In this lecture, we will show you how to download and install MetaTrader 4 for Mac and Windows for free, which is the first important step in algorithmic trading.
And I have selected to use MetaTrader because it’s one of the most popular platforms for algorithmic trading and for manual trading.
Most of the brokers provide it and most of the traders use it. It is free. This is very important because if you are a beginner and just want to practice on a virtual Demo account you can do it for free. You have actual access to the market. You can open and close trades and you can trade with Expert Advisors for free. No charges from the brokers.
This is another important thing. You need to choose your trading broker. Now, there are thousands of brokers, regulated, non-regulated. There are of course these scam brokers that do not offer really the services they promise. And in our forum at EA Forex Academy, we have one topic that will teach you how to stay away from them.
The forum.
Choosing your broker before downloading MetaTrader on Macbook & Windows
Please spend like 5 minutes reading the information in the Forum before you download MetaTrader 4 for Mac or for Windows. It will be very useful for you if you are choosing your broker for the first time.
So make sure when you’re choosing your broker to choose a broker that is regulated, that has no bad reviews over the internet, it has low spreads and commissions which is essentially important when you are trading with Expert Advisors. Now, for the very beginner traders when we use Expert Advisors and when we are trading with brokers we do CFD trading.
This is called Contract For Difference so no matter what you are trading, be it Forex, be it cryptocurrencies, be it commodities, stocks, we use CFD trading. Simply said, this is a contract with the broker that they will execute our trades and if the price goes in our direction they will pay us the profit.
If the price goes against us, of course, we will have a loss. But we are not actually buying the asset physically, we are trading on the value of the asset. And this is how the Expert Advisors work and this is how Meta Trader works. And most of the brokers and traders use CFD trading.
From the MQL5 website, you can download for free MetaTrader 4 for Mac. So once you choose your broker, what you need to do is to download the platform and it will come probably by email after you register for a virtual account. And then you will see it in your Downloads folder.
Keep in mind that MetaTrader 4 is not very friendly with Mac OS. This is why you need to look for the Mac version. And not all of the brokers offer it.
If this does not satisfy you, there is another way to download and install MetaTrader 4 platform on your Mac for free.
It’s not an easy thing to download MetaTrader 4 for Mac. But when you do it 1-2 times, it will become easy.
For those of you who wonder if they need mac or windows PC for MetaTrader. The answer is simple
Download & Install MetaTrader 4 on Windows
You need to click on the setup icon. Double-click on it and the installation starts. So there are some terms and conditions and I click on Next and it starts to install the platform. So it is very similar to any trading broker. It doesn’t really matter where you will download it.
Meta Trader 4 setup.
Click on Finish and automatically will open the MQL5 website which is the official website of MetaQuotes company that developed the platform. And actually, if you want to download Meta Trader for Mac or Win from the official website you will not find it because they want to push the traders to use Meta Trader 5.
But most of the traders still prefer to use MetaTrader 4. I personally prefer to use it. And if you want to use MetaTrader 4 you need to download it from the broker that you have selected to use.
Download the free MetaTrader 4 PDF guide
Demo or virtual account.
I will enter the login number and as well I will enter the password. And I click on log in and I will be logged in into the account. So for the very beginner traders, when you install it for the first time, you will see some charts that are opened with some assets over here.
The Demo account.
But we can change all of that. When you are done with downloading and installing MetaTrader 4 for Mac or PC you can open a $10,000 account. This is a virtual account, a Demo account for the demonstration of the system. And I always suggest my students first test it all on a Demo account. It doesn’t matter what strategy, it doesn’t matter what system.
Always test it first on a virtual account so you will not be risking any real money until you are satisfied with the results and you feel comfortable with the trading system. So here I have opened EURUSD, the Gold, some indexes, USDJPY, and AAPL. And all of that I can just close or I can change to other assets.
For example, if I want to trade the NZDUSD, I can catch it from the market watch. I can just drag it over the chart and the NZDUSD will appear on my chart.
The chart.
Understanding the platform’s basics
There are some indicators that came by default and in another lecture, I will show the very basics of MetaTrader, how to remove indicators, how to insert indicators, what is the market watch, the navigator, the terminal. Very simply, the basics of this platform are for the people who didn’t use it, and for those who already have the experience you can simply skip the next lecture and continue with the course.
So this is how you can download and install MetaTrader 4 for Mac or WIndows. Just a couple of steps and you have it installed for free on your trading machine.
When it comes down to the fundamental principles of successful Forex trading, a Forex trading system that is your own is crucial. Yes, you can copy others but remember this, Forex is an emotional game. It requires emotional maturity and self-control especially over strong emotions such as F.O.M.O. If you are not in the right space of mind, you could and will lose a lot of money.
FOMO is abbreviation of “Fear Of Missing Out”
Automated trading systems, Robots, or Expert Advisors – whatever you want to call them are almost all based on a specific trader’s appetite; you could get lucky and make money with their trading system for Forex.
In fact, for more advanced Forex traders, we encourage you to copy their Forex trading systems but as a beginner, we highly advise you not to!
The last thing you ever want to experience is this incredible emotional breakdown that happens to those that tried and failed just because you had “had a feeling” that “this would be it!” This is it! It is the worst feeling in the world, trust me! Imagine, you were on top of a very tall tower, you were confident that you were safe – only for someone to take away a small brick, and see you come tumbling down as if you were nothing.
Listen, as much as we would love for you to make money this very instant. The reality is, Forex is a long-term game.
In order to be really successful in this, to achieve the freedom, the lifestyle that you want; it’s going to take patience and experience. We want to help you gain that experience without going through the pains, the mistakes that are sometimes so bad – they could literally destroy a young trader ambition for his/her future.
All Types of Forex Trading Systems
A Forex trading system is essentially your mindset or your process coupled with your strategic indicators for execution where when you see a signal in the market, you will either buy or sell a currency pair.
