Algorithmic Trading
You'll Master: Develop and implement automated trading strategies using Expert Advisors (EAs)
What is Algorithmic Trading?
Automate Your Edge:
Algorithmic trading uses computer programs to execute trades based on predefined rules and logic, removing emotion and enabling 24/5 trading.
- Speed: Executes trades instantly
- Logic: Follows your strategy without emotion
- Consistency: Trades all day, every day
Understanding Expert Advisors (EAs)
Meet Your Trading Robot:
Expert Advisors (EAs) are automated trading systems for MetaTrader platforms. They analyze charts and execute trades based on your coded strategy.
- Customizable: Program your own rules
- Backtestable: Test on historical data
- Automatic: No manual intervention needed
Building a Simple EA: Step-by-Step
Define your trading logic (e.g., Moving Average crossover)
Write the rules in MQL5 (MetaTrader 5 language)
Test your EA on historical data (backtesting)
Optimize parameters for best results
Deploy on a demo or live account
Example: Moving Average Crossover EA
Strategy Logic:
Buy when the fast MA crosses above the slow MA. Sell when the fast MA crosses below the slow MA.
Backtesting & Optimization
Why Backtest?
Backtesting lets you see how your EA would have performed in the past. Optimization helps you find the best parameters for your strategy.
- Historical Data: Test on years of price action
- Performance Metrics: Analyze profit, drawdown, win rate
- Parameter Tuning: Adjust settings for best results
Risk Management for EAs
Protect Your Capital:
Automated strategies must include risk controls to avoid large losses.
- Lot Size: Use fixed or dynamic position sizing
- Stop Loss & Take Profit: Always set exit points
- Max Drawdown: Code limits to stop trading after losses