{"id":8174,"date":"2018-09-19T21:00:11","date_gmt":"2018-09-19T12:00:11","guid":{"rendered":"https:\/\/is6.com\/info\/?p=8174"},"modified":"2024-09-19T11:09:20","modified_gmt":"2024-09-19T02:09:20","slug":"20180713-9","status":"publish","type":"post","link":"https:\/\/is6.com\/info\/en\/manual\/20180713-9\/","title":{"rendered":"[PC Version] Chapter 11: About Automated Trading Software (Expert Advisors, hereafter referred to as “EA”)"},"content":{"rendered":"

What is Automated Trading Software (EA)?<\/h2>\n

Automated trading involves executing trades automatically through a system programmed to follow certain trading rules,
\nknown as an EA (Expert Advisor).
\nThe system performs trades automatically based on the rules you set.<\/p>\n

Advantages of Automated Trading Software (EA)<\/h3>\n

IS6FX does not impose restrictions on the use of EAs.
\nThe advantages of using automated trading with MetaTrader 4 (hereinafter referred to as “MT4”) include the ability to execute trades 24\/7, even when the trader is not monitoring the computer screen.<\/p>\n

This allows for opportunities to gain significant profits during major market fluctuations.
\nBy integrating automated trading into your strategy with MT4, you do not have to stay in front of your computer; the system will handle trading according to the programmed rules.<\/p>\n

Compared with discretionary trading, where traders analyze market conditions and predict price movements, automated trading follows predetermined rules without being influenced by emotions or external opinions.
\nThis prevents missed opportunities and ensures planned stop-loss execution.<\/p>\n

Disadvantages of Automated Trading Software (EA)<\/h3>\n

Automated trading is not without its disadvantages.<\/p>\n

The market continuously alternates between “consolidation” and “trends.”
\nGenerally, consolidation accounts for 70-80% of the time, while trends account for 20-30%.
\nAutomated trading systems are programmed to operate effectively under one of these conditions.<\/p>\n

This means a program strong in consolidation may incur losses during trending phases, while a program strong in trends may experience small losses during consolidation periods.<\/p>\n

Understanding the advantages and disadvantages of EAs and using them effectively based on your trading style can help mitigate risks and stabilize profits.<\/p>\n

How to Install an EA in MT4<\/h2>\n

(1) Installing the EA<\/h3>\n

EA programs can be created by anyone using programming, but it is common to purchase paid EAs or optimize free EAs for trading.
\n\u203bNote: Only files with the “.ex4” extension can be used.<\/p>\n

(2) Opening the Data Folder<\/h3>\n

Launch MT4 and click \u201cOpen Data Folder\u201d from the \u201cFile\u201d menu.<\/p>\n

\"Opening<\/p>\n

(3) Selecting the MQL4 Folder<\/h3>\n

Once the folder opens, double-click the MQL4 folder.<\/p>\n

\"Selecting<\/p>\n

(4) Completing EA Installation<\/h3>\n

In the MQL4 folder, double-click the Experts folder and move the prepared EA file into the Experts folder.
\nAfter moving the file, restart MT4.<\/p>\n

If the installed EA appears in the Navigator window under Expert Advisors, the installation is complete.<\/p>\n

\"Completing<\/p>\n

Backtesting an EA<\/h2>\n

Backtesting allows you to simulate automatic trading using past chart data to assess the EA’s performance.
\nIt is recommended to check performance and functionality before running an EA on a live account.
\nAlways conduct a backtest before starting live trading.<\/p>\n

(1) Testing with Strategy Tester<\/h3>\n

Backtesting is performed using the Strategy Tester by running past charts.<\/p>\n

Click \u201cStrategy Tester\u201d from the \u201cView\u201d menu.
\nThe Strategy Tester window will appear. Conduct a backtest using the default EA \u201cMACD Sample\u201d provided by MT4.<\/p>\n