Think of it as you being in Iron Man’s helmet, there’s a central target i.e. the Forex global marketplace, and on the side panels are your indicators such as your RSI (Relative Strength Index), Bollinger Bands, and Moving Average – these give you a ‘go’ or ‘stop signal to enter or exit a trade.
Two Important Questions to Ask Yourself First:
Question 1: Are you a more active trader? In life, are you a steer, straight-forward person? Does the thrill of potentially earning x10 your investment gives you an adrenaline rush or joy?
If yes, then you are considered an aggressive trader or “high risk.” You have the potential to earn or lose 10x of your investment in a very short amount of time.
Question 2: Are you more of a passive trader? In life, do you choose the safer route? Does it give you assurance and comfort that what you choose is safe and sure?
If yes, you are what most traders are called “passive.” You are in this for the long term, you want stable, increments of consistent profits over the years. Generally ideal for mechanical system users.
When you have identified which personality type you are, you can now more confidently build your own Forex system based on either your own appetite, one of the systems below, or a combination of all of them:
Mechanical Systems
A Mechanical System or what some call systematic trading is a process full of rigid rules and signals. Its purpose is to remove the need to guess or predict where the market is heading. Here’s an idea of what rules and signals look like:
Buy when a fractal candle closes because this is telling you the direction of your target’s price or market.
Place stop-loss above the mark where a recent swing high has happened.
Buy at-market value when a target’s price goes above the 100-day moving average.
Another rule: Buy at-market value when the RSI goes below 25.
And at last: Buy at-market value when a 5-minute candle closes just above your wedge pattern that has been confirmed with the increase of volume.
Compared to a discretionary system that requires you, years and years of pattern-recognition, chart time, and actual hands-on experience. A mechanical system uses rigid rules and signals to remove uncertainty, intuition, or “best-guesses” meaning does not relate to context such as announcements, fundamentals, speculation, or new.
Advantages of a Mechanical System
Safety: with that rigid rules and signals that you’ve placed. This cancels the need to guesswork a potential opening of the market.
Active Automation: those “rigid rules and signals” can easily be expanded or removed. And it’s easy to efficiently backtest your mechanical system.
Fixed Risk: because of all the work that you’ve put in, the restrictions and signals. You know how much risk there is and your chances of profiting. Imagine, knowing you will only lose 20% and win 80% of your trades.
Emotionless Trading: arguably one of the biggest advantages of mechanical systems is the ability to turn off your emotions and trade like a Robot. No emotional swings, no drama, no lack of sleep affecting you. Just you and your profits.
Disadvantages of a Mechanical System
Incorrect Backtesting: the major of Forex traders do backtest correctly. If you want to accurately produce results for your backtesting, use data.
Forex Volatility: the “rigid” rules and signals that you have set up are not permanent, most rules and signals must be changed every now and then.
Constant Building of Mechanical Forex Systems: due to the Forex market’s nature of always changing, you will constantly have to build or rebuild your mechanical systems. Some find this difficult whilst others love this process.
Discretionary Systems
A discretionary Forex trader constantly uses and analysis fundamental factors that may affect the price of a currency. Fundamental factors such as central bank announcements, job statistic announcements, new monetary policies, the major events or news that affects your targeted country’s economics and geopolitical influence, living standard, climate, and other various factors.
Forex Analysis
As a discretionary Forex trader, whenever you open position on a currency or commodity; the position was based on the context of your targeted country’s status usually on a long term perspective. Here are some example of discretionary trading:
Example 1: The United States imposes strict tariffs on the European Union, making it incredibly expensive for businesses to import and export commodities. What impact do you think it will have on the EUR/USD pair? Based on fundamental research, years worth of research, historical reactions, and more – how has the market generally reacted to such a restriction?
Example 2: When a global event such as a worldwide pandemic has happened, which has destroyed the livelihood of thousands of brick and mortar businesses, has put thousands if not millions of workers out of jobs, and restricted supplies and movement.
Again, based on historical data, how has the market reacted? What is the general timeline? When is the peak? When is the recovery period? How has the market reacted in the past to the recovery period? Is it positive or negative? If it’s positive, by how much? 300 PiPs? 2,000 PiPs? How are commodities such as gold reacting? And so on, and so on.
Historical Data for Forex Trading System
Think of it this way. Compared to a Forex trader that uses a mechanical system that scalps the market for short-term gains. A Forex trader that uses a discretionary system, is someone who is in this for the long-term haul. This is essentially your career. More or less guaranteed you will be a multi-millionaire by the time you retire.
Advantages of a Discretionary System
Experienced Based: The fact that you are using fundamental factors and experience gives you a higher chance of success.
Easily Adaptable: You can change your strategy. You’re still making consistent profits but now, you’re slowly incrementing that.
Secret Insights: Due to the simple fact that you are researching and learning decades of knowledge, market fluctuations, and market reactions – you very oftentimes discover patterns in the market that know and nobody else.
Disadvantages of a Discretionary System
Judgment Based: A discretionary system cannot be automated or backtested easily. There must always be a decision based on judgment to be made.
Difficult to Master: You need years of experience full of failures and successes to confidently develop a discretionary system that tracks potential profits and losses in advance especially in the early stages of a decision.
Automated Forex Trading System
An automated Forex trading system, some may argue is just another version of a mechanical Forex system but it isn’t. It’s more.
Not only do you add factors such as more Expert Advisors and/or Robots meaning you copy their systems, regardless of whether they’re active or passive, and add them into your own.
It is a fact, that 75% of all Forex trades are done automatically.
Despite many amateur Forex traders considering this to be a risky system with multiple built-in mechanisms to signal market entry and minimize losses. You stand to gain more than lose just like the retailer brokers who all use some form of automation and A.I.
Advantages of an Automated Trading System
Control: You reduce if not minimize your emotions when trading. You get to be more fundamental, more analytical in your decisions compared to impulsive, amateur decisions.
