It is possible to start trading your own automatic forex trading system in your forex trading account using Forex Expert Advisors and the Metatrader 4 (MT4) trading platform.
Quick steps to start trading forex automatically:
Step 1: Sign up for an Introducing Broker program for free and open a FREE DEMO account at a forex broker that supports the Metatrader 4 trading platform.
Step 2: Get an Expert Advisor (EA) from forex forums or buy online.
Step 3 – Get a Virtual Private Server (VPS) – This allows for the lowest latency connection to your forex broker.
Step 4 – Install Your Forex Broker’s Metatrader 4 Trading Platform on Your VPS
Step 4: Install Expert Adviser on the applicable Forex pairs chart within Metatrader 4, for example, the Eur/Usd chart.
Step 5 – The Expert Advisor will now automatically trade your DEMO forex trading account on that currency pair using your programmed forex trading and money management strategies.
Step 6 – After you have successfully tested the EA on a live forex demo account for a month or 2, and are satisfied with the results, you can now open a live forex trading account and repeat steps 1 to 5.
Retest your Expert Advisor.
The Metrader 4 (MT4) trading platform has a built-in strategy tester that allows you to backtest an expert advisor and see how the EA would have performed over the last year or 2, etc.
If you want to backtest your forex trading system, you need accurate historical data, and the data needs to be accurate on every time frame, from the 1 minute time frame to the 4 hour time frame. Otherwise, you will receive error messages and inaccurate data. subsequent test results.
Ideally, you would like to have historical data for each price tick of each currency pair, but the best we can do is get the 1-minute time frame historical data on the Metatrader 4 (MT4) trading platform. It is possible to get “tick data” in Metatrader 4, but that involves a lot more work and will not be discussed in this article.
Usually there will be a discrepancy between backtesting and trading on a live forex account, because you would be backtesting at the end of the 1 minute time bar and not step by step like on a live account. But because this is the minimum time frame that we can download within Metatrader 4 (MT4), it should give us an idea of how a particular system might behave in certain market conditions and not how it will actually behave in market trading conditions. live market. That’s why they also call it 90% modeling quality and not 100% modeling quality.
All you have to do is download the historical data for the currency pair in the history center within Metatrader 4 and use the built-in strategy tester to test your EA. Metatrader will then print a chart and trading history of all trades made for further analysis.