\"Strategy<\/p>\n

1. Expert Advisor:<\/strong>
\nSelect MACD Sample.<\/p>\n

2. Currency Pair:<\/strong>
\nSelect USDJPY (Dollar-Yen).<\/p>\n

3. Timeframe:<\/strong>
\nUse 1-hour timeframe (H1).<\/p>\n

4. Model:<\/strong>
\nChoose All Ticks.<\/p>\n

5. Specify Period:<\/strong>
\nTest with data from the previous month.<\/p>\n

6. Expert Settings:<\/strong>
\nSet the “Lots” parameter under the “Inputs” tab according to the trading unit.<\/p>\n

7. Visual Mode:<\/strong>
\nUncheck to prevent performance issues.<\/p>\n

\u203bNote: Click the \u201cStart\u201d button to begin the backtest.
\nThe process ends when the green progress bar reaches the right end.<\/p>\n

(2) Reviewing Backtest Results<\/h3>\n

After the backtest, review the results using graphs and reports.
\nCheck profit and loss, trade count, and ensure that there are no errors in lot size settings.<\/p>\n

Result Review:<\/strong>
\n\"Result<\/p>\n

Balance Progress Graph:<\/strong>
\n\"Balance<\/p>\n

Report Results (Profit, Loss, and Win Rate):<\/strong>
\n\"Report<\/p>\n

Turning EA On and Off<\/h2>\n

The EA operates when you turn on the automated trading button.
\nTo stop the EA, click the button again to turn off automated trading.<\/p>\n

(2) Turning EA Off<\/h3>\n

Click when automated trading is off (indicated by a red icon) to turn it on (indicated by a green icon).<\/p>\n

\"Turning<\/p>\n

(2)\u81ea\u52d5\u58f2\u8cb7OFF<\/h3>\n

Click when automated trading is on (indicated by a green icon) to turn it off (indicated by a red icon).
\nIn this case, trading will not start even if the EA settings are complete.<\/p>\n

\"Turning<\/p>\n

Setting EA Parameters<\/h2>\n

(1) Dragging and Dropping EA onto a Chart<\/h3>\n

Open the chart for the desired currency pair and timeframe. Select the EA from the Expert Advisors section in the Navigator window and drag it onto the chart.<\/p>\n

\"Running<\/p>\n

(2) Configuring Parameters<\/h3>\n

Click the \u201cCommon\u201d tab in the displayed window and check the following four options, then click \u201cOK\u201d:<\/p>\n

\"\"<\/p>\n

1. Enable Alerts
\n2. Allow Automated Trading
\n3. Allow DLL Imports
\n4. Allow External Experts<\/p>\n

Confirming EA Operation<\/h2>\n

The EA\u2019s status can be confirmed in the upper right corner of the chart where the EA is placed.
\nEnable the “Auto Trading” button to activate the EA.<\/p>\n

(1) EA Running<\/h3>\n

\"EA<\/p>\n

(2) EA Not Running<\/h3>\n

\"EA<\/p>\n

\nIf using an EA, we are not responsible for its operation or trading results.
\nPlease verify and use the EA at your own risk.\n<\/div>\n","protected":false},"excerpt":{"rendered":"

What is Automated Trading Software (EA)? Automated trading involves executing trades automatically through a system programmed to follow certain trading rules, known as an EA (Expert Advisor). The system performs trades automatically based on the rules you set. Advantages of Automated Trading Software (EA) IS6FX does not impose restrictions on the use of EAs. The […]<\/p>\n","protected":false},"author":1,"featured_media":934,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_locale":"en_US","_original_post":"399","footnotes":""},"categories":[11,3],"tags":[],"class_list":["post-8174","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pc","category-manual","en-US"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/posts\/8174","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/comments?post=8174"}],"version-history":[{"count":1,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/posts\/8174\/revisions"}],"predecessor-version":[{"id":8175,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/posts\/8174\/revisions\/8175"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/media\/934"}],"wp:attachment":[{"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/media?parent=8174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/categories?post=8174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/tags?post=8174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}