Wide Perspective: Due to the nature of automated Forex systems, it is a requirement that your research, data, rules, signals are 100% absolute with no potential for misinterpretations.
Remember: a machine does not have emotions, it will never make guesses. You must tell it what to do.
Self Discipline: By definition, your automated Forex trading system has self-discipline. It will never be affected by a volatile market. Also, it cannot feel extreme emotions such as F.O.M.O. or be greedy. It will always follow what you told it.
Entry Speeds: When a signal hits, it will automatically enter the market. You don’t have to worry about missing out on PiPs because your computer lagged at the last minute. It will enter for you, it will stop for you and it will protect you.
Disadvantages of an Automated Trading System
System Failure: By system, I mean, is the trading platform that you are using server-based or online – or are you on your computer and you’re essentially streaming data to the server.
Imagine, you’re streaming and you lost your connection and there was a sudden, massive spike in the market.
Must Be Monitored: It can be annoying to “babysit” your trades as there’s emotion involved in it as well as added stress to hardware malfunctions such as power loss, your computer crashes or connectivity issues.
Constant Optimization: It’s a very volatile market and you need to always tweak your automated system to match the volatility and potential spikes.
How Do You Build Your Own Forex Trading System: A Step By Step Guide
As a general rule, we advise young traders to always start using a mechanical Forex system. This will give you the experience that you need to start mastering fundamental Forex skills necessary for large transactions. It will also give you the time to develop your analytical skills when it comes to Forex trading signals.
General rule 2, tame your psychological barriers as soon as possible. It’s not a joke. Emotions such as fear, greed, anger, or a combination of all of those can literally destroy your career as a trader. This is why a lot of Forex brokerage and Forex traders all recommend you use a demo account. This will allow you to feel the extreme effects of those emotions.
Step 1: Choosing Your Ideal Time Frame
Time frames refer to the trading windows of 1 minute, 5 minutes, 30 minutes, 1 hour, 1 day, 1 week, 1 month, and years. Remember the active and passive trader section above?
If you’re active, you’re usually using time frames of 1m, 5m, 30m, 1hr. This means you are looking for fast, turnovers of your money.
If you’re passive, you’re using time frames of 1d, 1week, 1 month, and years. This means you’re what they call a “day” or “swing” trader.
Step 2: Use Indicators that Help You Identify and Analyze Trends
Indicators such as Stochastic, RSI, ADX, Ichimoku, MACD, etc – as a general rule with indicators, limit them to 2-5. You do not want to be overwhelmed when it comes to making a decision.
If you try and use more than 5 indicators, you will experience analysis paralysis.
Step 3: What’s Your Risk Factor
How much are you willing to risk? While Forex isn’t gambling, there is an element of chance in it. Let me ask you if you only had $1,000 to use as your Forex money. How of that are you willing to lose? $200? $500? if it’s only $200, this means you are willing to risk 20% of your overall money. Now, as a general rule to the actual trading, most agree that you should only risk 1-2% of your money per trade.
Step 4: Entries and Exists – Risk/Reward Ratio
Now, this depends entirely on your appetite. Some traders love to enter at the open of the market. Others like to trade when they receive a good signal and some want very clear indications meaning very near their resistant, support levels. as a general rule, the risk/reward ratio should be 1/3 if not 1/4.
Step 5: Rules are Your Laws
Never, ever break your rules. Consider them to be your laws, if you disobey – you will be punished. This is not to insult you, but we have seen so many traders set up these fantastic trading rules and signals only for them to break during a crucial, emotionally-fueled trade. Listen, Forex is making consistent profits, not a one-time transaction. Incremental, consistent profits are key to your success as a Forex trader.
How Do You Automate a Forex System
Now that you’ve built your very own Forex trading system, composed of your appetite and fundamental processes of a mechanical or discretionary system (or combination of both) – you will need a program, a software to create Robots and Expert Advisors that will all follow your commands and never fail in their execution. No fear of losing out of trades based it’s online, no risk of hardware malfunctions.
This is software is the result of over 15 years of practical experience in building software that helps you not only automate your trades but actually helps you build the Expert Advisors and Robots that you need using real-world historical data.
And all the charts, stats that you will ever need with an intuitive, for non-programmers, easy to use, and easy to export 100% native MQL code that’s fully compatible with your trading platform such as MetaTrader.
If you are looking for a software that builds your automated Forex trading system, fast and easy then EA Studio is for you. It took out all the guesswork, the frustrating, confusing language and transforms it into an accessible, easy to use, and intuitive platform. With just a few clicks you have your automated Forex trading system, full of all the Expert Advisors and Robots that you could ever want.
And as always, as part of our commitment to your success, if you encounter problems, issues, or difficulties in using the software, we have a reliable support team, that’s ready to help you 24/7.
Remember, our goal here is to help you make money by building the necessary skills that you need and by guiding you on what to do and what not to do in certain scenarios.
Conclusion
Now, wait! I know you can feel it.
This burse of confidence that you feel because you have just learned how to build your very own Forex trading system. While that’s great and all – if you don’t have a solid foundation on the basic principles of Forex, everything that you have just learned, will not work and you will join 65% of all traders that have failed.
Again, our goal here is not to destroy your confidence, we want you to succeed. We want you to make money as fast as humanly possible but we want you to do it right!
No shady tricks that if you do this, you’re guaranteed to make money – if you want to be a long-term profitable Forex trader, for yourself or for your family – you need to have the foundational skills that all expert Forex traders have.
Remember the tower that I illustrated at the beginning of this article, remember the brick? That even if you feel you are the most secure, safe at the top of the tower meaning your trade. Someone can easily just take a brick and see you come tumbling down as if you were nothing. This is the reality of the volatility of the Forex global market, you can make $1,000 in an hour but you could lose that $1,000 if you don’t have your basic, fundamental principles in check.
Here’s the best Forex advice we can give you. Take everything that you have learned here about Forex trading systems and all the basic fundamentals of Forex found here on our website then:
Open a demo account, familiarize yourself with trading itself, and the trading platform that you are using. Everything from menus, buttons, indicators, oscillators, and more.
