Articles from evancarmicheal - Which is the most popular forex expert advisor?

MT4 is widely used for Forex trading and one feature I personally like about metatrader 4 is the MQL programming language that comes with it. This programming language allows you to codes your favorite profitable trading rules into programs called expert advisor and let it run on your computer automatically.


Which is the most popular forex expert advisor?

Expert Advisor

MQL4 is basically a programming language that is similar to C and it is used for coding strategy into program. The program which can be set and run in MT4 are called Expert Advisor or EA. Expert Advisor is lines of codes that run on your forex trading account and simulator strategy tester is used to test the EA using historical price data. The results report from the strategy tester is used to fine tune the strategy and in order to select the best Forex trading program EA, below are some indices that need to be check.

Return on Investment (ROI)


This is a measurement of the price capital that you invested in your Forex trading with the profit return that you gains over a certain time which is a measurement against it. A 100% return over 1 year is a very good indicator that it able to give you 1 dollar profit to 1 dollar invested. When compare to bank saving account interests and stock market and unit trust, 100% return is many times better. For Expert Advisor, minimum 20% return annually is desirable. Any figures less then that is not worth your investement.

Profit Factor

This is calculated by dividing the total profit by total losses. A simple indicator but yet a powerful indices that show over all the time, how profit is the program. A profit factor of 2 means you earn 2 dollars for every 1 dollar you loss. Most program gives profit factor of 1.5 to 2. If you find software that gives more then 2 or 2.5, please grab them immediately. You will never loss out on this measurement.

Simulation period

The strategy tester can define custom simulation period and it is suggested to have at least 1 or 2 years of back testing performed by the strategy tester. As Forex trading involves fundamental trading and news releases that will move prices, using at least 12 months or more will make sure the software is tested for all yearly releases from major government organization and ministry.

Total trades executed

This is similar to the simulated data used. Total numbers of trades are expected to be more then 50 or 100 in order to ensure that your program works without much error. Those software that uses scalping strategy and martingale system would yield more trades then those software that trigger using hourly or daily chart and bars. But 50 trades is a good rule of thumb for software program.

Maximum Draw Down

When the program is trading, any point of time by calculating the existing trade account minus the lowest floating account, this is the Draw Down and for all the time, the lowest point which is the maximum draw down is desirable to be smallest, which is less then 20% at all times. This indicates how your trading account will float to the lowest and how you calculate your margin call required. A high draw down will required you to have a bigger margin to avoid margin call.

In summary, look for expert advisor software that gives >20% ROI, >2 Profit factor, >1 year simulation period, >50 trades and <20% maximum draw down.

source http://www.evancarmichael.com/Business-Financing/7136/Which-is-the-most-popular-forex-expert-advisor.html

Douglas uncovers the underlying reasons for lack of consistency and helps traders overcome the ingrained mental habits that cost them money.  He takes on the myths of the market and exposes them one by one teaching traders to look beyond random outcomes, to understand the true realities of risk, and to be comfortable with the "probabilities" of market movement that governs all market speculation.

Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude Click here to read amazon 244 customer reviews.

Trading for a Living Successful trading is based on three M's: Mind, Method, and Money. Trading for a Living helps you master all of those three areas:

* How to become a cool, calm, and collected trader
* How to profit from reading the behavior of the market crowd
* How to use a computer to find good trades
* How to develop a powerful trading system
* How to find the trades with the best odds of success
* How to find entry and exit points, set stops, and take profits
Trading for a Living helps you discipline your Mind, shows you the Methods for trading the markets, and shows you how to manage Money in your trading accounts so that no string of losses can kick you out of the game. To help you profit even more from the ideas in Trading for a Living, look for the companion volume--Study Guide for Trading for a Living. It asks over 200 multiple-choice questions, with answers and 11 rating scales for sharpening your trading skills. For example: Question Markets rise when
* there are more buyers than sellers
* buyers are more aggressive than sellers
* sellers are afraid and demand a premium
* more shares or contracts are bought than sold

* I and II
* II and III
* II and IV
* III and IV
Answer B. II and III. Every change in price reflects what happens in the battle between bulls and bears. Markets rise when bulls feel more strongly than bears. They rally when buyers are confident and sellers demand a premium for participating in the game that is going against them. There is a buyer and a seller behind every transaction. The number of stocks or futures bought and sold is equal by definition

 

Trading for a Living: Psychology, Trading Tactics, Money Management Click here to read amazon 229 customer reviews.

Expert tactics to become make the most of every swing trade
In Mastering the Trade, veteran trader and educator John Carter shares his hard-won five-point technique for successful swing trading. In addition, Carter helps you move to the next level of confidence by explaining how markets really work and detailing behind-the-scenes market mechanics.

Mastering the Trade: Proven Techniques for Profiting from Intraday and Swing Trading Setups (McGraw-Hill Trader's Edge Series) Click here to read amazon 116 customer reviews.