Application of scripts and Expert Advisors in Forex trading
In these times of technological progress, many processes can be automated. Routine mechanical work is now performed by automatic machines and robotic systems. Computer technologies allow to solve problems of any complexity, replacing the person in many areas of activity. This fully applies to stock trading in general and to the Forex market in particular. Computerization of trade has opened access to this market for almost anyone. There are a lot of programs for trading and market analysis. The most popular trading platform among traders is MetaTrader by MetaQuotes. This program allows opening and closing orders, placing various types of pending orders and analyzing the market with the help of indicators. The language in which the program is written is quite simple, so there are a lot of auxiliary programs that simplify, facilitate and automate trading. These are different indicators, scripts and Expert Advisors. Instructions on how to install and work with them can be found in the Metatrader help file and in the training courses, so we will not consider this issue here.
Scripts for Metatrader terminal – trader’s assistants
A script is a program that performs some one-time task. For example, the script can place the specified orders with the specified stops at the set time, close all orders and perform any other tasks with orders. This makes trading with a lot of currency pairs much easier. There are also scripts for working with the deposit and volumes of transactions, for working with graphical instruments of Metatrader terminal and many others. On the MetaQuotes website you can find scripts for any purpose and task. It is only important to understand what you need and choose from this variety. If selected correctly, the scripts will become indispensable helpers in trading.
Advisors or Expert Advisors
More complex programs are advisors. They are called “Expert Advisor” in English, so you can meet the name “experts”. They are also called MTS – Mechanical Trading System. Why are there so many different names? The point is that the set of rules for trading can be stated in the machine language and the program will give a signal to open a position. You can use this program as an Expert Advisor, deciding for yourself whether to open a position or not. And you can allow the Expert Advisor to open orders, maintain a position, close orders on a stop-loss or take-profit and so on. Then it’ll be MTS.
Mechanical trading systems
So these MTS offer to buy at every step, promising fabulous profits. Or they give free of charge, with the condition of opening an account in a certain company. Binary options brokers often provide MTS. At the same time, the testing results are attached, but it is very rare or impossible to see the results of real trading of these Expert Advisors. The fact is that the Expert Advisor can be really profitable, but its settings are tailored to the interests of their developers. For example, MTS is set up to open a large number of transactions that bring income from the affiliate program. Therefore, competent work with advisors requires experience and knowledge. It is necessary to be able to evaluate the quality of MTS and be able to test it. So you can’t start working on Forex with MTS in any way. First you need to learn how to trade manually, how to understand the principles and rules of trading, how to recognize the behavior of the market. You can also use MTS signals by combining them with your own analysis. And only then, if there is such a desire, it is possible to use MTS after optimization and thorough testing on demo accounts. It is also desirable to learn the MQL language for editing Expert Advisors. This is the only way to create a profitable MTS for yourself. Still, it will require constant maintenance, modernization and adjustment to changing market conditions.