What is the Best Platform for Automated Forex Trading?
If you are a more experienced trader, you may be considering trying automated trading. It makes the process much easier and allows you to get a lot more done in a much quicker time.
Automated trading can also be effective at eliminating human error. But how does automated trading actually work? And is MT4 still the recommended one among all the reliable Forex trading platforms when it comes to trading this way?
Let’s take a quick refresher on automated trading, before investigating the right Forex trading platform for the job.
What is automated Forex trading?
Automated trading refers to developing a set of rules for trade entries and exits based on your trading strategy. You then program the rules into your platform’s language so that the platform carries them out automatically. These rules must identify buy, sell, stop-loss, and profit-target values.
There are multiple benefits to using automated Forex trading:
- it removes some of the emotion from trading. The platform won’t second guess itself or make rash decisions based on unexpected losses.
- it executes trades automatically, with extremely fast reaction times.
- you can get a lot more done without having to carry out every trade yourself.
That’s not to say there are no disadvantages. If the connection to the Internet is lost, the problem needs to be manually fixed. And if left unnoticed, a position could be left “naked”.
Does MetaTrader 4 support automated trading?
MT4 is undoubtedly the Forex trading platform that you use for manual trading. But does it work with automated trading?
MT4 does support automated trading and is the most popular and reliable platform to do so. It uses a language called MetaQuotes Language 4 (MQL4) which works quickly and efficiently to carry out your trades for you.
In addition, MT4 provides a set of tools to get your automated trades set up.
MetaEditor is the interface provided by MT4 for programming source codes in MQL4. It features an Expert Advisors Wizard, that assists in the creation of MQL4 programs. Once written, the program must be compiled in MetaEditor. You can then test it in the MT4 Terminal.
There are 3 programs you can create using MetaEditor:
- Expert Advisors: these programs have been developed in MQL4 and can be used for the automation of analytical and trading processes or strategies.
- Custom indicators: these programs function as a technical indicator, for analyzing price activity.
- Scripts: scripts are programs written in MQL4 designed to perform a single execution of an action.
Just as with manual trading, MT4 is the best Forex trading platform for automation. It provides tools that are intuitive and effective.
■ ForexAutomatic Blog