First thing you need to do on how to create a Forex robot
If you’ve done a research about Forex trading systems, you will find out that there are tons of strategies out there.
Some are automated, others are manual or semi-automated.
Unfortunately not all authors or developers are successful traders and not all successful traders write about their strategies.
Since the forex market allows trading 24 hours a day (Mondays to Fridays), unlike many other markets, the question is; when do you think your opportunity to trade will come?
You can’t stay glued to your computer screen 24/7 for 5 days and that’s why you should consider learning how to create a forex robot and or turning your trading idea into a robot or semi-automated robot.
How to Start
There are so many things to take note when crafting your trading idea and turning it into an automated trading system. In this article, I have summarized the 4 most important steps on how to create a Forex robots below;
- Determine your strategy and approach
- Try it manually (Forward test the strategy)
- Paper Trade (Back test manually)
- Now turn your trading idea into a robot or semi-robot
STEP 1: Make a Decision on the Strategy
This step is the foundation. what approach or strategy will your robot be built on. There are many strategies, but I will mention few here.
- Strategy Based On Mathematics: This approach depends on just math.
This type of strategy depends on historical data of what has happened in the forex market. This type of approach strongly advocates that the market is being managed by a model.
- Price Patterns or Actions: This approach involves support and resistance patterns, the triangle and so on. The only problem I see here is that different traders see things differently. Your support line may not be my support line.
- Meta-Trader Indicator: This approach involves making use of the indicators on the Meta-Trader platform to develop strategies (either moving average, stochastic or others). This Meta-Trader indicator is used to check for trends, breakouts, overbought level and so on.
- Ready Made System: This approach involves using ready-made systems by making a purchase to learn from how the system works, analyzing it, and improve on them to make a better system or strategy.
- Custom Indicators: This involves downloading free custom indicators or purchasing them, and then turning them into a robot by following the colors or arrow they paint to place a trade.
In conclusion, your first step is to develop your strategy by deciding on any of the approaches you prefer, including the time frame that suit your trading strategy.
STEP 2: Try It Manually (Forward Test)
After crafting your trading strategy, it won’t be the best, to quickly move to the 3rd step without testing your strategy.
You must first trade with what you have crafted out.
You need to look closely at the performance of your new strategy. I used the word “CLOSELY” because your strategy rules may include two time frames, so you need to make sure you watch them closely.
Also, the custom indicator you purchase or downloaded freely may sometimes repaint, so you need to see this yourself.
So try it yourself and analyze the management rules you included when developing the strategy.
(The management strategy could be trailing stop or closing part of your profit depending on what your whole trading idea is all about).
STEP 3: Paper Trade (Back Testing manually)
This step is strenuous because you need to start looking at your chart by going backward and forward for months and even years.
Yes it is stressful, but you need to take the pain to do this because you have to be sure of what you have crafted out.
You need a paper and a pen because your strategy can’t trade on its own yet, so you need to look at the chart by scrolling backward and forward to see where your rules are met, you also need to open the positions on the paper and close them.
At this point, you need to be sincere with yourself because if what you write on paper are only the positive results and you shun the negative results, then you will definitely have your hurrying attitude hunting you as you’ll start to lose money in reality.
Note: Back testing on paper can never be accurate like automation.
Let’s quickly go through the last step.
STEP 4: Turn Your Idea Into a Robot
This is where you might need to contact me.
Some traders like it when their whole strategy is automated as a full trading robot, and some need the robot just to send them the signals so that they can trade it manually (semi robot).
Either ways, my years of professional EA coding can be a game changer for you. I am here to help you turn your manual trading strategies into a robot.
After turning your idea into a robot, I will also advise you to back-test it to see if the robot is following your rules.
And you need to also forward test it.
You will see for yourself how your EA works, checking results in real time including a graph to show how your robot is doing.
You can even do this for 10 years without sitting in front of your computer.
Then the wise thing to do next is to try it on your demo account before going live.
Other important terms are:
Manual Trading
This means a trader opens and closes a position by himself.
Trading manually requires a lot of time and attention, because a trader must follow his strategy diligently without missing a single opportunity.
Missing a single opportunity may affect a manual trader’s account either positively or negatively.
Another problem is emotion; you can’t get rid of it completely when trading manually.
Automated Trading
This means opening and closing positions without human intervention and still following the same rules defined by a trader.
It has many benefits like;
- Automated trading saves a trader’s time, no need to monitor the screen.
- It takes your emotion out of trading by allowing the robot handle the work of closing and opening the trades.
- The robot will always track all opportunities since it is tracking all market movement 24/7 for 5 days.
- Another good thing about a robot is that you can turn it off or on; it all depends on what you wan
The question is; do you have what it takes to make your robot be actively connected to the internet for 24 hours for 5 days?
You can’t and that is why you need a VPS.
This is a virtual computer that enables your robot to track all the opportunities in the market. Check out the list of best vps hosting that I recommend.
I hope that you find this article informative and as a guide to turning your manual trading systems into an automated trading system.
Got any question?
Please use the comment box below and you’ll get a swift reply.