Use the Forex strategies that we have here on our website or Google ‘Forex Strategies’ – pick 1, and experiment with it to its fullest strategic potential with varying scenarios of difficulties, situations, market announcements, and more.
Once you gain the necessary experience; now, do it for real. Use your money and trade Forex currencies.
With the real-world experience that you’ve gained, build the Forex trading system that you feel comfortable with and automate.
As a general rule, we advise young traders to always start using a mechanical Forex system. This will give you the experience that you need to start mastering fundamental Forex skills necessary for large transactions. It will also give you the time to develop your analytical skills when it comes to trading signals.
Hello, dear traders, it’s Petko Aleksandrov and in this article, I will show you how to install Expert Advisor on MetaTrader.
I will place Expert Advisors on the MetaTrader platform, and I will show you how to trade with many EAs and not just with one.
The Expert Advisors
I have 50 Expert Advisors in MQL4 format because I am using Meta Trader 4.
Avoid trading much at the end of the year
Often I receive the question if I trade with the EAs all the time. I avoid the last 2 weeks of the year to do any trading. I mean I trade but with much lower size. Only the Expert Advisors that I have tested for a long time and they work for me even at the end of the year.
But when I am testing new Expert Advisors or doing my regular trading, I really avoid it at the end of the year. First, because I want to take a rest and not think about trading. And second, because at the end of the year there are these random and unexpected moves, I can say, on the market due to huge transactions that are happening between the huge companies, the Interbank market which we talked about at the beginning of the course.
And basically, this is not a good time when you want to be on the market. This is why I leave just my top Expert Advisors but with lower volume as well. And if you wonder what these transactions are I will give you one example. Let’s say you are a British company working in the US and at the end of the year, you want to take your profit back to the UK.
We can not interact with these huge movements.
I am talking here about the huge companies that have millions or even billions of dollars of profit, and they will exchange that into Pounds. And this huge transaction will affect the price of the GBPUSD, for example. And all of these transactions, first, we don’t see them. Second, we don’t know when they happen. And third, we don’t know in what direction they will affect the market.
So, once again, I prefer to stay out of the market with my normal trading. I leave a few Expert Advisors trading during this time when I am having my holiday. So now I will show you how to place
Copy the Expert Advisors
If you have any of my courses, you will find the EAs attached, and I provide PDF with a detailed explanation of how to install an Expert Advisor on MetaTrader.
So I copy them, then I go to File, Open Data Folder,
Go to File then Open Data Folder
and then MQL4,
MQL4
and then I go to Experts,
Experts
and this is where I will paste them. Once they are in here, I will close that folder, I will go to Expert Advisors, right mouse, and refresh.
Go to Expert Advisors and refresh
Compiling the Experts
This will force Meta Trader to compile these Experts. Because what I get is the code. I need to compile them as EX files which are the ready trading Robots. I click on Refresh and because these are 50, it will take a little bit of time. And here they are listed below.
The Expert Advisors
Keep in mind that if you are using MetaTrader 4, you can do this with the refresh method.
But if you are using MetaTrader 5, you will need to click on each Expert Advisor and compile it from the code. I just want to show you if I open the code of any of the strategies, there is the compile button and you can use that one as well.
The MetaEditor
But for MetaTrader 4 it works much easier when you refresh the Expert Advisors in your Navigator tab.
And this is one of the reasons why I use MetaTrader 4, it’s much faster. I don’t need to go through each Expert Advisor. After that, you will need to open 50 different charts for EURUSD. I know this is a little bit of work but you will do it just once. I did it before recording this lecture. So if I just scroll to the right, you will see that I have many EURUSD charts, exactly 50.
Right-click over the symbol and click Chart Window
Most of the brokers by default will put some indicators over it. You can either keep them or you can remove them. Normally, I prefer to remove them. I prefer to have a clean, empty chart in front of me and I don’t want to bother myself with the indicators.
So you can remove them. Right-click, go to indicators list, and you can select each one, delete, and you will remove them.
Removing the indicators
If you want to do this faster you can save it as a template. I have saved it as No indicators chart with a white background.
Save it as a template
So if I open one more chart and I go to this template, you can see I don’t have any indicators.
The template removes indicators
Now, one of the frequently asked questions I get is “Do I need to place the indicators over the chart when I am trading with Expert Advisors?” No, you don’t need to. The indicators are inside the code of the strategy of the Expert. You don’t need to place the indicators over the chart. What you need to place is just the Expert Advisor over the chart. Before doing that, make sure to enable the AutoTrading.
Enable AutoTrading
The Magic number is important when you install Expert Advisor on MetaTrader
Make sure it’s green and make sure you are on the right timeframe. So if you are trading H1 Expert Advisors, you need to have your charts on H1. And after that I have 25 for M15 and here are 25 for H1. So I will drag the first one over the chart and you will see the small menu where I have the Entry lots, Stop Loss, Take Profit, the indicator parameters, and the Magic Number which is a unique number for each Expert Advisor.
The Input menu
And we will use that later on to follow the results, I will show you how we do that. One-click, OK, and it is attached over the chart. You can see there is this small smiley face which means the Expert Advisor is attached and it’s working, scanning the market.
Small smiley face
Now, I will do this for the next one as well. You can drag it or you can double-click on it, it’s one and the same thing.
And I click on OK, and it’s attached. The third one, double-click, OK, and it’s attached. And if you’re doing it for the first time, it could be a little bit slow but the next time you do it, you will do it very quickly. The rest, I will leave it to you. It’s the very same thing. Open the chart, make sure it’s on the right timeframe. You can remove the indicators or you can keep them.
This is not important, it doesn’t matter. And then you just drag it over the chart or double-click on it and you click on OK, and this is it. I think this answers the question of how to install Expert Advisor on MetaTrader.
