Shaun Overton
Shaun Overton

Developing customised Expert Advisors from bespoke FX trade strategies

MetaTrader quickly dominated the forex market as the platform of choice for retail traders. Its easy to use interface and wide availability across multiple brokers made it an instant hit. Shaun Overton examines the ease with which traders can use Expert Advisors to facilitate their trading, offering a viable alternative to traders that are unable to trade manually with consistent positive results.

First Published: e-Forex Magazine 44 / Traders Workshop / July, 2011

While most traders intuitively understand the benefits of automated trading, they have a hard time quantifying their strategies in mechanical terms. Traders refer to subjective topics such as swing highs and retracements. Deciding what counts as a swing high, for example, poses a number of challenges. A strategy could review a short number of bars, making decisions based on micro trends. It can also review a larger time windows, only placing trades during attention grabbing price movements. If the strategy uses the big picture, how do you define the picture in terms of time or bars? Traders can use a fixed time window (e.g., 50 bars) or develop a mathematical rule to decide how much time is relevant.  Getting away from subjective terms The goal is to get away from subjective terms and to turn the strategy into a flow chart. Once that is done, you have something that you can program. “Take the strategy’s shortcomings as a learning experience. During the process, you may even uncover the...continued

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