Forex expert advisors, otherwise known as EAs, are programs that are capable of trading the foreign exchange market on behalf of and based on the instructions of the trader. It is used in auto trading to save time and bring about a good level of precision in trades. It is the same this as a robot, except that robots are created by programmers that can actually code, and it can function on any trading platform; while an EA can be created by someone that knows next to nothing about programming, and is only compatible with the metatrader platforms.
To create an EA, all you will need in a strategy that has probably been used over and again in a manual trading system, and each time provided great results. The creation of an EA will convert the strategy to an auto system that can trade the market on behalf of the investor with little or no human input, so long as the market conditions are met.
THE META TRADER WIZARD:
The Meta trader wizard is a portable window that can create a really simple forex expert advisor that can automatically trade the market. It does this by analyzing technical indicators and trade execution, with no need for a single line of code. Here is an image of what the MQL Wizard looks like
STEPS TO CREATING A FOREX EA
Follow these simple steps to create a forex EA
1. Open the metaeditor on your metatrader platform and select new from the menu to bring forth a popup menu
2. Select the second option from the popup window, that is the “Expert Advisor (generate)”, and click on next to set the general properties of the EA
3. Set the signals properties of your expert advisor by selecting any of the inbuilt technical indicators already included in the MT platform. If the indicator of your choice is not there already, click on “add”, and then enter the necessary fields in the pop up window
4. The fourth step will be to determine the trailing stop of your EA. It can be based on a fixed number of pips, or a technical indicator. You can also decide not to add one yet till you are sure you need it.
5. Finally, set the risk management rule. This can be done by deciding to trade with a fixed volume, margin, or risk percentage.
These are pretty much all you need to set up your EA. As you can see, there was not a single need for a code like programmers do when developing a forex robot.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.