I will continue now with the rest and I will show you some trading results.
Thanks for reading and let me know if you have any questions.
In this article, we will talk about Forex Demo Account and why it is better to start trading with a Forex trading demo account first before you jump into investing real money.
Forex trading has inherent risks, no matter how experienced you are. Forex trading is the exchange of foreign currencies, and you invest some of your own money (and some time control much more than what you personally invest).
With every trade, you risk losing money if you make a mistake or do not predict the changes in the market correctly.
While this risk exists at all levels to a degree, there are ways that you can minimize the chances that you will lose money. Many of the things you can do to minimize risk happen before you ever even trade real currency such as completing personal research, taking a course on how to Forex trade, and opening an online Forex trading demo account.
Opening a Forex trading demo account is generally the final step before you start actual Forex trading. And it is one of the most important things you can do because practice makes perfect.
What is a Forex Demo Account?
In the 21st-century, online Forex trading by private individuals became more and more popular and along with it, online Forex demo accounts grew in popularity.
Today, they are a common and great first step for demo users, but they also work as a great tool for a variety of other people. It is important to fully understand what a Forex trading demo account is before you sign up for it so that it will be the most beneficial to you.
Trading with a Forex demo account
To learn about the specifics for a particular demo account, you will have to look into the company, but below you will find a general explanation of what a Forex trading demo account is.
Typically, Forex demo accounts are a way for new traders to test out the user experience, a variety of features, and perhaps a trading platform that is specific to that broker.
A Forex demo account is basically a simulation where you can practice Forex trading without risking any money.
You basically trade with fake money (the digital version of Monopoly money), but it runs through real-world market situations (perhaps even exactly what is happening depending on the service you use).
This way, you will be able to see exactly what makes you money, what causes you to lose money and the real risks of Forex trading. As you practice Forex trading, you should find yourself making more and more accurate predictions about the market and, therefore, not lose money (or, in this case, fake money) as often.
There are a few great reasons that a person will open and use a Forex demo account other than testing the features and user experience of certain brokers.
First, if there is someone interested in Forex trading, but they do not currently have the money to do so, they can practice with a Forex demo account until they do. This will give them the feeling of doing what they want to do and will also cause them to be much better prepared when they are actually ready to start trading real money.
Real money
Second, a person who has the money to invest but does not know how or where to start. The truth is, this is most, if not all, new traders. No matter how much research and knowledge they have, they cannot really know what to do until they start actually practicing.
In the beginning, they may find themselves to be wrong in their predictions more often than not and therefore lose money. It is so much better to do this in a Forex trading demo account than a real one.
Forex demo account gives the trader time to figure out what features, brokers, and platforms they want to use.
Finally, even a seasoned trader may use a Forex demo account to test new strategies. A seasoned trader understands the inherent risk that comes with every trade and they may also be trading with a lot of money due to leverage.
Testing strategies on a Forex demo account
For this reason, even if they have a real account, they may go back to using a demo account to test out a new strategy a few times before actually using it. If it goes well, they will start trading with it. If it goes poorly, there is no real harm done.
How Does Forex Demo Account Work?
For a long time, Forex demo accounts were not really a plausible option for traders. They had to jump headfirst into making trades with their own money.
But with the development of highspeed internet, online Forex demo accounts are now completely possible. Forex trading demo accounts are a simulation and therefore work like other simulations.
Trading with a demo account
It is code that mimics (or perhaps replicates exactly) real-time market conditions before and after a person makes a trade or, in this case, a fake trade. This simulation allows people to see exactly how trades would go without putting any real money at risk.
Each Forex trading demo account will probably work slightly differently from other Forex demo accounts, but there are some basics that you can expect.
First of all, you can expect to have access to fake money or simulated money. This may be limited to a certain amount, but it often is not because it is fake.
Trade with realistic amount
Either way, it is recommended to trade with a realistic amount based on what money you actually have, how much leverage you will be able or feel comfortable using, and the minimum deposit amount the broker you are considering requires.
You will also have access to information and charts that show the current market conditions, and you will then make your predictions on how the market will shift. You should learn about what shifts and indicators they are before you even open a Forex demo account.
After you make your prediction, you will begin to make trades. As you wait to see the results of your choice, you will be able to see if the strategy works with you or if you need to keep practicing before you start trading with real money.
Forex Trading Demo Account – Pros and Cons
Pros
It is cost-free.
It is a tool that is absolutely free for you to use and practice with. This is great, especially if you are new and are unsure of how much you really want to invest yet. It also opens Forex trading to a whole new group of traders who could not afford to do so before.
Risk.
The risk in a Forex demo account is a benefit in two ways. First of all, as mentioned above, there is no real risk of you losing money if you make a mistake or wrong prediction.
However, it still gives you a fairly accurate depiction of what risk lies in real trading. You will see accurate reports of how your trade would have worked out. You will be able to see the amount of money you are actually risking if you are wrong. This is not meant to scare you but rather help you make smart instead of careless trading decisions.
Learn the platform.
Whether you are new to Forex trading entirely or simply trying out a new platform, a Forex demo account will allow you to learn all the specific tricks and features of a trading platform.
If you are unsure which platform you want to use, opening an online Forex demo account will allow you to figure that out by practicing, which each one in question.
Experiment and learn the market.
A Forex demo account will allow you to practice Forex trading making predictions based on the market trends and specific indicators. No matter how much you research and learn about these things, there is no way to truly learn how it works without practicing.
You will learn how to great to volatile markets, capitalize on price fluctuations, and use strategies. As you experiment, you will be able to calibrate the strategy so that when you trade with real money, you can be confident that it will work.
Cons
Slippage.
When you are trading on the real market, you will come across something known as slippage. Due to the fast changes in the market, the price may change between what you see on your screen, and when you actually click to make the change.
This means that calculations may be harder in real situations then they are on a Forex trading demo account.
Money.
