in the backtesting and "current" spread shown in the trade terminal.
(Market is off, for this reason the spread in trade terminal is that high).

My question: the spread used in backtesting (here 5) does it representate 5.0 or 0.5 in trade terminal?
(Please, no "I guess..." answers. This is what I can do as well :-) )

Thanks again!
Attached Image
  • #15
  • Oct 23, 2013 8:27pm Oct 23, 2013 8:27pm
spread is the number of pips that you want to allow to pay (bid/ask) for the exchange. Think of it is "adding onto the stoploss for a sell or getting that much less at the end when you close a buy. Also, you want spread protection built into your ea's or you can get burned at weird times of low liquidity as they can widen like crazy----20-30 points if your not carefull.... ..... you don't want to be there by accident but you don't want them too tight either. I usually use probably 5 or 10 pips depending on the volatility of the currency. There is best price and then there is order fill.


int spread = 50 (5 or 50 depending digits in currency -50 would be a 5 digit currency) using your example.
//Trade Management.
int Sp=(Ask-Bid)/Point;
int Sp2 = spread;
  • #16
  • Oct 23, 2013 8:35pm Oct 23, 2013 8:35pm
Quoting maybe8
Another beginner's questions about spread - spread used in the backtesting and \"current\" spread shown in the trade terminal. (Market is off, for this reason the spread in trade terminal is that high). My question: the spread used in backtesting (here 5) does it representate 5.0 or 0.5 in trade terminal? (Please, no \"I guess...\" answers. This is what I can do as well :-) ) Thanks again! {image}
If your broker is 5-digits, so the spread (5) shown in backtester is 0.5pip ... If 4-digits, it's 5pips.
MT4/MT5 EAs/Indicators/Alerts coder
  • #17
  • Oct 24, 2013 8:43am Oct 24, 2013 8:43am
Thank you guys!
I think, I understand it better now, but want to be more piggy on "broker" and "currency".
Pic. in post #12 shows a 5-diget price. So, I assume I have a 5 diget broker and, of course, currency is 5-diget as well.
This would mean my backtest (still refering to post #12) with 5 pips represents 0.5 pip spread, right?

Now it becomes difficult when looking at this pic with a 3-diget currency (still the same broker ).

Attached Image


What pip value do I have to enter in backtest to represent the "real" 0.5 spread shown in this pic?
When it is broker releated I'd think there are the "same" 5 pips as with EUR/USD above. I'm currious about your answers.

Thanks again!
  • #18
  • Oct 24, 2013 9:06am Oct 24, 2013 9:06am
Quoting maybe8
Thank you guys! I think, I understand it better now, but want to be more piggy on \"broker\" and \"currency\". Pic. in post #12 shows a 5-diget price. So, I assume I have a 5 diget broker and, of course, currency is 5-diget as well. This would mean my backtest (still refering to post #12) with 5 pips represents 0.5 pip spread, right? Now it becomes difficult when looking at this pic with a 3-diget currency (still the same broker ). {image} What pip value do I have to enter in backtest to represent the \"real\" 0.5 spread shown in this pic? When...
When we talk about 5-digits broker, that also means that JPY pairs are 3-digits instead of 2. So spread 5 in the backtester is 0.5.
MT4/MT5 EAs/Indicators/Alerts coder
  • #19
  • Oct 24, 2013 10:18am Oct 24, 2013 10:18am
Alright, thanks for confimation!
  • #20
  • Oct 24, 2013 10:21am Oct 24, 2013 10:21am
Quoting maybe8
Alright, thanks for confimation!
You're welcome!
MT4/MT5 EAs/Indicators/Alerts coder
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