Forex Correlation Code Review

An expert advisor is simply a piece of code written in the MQL4 programming language which, once installed on your MetaTrader 4 Forex trading platform, has the ability to automate the opening and closing of trades on your behalf. It is a piece of code that includes a set of rules based on what, how and when to trade. It also allows you to adjust stop loss, take profit and trailing stop levels according to pre-defined parameters.

Every expert advisor is different. Every EA – its own animal. But they all serve the same purpose: to eliminate inconsistency – a fault that characterizes most traders.

How An Expert Advisor Works

Once installed and enabled to run, an EA will usually first check if there is enough equity in your account to open a trade. If there isn’t, it won’t run.

If there is enough equity in your account, the EA will on each tick of the currency pair(s) that it is assigned to trade on, run through it’s rules and codes and verify that the trade entry criteria have been met. Alternatively, if open trades already exist, it will check that an exit (stop-loss or take-profit) criteria has occurred. If it has, it will automatically exit the trade for you.

To work, the computer that is running your expert advisor (and trading platform) must be kept running all the time while the forex market is open. If you ensure that your computer is running 24×5 – all you have to do is sit back, relax and let it do its thing!

Programming a Strategy Into The Expert Advisor

An expert advisor can be designed to trade many different strategies. They can include grid strategies, hedging strategies, martingale and reverse martingale strategies, trend following strategies, correlation strategies – you name it. Additionally, you can choose to combine one or more strategies together.

Forex expert advisors can trade breakouts, news announcements only or they can be scalping expert advisors which aim to secure small profits as soon as they are avaliable. An expert advisor can be programmed to do whatever you like – the possiblilities are truly limitless.

Classic EA’s look to trade bounces off of support and resistance and reversals. They enter trades when a high probability setup looks like occuring. Many expert advisors come with trailing stop losses – a feature which helps you lock in profits.They can also be programmed to monitor market conditions for reversals and then close your trade immediately when these conditions are met to lock in profits as well.

More advanced EA’s can trade multiple pairs simultaneously or monitor multiple timeframes at once, giving you a wide range of options in picking a market trend – something that would take you hours if you had to do it manually.

The type of EA you choose to trade with should sit well with your overall trading style. Playing around with its risk-settings while it is trading live will give you a better feel for what it does well and you will learn it’s characteristics better. If you understand what it is doing, you will have more confidence in it to ride out a bad performing patch while you continue to monitor and play with its stop-loss and take-profit levels.

While the point of forex expert advisors is to automate your trading decisions and improve trading consistency by taking emotions out of your trading, you still must pay attention to what the expert advisor is doing. This is especially relevant if your expert advisor is automatically set at a wide stop-loss of say 100 pips or more.

Conclusion

Understanding the strengths and weaknesses of your Forex Expert Advisor is paramount if you intend to trade with them in live market conditions and with real money. There are various different types of Expert Advisors available today for the Mt4 platform and they are restricted only by the creativity of the programmers who design them.

If you understand the fact enclosed, you will have a clearer insight in terms of what it takes to win at forex trading. Most traders have no idea of its significance and lose – make sure you understand it and its significance…

Here is the fact you need to know first:

30 years ago 95% of traders lost money and the same ratio applies today this is DESPITE all the advances we have seen in computer power, software, speed of communications and quality of news – the ratio remains the same.

So what you may say?

Well despite all the advances we have seen in technology, its NOT helped the ratio of winners to losers and this leads to some obvious conclusions.

Success does NOT rely on the following:

- Up to date news

- Complicated mathematical formulas

- Trying to be clever or complex

You have numerous vendors telling you that prices move to mathematical formulas and they sell junk systems, on the back of this theory – but all they have is a simulation backwards so they fail going forward.

Many so called experts also tell you that you should work hard and be complex etc but this has never lead to success. There is no correlation between working hard and being clever and success.

There is no Code of Market Behaviour

People think they can apply technology and crack the code of the market but there is no code and prices DON’T Move to complex mathematical formulas.

Forex markets are simply an odds game and the way to win has been the same for decades:

- Don’t work hard – work smart
- Use a simple system as its more robust
- Forget trying to be clever or complicated – keep it simple!
- Above all you will need the traits of confidence and discipline to win

The Real Key to Success

Is a simple robust trading method which you can apply with discipline.

Discipline is essential and your trading success is reliant on this trait, as much as method. There is no point in having a good trading method, if you don’t have the discipline to trade it through a period of losses.

Losing periods happen and you must keep going, until you hit a home run. If you have no discipline to follow your method you don’t have a method!

Most traders think they can predict and refuse to take losses or throw in the towel early whereas, if they had kept their discipline they could have won.

Method and Disciplined Application

The way to make money is to combine the two and get a solid forex education and have confidence in your system, so you can apply it with discipline.

Today most traders make the fatal mistake of believing in experts and automatic profits with no effort and they lose. If you want to win get the right forex education keep it simple, get a disciplined mindset and win.

Anyone Can Enjoy Success But..

Always remember – anyone can learn forex trading and win and it’s not the market that beats the trader, it’s the trader who beats himself.

You can’t blame your tools no matter how clever they are and as they say a bad workman always blames his tools!

If you understand the above you will see success is within your grasp, if you want to win you can – good luck!

The Forex trading market has changed dramatically over the years, especially with the introduction of Forex automated trading software. In the beginning these algorithmic trading systems were only available to a specific group-professional traders-and not the average, independent traders. Forex traders and amateur code-writers teamed up early on to create the first robots and auctioned them to customers online, but didn’t provide them with needed support.

A lot has changed since then, especially in the way of online marketing. It’s great to see some positive changes such as customer support and affordable pricing, but with all the fancy websites-each claiming their product is the best-it can be rather difficult for the new trader to know what to believe. For example, did you know that many of these robots are designed for different strategies like trend trading, scalping, grid trading, breakout trading and correlation trading? While there is nothing wrong with that in and of itself, you have to be prepared for changes in the market. So if you are trading with a robot that is built for a particular market, it should have settings that will stop it from trading when necessary. Some examples would be FAPTurbo and Forex MegaDroid.

The first robot, FAPTurbo, combines short-term scalping and trend trading and the scalper is optimized to trade at times when it is suitable to do so. Next is Forex MegaDroid, which is designed with a built-in mechanism that adjusts automatically for multi-market trading. Another benefit to using this robot is that it provides consistency in its trading decisions. It makes decisions based on certain guidelines.

These robots are automated, which means the hard part is taken care of for you and of course, you are free to move around instead of just staring at your computer screen constantly. This is great for independent traders who need to multi-task or handle other important matters that may come up.

I think we have come a long way since the early inception of automated trading software into the Forex trading market. Independent and professional traders alike can now both benefit from all the advantages offered by these advanced robot technologies. You can choose which one is best for you based on your individual style of trading, improved customer support and affordable pricing options. In the end the choice will be yours as to which robot you prefer, so be informed and you will be trading like a professional in no time.