Often in a Forex demo account, you are able to choose how much money you invest, and because it is fake, you can trade with a lot more money than you will have when you start trading with your money. This can create an unrealistic experience, and therefore the practice will not be as beneficial.
Leverage.
Similar to the money you invest, some Forex demo accounts allow traders to trade with a higher amount of leverage than they will be able to use in a real account. Once again, this can create an unrealistic experience, and therefore the practice will not be as helpful.
Rejection.
Your trade will always go through when you are using a Forex demo account, but this is not always the case with real trades. Real trades can be rejected due to price changes and other factors. You need to be prepared for this to happen, even if it never does in your Forex trading demo account.
Tools.
Some brokers will allow users to use tools in their online Forex demo accounts that cost additional money in the real account. If a person begins to lean on this tool for help, they may find themselves unable to make good trades when they switch over unless they spend additional money.
Emotions.
There are certain emotions like fear, hope, and greed that are associated with Forex trading, but because of the knowledge that the money is fake, you will not experience these emotions, which can affect how you trade.
You will not be able to experience how these emotions can lead to you making costly mistakes. You need to learn how to control your emotions to be a better Forex trader, but you cannot practice Forex trading that with a Forex demo account.
Habits.
Because you know the risk is less, you may take more risks or start to over trade. while this is fine when you are not losing any money, it can cause you to form habits that will lead to loss when you start trading on a real account.
How to Open a Forex Demo Account
Below you will find some tips on how to open a Forex trading demo account:
When you open a Forex demo account, it is a good idea to open both a demo account and an unfunded real account. Preform a backtest and see if the results are the same if they are not the demo account will probably prove to be useless.
This is important because you will be wasting your time if you practice Forex trading with a simulation that does not show you accurate results as there is a chance that when you switch over, a strategy that worked in the Forex trading demo account could be devastating in a real one.
Practice Forex trading with multiple brokers.
Because Forex demo accounts are free, you can open them with multiple brokers. Knowing how to use several brokers will prove helpful if you ever need to switch in a hurry. It will also simply help you be completely confident in which broker you pick. You have to be selective in which one you choose because you are trusting them with your money. You should consider how they operate, the experience, the cost, the regulations, etc.
Look into what tools and features come with the level of account you plan to buy into.
Only practice Forex trading with those features and tools in the online Forex demo account so it will be an accurate and helpful practice. If you are unsure what level you really want to use, you can start by practicing with the base level tools and features and then slowly add more until you reach a point where you are happy with what you have.
Only trade with realistic situations.
This means that the amount of fake money that you trade should be realistic to what you could invest. It also means that you should trade with an accurate leverage amount. While it may be fun to pretend to trade with an insane amount of money, it will not help you become a better Forex trader unless you have said money.
MetaTrader Demo Account
MetaTrader 4 and 5 are the two most common platforms, so it is a good idea to practice Forex trading with those. Because they are so popular, most brokers offer options for both the MT 4 demo account and the MT5 demo account.
While the Forex demo account can be used for all those things, it can also be used as a tool to learn and practice Forex trading, even if you are already sure that you want to use the specific broker for whatever reason.
Moving to Real Money
You want to start moving from a Forex demo account to real money by assigning an amount that is above the minimum required deposit amount by your broker but that you can deal with losing.
That means you should not start by trading your entire life savings if that would leave you homeless or with serious problems if you lose it all. It can be helpful to do this before you ever even open a real account, and perhaps while you are still using the demo (or before).
After you assign the said amount, you want to open your real account. When you move to a real account, it can be scary because you will start to deal with real risks. Now you get to start practicing how to control those emotions to avoid mistakes. The only way to do this is to start trading.
Use all the skills that you learned while practicing on the Forex trading demo account, such as what strategies to use, how to make predictions, etc. and also pay attention to learn how you can control your emotions and avoid mistakes in the slightly different conditions of a real account.
Conclusion
Forex trading is a great option for almost anyone to make some money either as a side job or full time, but it is important to go about starting in the correct way. Using a Forex demo account is an important part of this process, just like Forex education through personal and guided research is.
You should spend plenty of time practicing with the Forex trading demo account until you are confident in your skills. Afterward, you can start trading with real money and leverage with confidence. Even then, you should return to the Forex demo account when you want to try a new, untested strategy to ensure that it works. This will protect you from unnecessary risk and loss, no matter what experience you have as a trader.
Forex trading can open up a whole new world of income for you. You could use it to supplement your current income and get to do more than you currently do or pay off debt. You can use it to gain the freedom to work from anywhere that you want.
No matter who you are or what your goals are, Forex trading could be a great option for you. Start today by opening your own FOrex demo account and before jumping into the real world of Forex trading.
Before you start trading Forex you need to have a general understanding of major terminology and the markets. The next step is to find a broker where you will place your trade. Then you need a device with a good internet connection where you will download the trading platform you prefer or the trading platform your brokers works with. After downloading the trading platform you have to open an account and fund the account. It’s better to start with a Forex demo account and practice Forex trading for a while before you open a real trading account and fund it. Once you’re confident enough you can place your first trade on the live account.
When you open a Forex demo account, it is a good idea to open both a demo account and an unfunded real account. Preform a backtest and see if the results are the same – if they are not, the Forex demo account will probably prove to be useless.
Forex stands for foreign exchange, and therefore online Forex trading is the trading of foreign currency. This kind of trading has gone on for as long as there have been different states with different forms of currency.
For most of history, Forex trading has been something that only happened between states and banks when various different states would exchange goods.
Different currencies
That kind of trading still goes on today. In fact, online Forex trading takes place any time you make a purchase from another country as the money you pay has to be traded for/converted into the currency that the country you are purchasing from uses.
Where in the past, Forex trading was always a physical exchange of currency, today there is an online market that anyone has been able to use since the end of the Brenton Woods System.
Through this online market, anybody with an internet connection, device, and a little bit of money to invest can try there hand at online Forex trading to make a profit. But how exactly does that work?
