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In my previous article several types of trading strategies were described that traders are able to code to make them fully automated. These types have evolved out of the most steady trading methods that showed relatively consistent positive results. In the period of time they brought in constant return but occasionally caused losses so that they could be named relatively profitable.
The first type of strategies has indicators as the main basis of their work. Indicators allow traders to determine the forthcoming movement of currency rate. Every indicator has some inherent logic – an algorithm reflected in its mathematical calculation. Usually this algorithm is a relation of several activities that could be derived from the price itself. The use of indicators simplifies the making of trading decisions, as frequent calculations for an algo-trader are inconvenient. But with the help of indicators he is able to find the most favorable time to enter and exit the market. There are various indicators and algo-trader even could invent his own one. As every indicator is calculated differently, their combination with optimized parameters in EA might be profitable.
Finding the working bunch …
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driven avatar
driven 12 June

I get the impression that you have a lot of valuable knowledge to share. You don't seem to be getting much support yet, but keep up the good work and I think that will change.

chuvee avatar
chuvee 14 June

Hey, you encouraged me again. Thank you, driven. I have some hints to share :) Though they don't seem to me to be the knowledge. I also have one real working program, I'll tell about it then.

WallStreet6 avatar

Interesting looks quite promising- maybe you can keep us updated how it does in the future

chuvee avatar
chuvee 15 June

To say the truth I didn't make backtests on previous periods. In 2015 year the results of these programs are rather unstable but they are not futile as we have 6 months to go.

orto leave comments
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Are they any good? Yes and no. It depends on your expectations (what you want to use them for) and/or the EA's level of profitability. Just as "apps" are ever evolving for phones, EA's are continuously evolving for trading. Programmers, working alongside traders, are creating more sophisticated EA's to replace the need for manual trading. EA's can be programmed to perform a simple task, complex algorithms, or anything in between. An EA can alert you to a potential trade setup, take over a multitude of routine aspects of your trading, or fully automate your trading from entry to exit.
I'll break it down to the pros and cons, provide a few examples of practical applications, outline some considerations, and then let you decide for yourself.
Advantages of EA's
  • Accuracy and speed of execution
  • Removes human emotion
  • Strategy back testing capabilities
  • Risk management
  • Amazing stamina

Disadvantages of EA's
  • When your computer system goes down, the EA stops working.
  • Creating customized EA's for complex trading strategies may be costly.
  • When platforms are upgraded, your EA may need upgrading too.
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VictoriaVika avatar

Nice analysis on.  Great one for using in Forex markets!  Wait the next one your article. 

DEMO2TZeHs avatar
DEMO2TZeHs 24 Feb.

thanks for all the comments

Olga18375 avatar
Olga18375 24 Feb.

Good luck in contest!! Good work

Natalia_Kisenko avatar

Very nice article!

aslamhammad avatar

Automated EA, that open buy and sell positions do perform well sometimes, but the real skill in trading is not by bots, it's by manual human traders :). Bots, however have the advantage to filter emotions, so they end up with greater gains sometimes :)

orto leave comments