Forex Trading Tools and Methods (+)

Building Customized Indicators or EAs for Trading the Global Markets

 

There are many different ways to trade Forex currencies and CFDs. This article involves the development of customized automated strategies without the need for programming skills. These strategies can either be applied:

(i) manually, via the use of a custom indicator (Signals Machine)

(ii) automatically, via the use of an Expert Advisor (EA)

 

How to Create a Customized Indicator or an Expert Advisor (Robot) for Trading the Global Markets

An easy tool for the creation of custom trading strategies is the web app ExpertAdvisor Builder. This app requires no installation, and no programming skills, and it is free for creating indicators. If you want to build Expert Advisors (robots) you have to pay a one-time fee.

Note: The web application can be used for creating EAs or indicators for MT4, MT5, and Tradestation to trade Forex and CFDs.

 

(i) Creating Custom Indicators and Expert Advisors

 

Trading the global markets by using your customized indicators can lead to the creation of a complete trading system. To create a trading system you will also need some trading rules and a money management system.

The web app ExpertAdvisor Builder offers an extremely easy-to-use interface for creating indicators and you can use it for free. You can create an indicator based on tens of different variables and even create an extremely helpful alert system.

Example

In the following example, we are going to create signals based on MACD (12,26,9)

• A popular bullish/bearish indication is when the MACD signal line crosses above or below the MACD baseline in the H1/H4/D1 timeframes. Therefore, we are going to build an indicator that will alert us only when these particular conditions are met.

In the following image, you can see how easy it gets to create those conditions (1,2,3).

To create signals for both bullish and bearish markets based on MACD conditions you just have to create two different indicators. You can build much more sophisticated indicators by combining more complex conditions.

» Expert Advisor Builder Website (register for free)

Requirements

The only requirement to create and use your new indicator is to have the MT4 platform installed in your PC. You can do that by opening a simple demo account with a Forex Broker, or you can open a real account and never fund it. So you can use the MT4 platform for free.

Choose any broker just for download and use the MT4 platform:

» Download MT4 from IC MARKETS

» Download MT4 from RoboForex

 

Easy Steps for Creating Your Custom Indicator on MT4

Here is all you have to do in some easy steps:

(1) Register an Account with ExpertAdvisor Builder only for creating indicators (free)

(2) Create your custom indicator and export the file (.MQL4 form)

(3) Open a real account with any MT4 broker without funding it (free)

(4) Copy the MQL4 file into your MT4 install at the folder 'Indicators' {Instalation Folder → MQL4 folder → INDICATORS folder}

(5) Now open the MT4 platform and go to any chart (if you press ctrl-M you see all assets)

(6) As you have opened a chart view go to the menu page 'INSERT' then select 'INDICATORS' and finally select 'CUSTOM INDICATORS', your indicator is there just click it

(7) Now your indicator is applied to that particular chart showing arrows each time your trading conditions are met, or even creating alerts (sound alerts, etc.)

 

Extremely easy and beneficial no matter if you trade Forex or CFDs.

 

(ii) Building Expert Advisors for Trading Forex or CFDs

 

The implementation of a trading strategy requires some particular trading conditions. Usually, these conditions are met rarely during a trading day. Therefore, traders must devote many hours daily to meet these perfect market conditions. This problem can be solved now given that your broker supports MT4/MT5. The solution is the development of an Automated Strategy which is called an Expert Advisor.

The web app we are going to use for creating Eas is the same as before and does require any programming skills. The software can be used for free to create indicators but to build EAs, you have to pay a one-time fee ($97).

Requirements

The only requirement is that your broker supports the MT4/MT5 or TradeStation platform. If this is true then you can proceed with registering with Expert Advisor Builder.

» Expert Advisor Builder (create an EA and run it on MT4)

 

Specifications of the Expert Advisor Builder App

The application is designed as an easy tool for converting ideas into automated trading systems. There is no need for programming skills.

The application develops Expert Advisors for trading any asset (Forex Currencies, Stocks, Indices, Gold, Oil, etc.). Many tutorials on the EA builder website can help traders solve any problem.

■ Free application for creating custom indicators

■ 97USD for creating Expert Advisors

You can start with the free application (custom, indicators) and then upgrade to EA building.

Important Functions

• Use tens of different Indicators and Variables

• Full Money-Management control

• Insert complex Time preferences

• Customize Position Sizing

• Apply Martingale / Anti-Martingale techniques

 

Example of an Automated Trading Strategy

In the following example, we are building an automated breakout strategy with EA Builder. The same example is found in the ExpertAdvisor Builder website with more details. You can find it in the Tutorials area.

Structuring the new EA

You can add a great variety of trading variables, in the following example we use:

1. Price (Bid), Crosses Above, Resistance

2. Time Interval of 12 hours

3. Fixed time of the day

4. Time Interval ends at 10 o'clock

5. We want to draw the resistance on the chart

6. In the end, click OK

 

Using the EA

• The concept behind this strategy is that when the price breaks through a significant level (support or resistance), it will likely continue in the same direction for at least 1 more hour.
• The exact opposite conditions can be applied to selling the market. If the price crosses below support then the system will open a new position with the same expiry time.
• As the number of trades is not limited yet, the same order could be sent many times. To avoid this situation, we can send the next order to the following day. This can be done by checking “Next Open Trade After Time Of The Day” at 10 o'clock, which is the exact time when the interval ends.
• After, we set the right Money Management. In the example, the invested money is just 10 USD.
• That is all, the Source is ready, copy the source, and compile it for MT4 (.MQ4 or .EX4).
• The final file must be placed to MT4 install: {Instalation Folder → MQL4 folder → EXPERTS folder}

 

Open / Restart the MetaTrader platform, and follow these steps:

1. Activate the Automated Trading Option (in the center of the TopMenu)
2. Go to the chart view you want (i.e. EURUSD) to apply your new EA
3. Press Ctrl-N and the navigation windows will appear (left of your main screen).
4. Click on the name of the new Expert Advisor from the navigation menu (it is found under the 'EXPERT ADVISORS'.

From now on, your EA will automatically open a long or short trade position each time the price breaks through major levels of support or resistance.

This is how you can implement any trading idea into an Expert Advisor for trading the global markets via MT4/MT5.

» Expert Advisor Builder Website

 

 

■ Customized Indicators or EAs (Robots) for Trading the Global Markets

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