When you begin to partake in online Forex trading, you will invest a certain amount of money into the process. Depending on the broker you use, you will be able to control a certain total of currency based on the amount that you were able to invest.
Broker and online Forex trader
With some brokers, experienced traders can control a large sum of money with little investment of their own. Now, with that money, the trader will trade with a certain currency pair. For example, a person could trade US dollars and Australian dollars and then eventually trade back again to US dollars.
At first glance, it does not sound like someone could make much or any money doing that. Actually, when someone learns how to understand the market, they can make a significant sum.
There are two main ways that this happens in Forex trading.
The first way has to do with the interest rate. With this method, a person trades at a certain interest rate. When the interest rate shifts and they trade back, they earn or lose, depending on the circumstances, the difference. The trader’s main goal is to buy at a high-interest rate and then sell when it shifts lower.
GBPUSD M15 trading chart
The other way a person can make money with online Forex trading is by buying when the exchange rate is one ratio and then waiting until it shifts to a different rate that benefits them, and making the trade again.
For example, if a trader has US dollars and trades it for Australian dollars when the exchange rate is 1:1. They will then wait until the exchange rate shifts to make the trade again. If they predicted the market correctly, the shift would benefit them. For example, it may shift to 1.5:1. That means that when they trade back, they will make fifty percent more than they originally invested.
These shifts in the exchange and interest rates are happening all the time, though not always that drastically.
It is important to know that with either method, there is risk involved, especially if you invest a large sum or use a lot of leverage.
Skilled Forex traders get pretty good at predicting which way interest and exchange rates are going to change and are then able to make good investments. But there is always the chance, especially in the beginning, that the market will not shift in the way that you expected it to, and you will lose money.
That is why, in the beginning, it is best to start out small and use all the tools and resources you have available to you to make the best decision.
How to Start with Forex Online Trading
Online Forex Trading Education
Before you even begin to partake in online Forex trading or even pick a broker, you need to spend some time getting educated on the subject.
As mentioned above, every time you make a Forex trade, you are dealing with a certain level of risk.
Just like the saying says, bigger risk can mean a bigger reward. If you do not understand the risk you are taking or the grounds that you are making your predictions on, you are likely to run into problems that will prevent you from making money and may even result in you losing money.
Depending on how much you invest and how much leverage you use, you could end up losing a lot of money. As you research and learn about online Forex trading and the Forex market, you will be able to assess risk and make accurate predictions that could result in you making enough money to make Forex trading your full-time job if that is what you want.
When you begin to educate yourself, you can go two different routes.
You can educate your self by reading articles and gathering as much information as you can, or you can sign up for an online course.
If you decide to go the route of teaching yourself, there are lots of resources out there. You can read articles like this one, watch youtube videos, and purchase books or e-books.
On the other hand, if you decide to go the route of taking a course, there are many different courses that you can enroll in that will help teach you the craft even if you do not know anything about the subject yet.
At EA Forex Academy, there are comprehensive courses that have taught over 22,000 people how to trade Forex online.
But what exactly do you need to focus on learning?
There are two main things that you need to focus on learning before you even begin to practice on a Forex demo account. First, you need to learn the currency.
There are tons of currency pairs out there, so it will be hard for you to learn them all, but you can start by picking a couple that you plan to trade with and learn everything you can about them.
Forex Academy online trading courses
Figure out if those currency pairs actually make money and, if so, learn about patterns in their interest and exchange rates.
That leads directly to the second thing you need to focus on learning, market patterns. All of your trades will be made off of predictions you make about the market. You need to understand common market patterns along with indicators that could show a future shift.
Internet Connectivity
You can do this before, during, or after your research, but it has to be done before you start with online Forex trading. You need to ensure that you have a good internet connection and a device that you can use.
First of all, online Forex trading takes place online (obviously), so you need to have the ability to log on to your broker to see and make trades whenever you need. Sometimes trading is a quick thing, and if your internet is slow or your device is old and has a problem, you could lose out on money.
A computer used for online Forex trading
If you plan to make online Forex trading a job, you could start out with the device and internet you already have or buy a cheap one. Then as you make money, you can reinvest some of it into Forex trading and upgrade your internet and buy a better device. Some people prefer to have one device for their Forex trading and a completely separate one for their personal use.
If you do decide to make Forex trading your full-time job, you may be able to write off your computer or your internet on your taxes as a business expense.
Online Forex Trading Brokers
After you have done your research and have a device and internet, you can find a Forex trading broker to use. There are lots of options out there, and you need to ensure that you pick one that will both work for you and is safe.
The first thing you need to do is figure out what your trading style is or will be. You need to figure out how often you plan to trade (is it a hobby or a job), what time(s) of day do you want to trade, how much leverage do you want to be able to use, and what tools that you expect to have available to you.
As you look at brokers, you want to make sure that they offer everything that you need for your trading plan/style. After that, you should compare the cost. What commissions does the broker ask for, do they have a minimum deposit, what are their margin rates, what trading limits do they place on their traders, etc.
MetaTrader 4 trading platform
Finally, you want to make sure that the broker you choose is safe. There are different groups that regulate Forex traders that are divided into three tiers.
Tier one jurisdictions are generally the safest as there are the most regulations on what the brokers can do. However, some traders are willing to trust word of mouth and do not necessarily require tier-one supervision. You have to decide what you are willing to risk.
Open a Demo Account
Once you pick a broker, you should open a demo account. A demo account will allow you to practice online Forex trading without making any real investment. This can help you learn the broker or platform that you chose, as well as put all that online Forex trading education to test.
You should stick with demo trading until you feel confident in your abilities. No matter how much research you do, practice makes perfect, and you want to make sure that you know what you are doing before you risk your real money.
Choose the Right Online Forex Trading Platform
While you are using your demo account, you should figure out what trading platform you want to use.
The two most popular trading platforms out there are MetaTrader 4 and MetaTrader 5.
Most Forex traders use one of those two platforms no matter which broker they use.
