Posts Tagged ‘MetaTrader’

02.11.2011 Post in Trading
Everybody needs a robot – something I have always said.
Everybody needs a friend who’s got shiny metal head.
Everybody needs a robot, even if you’ve found someone.
Now and then you need a friend with hormones made from Mobil 1.

Everybody needs a robot on the dashboard of their car.
If you try to drive yourself you won’t be getting very far.

These lines from a popular song are exactly about Forex trading. Once we need robots to help us in many ways today, to let them earn instead of us may be a good idea.

The big question is, whether robot traders may replace human beings on financial markets.

Robot traders (also known as expert advisers) are special software that fulfills a range of functions on Forex market. In the MetaTrader trading terminal robot traders are based on the MQL programming language. They enable to automatically implement a well-tried trading strategy. Does this mean that a man may launch robots and relax watching them getting profit?

On specialized Forex forums there is no broad consensus. Some are skeptical about such a golden goose. Others talk about ideal expert advisers which enable successful automatic trading.

1309584765_robotType ‘expert adviser’ in an indexing service and you will see thousands of juicy advertisements: Buy Expert Advisers, The Ever-Best Expert Adviser, 500% Profits. Going to buy? Hold the horses. Robot traders have both strengths and weak spots.

Forex newcomers often tend to lose their deposits as they act hot-blooded and are short of experience in trading. They can neither analyze each and every market fluctuation, nor bear in mind tens of trading instruments. And that is not something unusual: no man cans. Every human being needs time to take measured decisions.

In contrast, expert advisers are not human beings, and everything human is alien to them. They are prompt and multifunctional. They manage to control any number of currency pairs, respond immediately to market fluctuations, and instantly make accurate calculations. More importantly, robot traders have no emotions.

However, don’t be exited to download and launch a robot trader immediately. Although bait is much to use oeuvres of professionals, without knowledge you risk to go down like a lead balloon. What is a robot trader, after all? It is a reflection of someone’s trading strategy. Examine this strategy carefully before you follow it.

Moreover, no expert adviser guarantees profits without losses. It neither is responsible for outcomes of your trading, nor protects you against financial losses.

Even their strengths may turn to drawbacks. A strict strategy excludes any flexibility. A robot will never be able to deviate from what it has been programmed for. It has no intuition, reads no news and knows nothing about human psychology.

Although robot traders accurately fulfill a number of functions in Forex trading, they still need a certain portion of human control. A rational way is to practice semi-automated trading: work out a strategy and then develop a robot trader, or simply get it developed for you. At least you will know exactly how it should work. Whether you choose to use expert advisers or not; if you choose to use robots, test and adjust any of them before you start trading. A folk wisdom says: put your trust in robot but keep your powder dry.

Added by Tatyana Makhina,
InstaForex Clients’ relationship manager

08.12.2010 Post in Trading

Using the programming language by a trader brings him to a completely new trading level – autotrading. Today a trader has an opportunity to realize his ideas by means of application program – write an user-specific indicator, script for implementing one-time operations or create an advisor – automatic trading system. The advisor can work 24 hours without any outside interference – monitor all changes of financial instruments price, send e-mail messages, sms-messages to a mobile phone and make many other useful things.
This Forex instrument certainly attracts experienced traders and stimulates their success on Forex market. For the newcomers MQL programming language is some kind of a guide into Forex market, where certain streams are manageable.
The main advantage of applicable programs is an opportunity to carry out trading operations according to the algorithm set by a trader at his own discretion. Any ideas which can be expressed in the algorithm language can be inserted into the program and used in a practical trading afterwards.
Application programs composition for MetaTrader 4 trading terminal requires knowledge of MQL4 language allowing to create advisors, scripts and indicators by yourself bringing your ideas to life – profitable trading algorithms.
Using MQL programming language you can create:
• Scripts – sequences of commands, programs which are implemented only once on your demand. They can replace actions made by you daily during the trading.
• User indicators – technical indicators written as an addition to the indicators inserted in the terminal. They display graphs or any other visual information. In distinct from scripts they perform at each price changing.
• Advisors – mechanical trading systems attached to any financial instrument. Advisors as well as user indicators perform at each price changing.
• Libraries – set of functions for executing specific tasks.
If you want to become familiar with the programming language you have to spend quite much time for this purpose. The better you get wise to the whole received material the easier it will be for you to start trading with an automatic trading system.

Added by InstaForex Staff

21.10.2010 Post in Trading

The long-expected new trading platform MetaTrader 5 by software developer MetaQuotes Software Corporation was officially released on 1st June 2010. It has a set of impressive advantages both over the previous MetaTrader4 and other trading terminals.

Now there is a single position for total result of each currency pair, which makes trading more convenient. Moreover, abolition of position locking minimizes trader’s expenses for entering and exiting the market. Also the terminal now supports 4 types of order execution: Market, Instant, Request and Exchange. Aside from the market orders Buy and Sell, 6 types of pending orders are supported: Buy Limit, Buy Stop, Sell Limit, Sell Stop, Buy Stop Limit and Sell Stop Limit.

Another useful novelty is that quotation history in MetaTrader 5 terminal is stored in the minute timeframe (M1) only, and all charts are constructed on its basis. Such a concept allowed increasing the number of timeframes up to 21, so any period is available for quotation analysis: from minute to month timeframe. The way of historical data storage in MetaTrader 5 terminal is also highly economical.

Another important advantage of the new platform is the implementation of new development environment – object oriented programming language MQL5. It includes MetaEditor 5, MetaTrader 5 Strategy Tester, MetaQuotes Language 5 (MQL5) and client terminal MetaTrader 5 where expert advisors are executed. MQL5 has a very high speed of execution and is very close to C++ language in that parameter. For comparison, new language is 4-20 times faster than MQL4. High speed makes the development of even the most complex expert advisors easier and faster. MetaTrader 5 Strategy Tester is the most powerful instrument for any expert advisors developer. With it you can acquire expert advisor work results based on history before using it in real trading. Detailed reports on trading system allow traders to test expert advisors, detect their weaknesses, and compare them with other similar products.

Added by Tatyana Makhina,
InstaForex Clients’ relationship manager