However, there are various platforms out there, and many brokers offer their own platform that comes with certain special tools that MetaTrader 4 and MetaTrader 5 do not.
Whichever platform you end up choosing, you should practice with on your demo account before opening a live account, so you know how it specifically works.
Open a Live Account
Once you feel like you have a good handle on how online Forex trading works, you can open a live account. This is when you start investing and making trades with your real money.
Even though you have practiced on the demo account, you should still start with small investments and small leverage until you really get the hang on it. No matter how much you practice on a demo account, trading with real money will feel different.
Fund the Account
When you open your live account, you will have to fund the account. This basically means that you will have to put money into your account to trade. This may be all the money that you get to trade in the beginning, or you may get to start out using leverage depending on the broker that you choose.
Many Forex brokers have a minimum deposit amount for new traders. If this is the case, start with that amount and work your way up as you are successful and figure out the best techniques.
If there is not a minimum amount, start with an amount that you will be okay if you lose. You do not want to do something major like investing your entires saving account your first time trying real online Forex trading.
Enter Your First Trade
After you fund your account, you can complete your first trade. This trade can be both scary and exciting all at once, but as long as you did not invest too much money, it will be fine even if it does not go well. As you make the trade, trust your online Forex trading education and continue to learn as you go.
Forex Trading Robots
One of the nicest things about modern online Forex trading is that you can do it without even actually sitting at your computer. You can make robots that will do the trading for you and make money as you carry on living your life.
A Forex trading robot is basically coding that you can input a trading strategy into. You can then upload it to your broker, and the code will make the trades for you based on the strategy that you input.
This will both allow you to do other things than sit in front of your computer, and it will take the emotion out of it. When a trader (naturally) feels too much emotion as they trade their money, they are more likely to make careless mistakes as they think less logically.
Example of programming code
Even if you do not know how to code, you can still use Forex trading robots without programming skills. There are sites on the internet that will allow you to test and input strategies and then will make the code for you. Often, these websites will even offer classes and resources that will teach you how to use the robots.
Forex Trading as a Job
Many people use Forex trading as supplemental income on top of their regular job. This provides them with extra money to do fun things and travel; however, you can eventually make online Forex trading your full-time job if you want to.
Before you quit your regular job (unless you have plenty of savings), it is a good idea to practice Forex trading for a while. Figure out how it works and start making some money. Once you start making enough money, you can make Forex trading your full-time job.
Trading from home
If you decided to do so, you might want to invest in a good computer, good internet, and maybe some online Forex trading software that can help you make decisions (though what you really need is completely up to you).
There are many benefits to using online Forex trading as your full-time job. First, you will work for yourself, so you no longer have to deal with a pesky boss or annoying meetings.
Second, it is an online job. You will be able to travel wherever you want as long as you will still have access to the internet. Finally, you could end up making significantly more money than what you are currently making at your job.
Starting online Forex trading could also be a great option for you to try if you are currently unemployed and cannot find another job.
Conclusion
Currency trading is a great option for everyone to make a little extra money or start working for themselves. It is even easy for beginners to enter the field, but online Forex trading education is key before diving headfirst into forex trading.
Using online courses like EA Forex Academy makes that process easy. After that, it just takes a little bit of time on a demo account. And then you can get started making real trades and making real money.
If this sounds like something that you are interested in, do not waste any more time and get started today!
Forex stands for foreign exchange, and therefore online Forex trading is the trading of foreign currency through an online market that anyone has access to. At this online market, anybody with an internet connection, device, and money to invest can try making a profit with online Forex trading.
Before you begin with Forex trading, you need to have a good education on the subject to get familiar with major terminology. Then you need a good internet connection and a device that you can use for trading. After you got a device and good internet, you need to find a Forex trading broker to place your trade. Then you need to choose a trading platform where you will open your trading account. First, it is better to start with a demo account and once you’re ready and know what you are doing, you can fund the account and go live by placing your first trade.
Online Forex trading is the trading of foreign currency over the internet.
Robot trading software is the easiest way to build Expert Advisors and to automate strategies as Expert Advisors. At Trading Academy platform you can learn a lot – we have our courses, we have a blog that is absolutely free, the forum where you can ask any questions or meet fellow traders, there are very experienced traders there as well.
EA Forex Academy website
It is absolutely free if you want to ask any questions, and as well we have the software section where we have integrated 2 software programs for algorithmic robot trading.
One is Expert Advisor Studio, the other one is Forex Strategy Builder.
The 2 Robot trading software
What is Expert Advisors Studio?
Expert Advisor Studio or EA Studio is a robot trading software that sees a sudden rise in demand and is used to create and backtest trading robots for the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms.
The robots, also known as Expert Advisors (EA), trade automatically by following the parameters that you specify. Moreover, when the position is open, the EA can follow many close conditions including stops, trailing stops, and stops.
You can, for example, use EA Studio robot trading software to generate trading robots for many markets and assets. Most traders use EAs mainly for foreign exchange trading. However, you can use robots to trade with cryptocurrencies, commodities, stocks, and etc.
How does the robot trading software work?
Expert Advisor Studio works by enabling you to set the parameters by which the robot opens and closes positions – using lots of yes/no instructions to launch trading options. The software allows you to create a trading robot by yourself or import an EA created by another person.
By combining sets of yes/no instructions in a complex numerical model, the EAs can implement improved trading systems, using the computational ability to report – and track them – instantly.
With EA Studio traders can backtest their trading systems against real historical data and see the graphs and details about this robot. You can create as many Expert Advisors as you need for your MetaTrader instance.
EA Studio is the fastest and most reliable robot trading software on the market. It is the result of 20+ years’ participation in making high-quality technical programming. It generates trading strategies written in 100% local MQL code. The program does not require external code and is integrated into MetaTrader without errors or warnings.
How EA Studio helps you win
Solitary expert Advisor can flounder in real economic situations. We make systems arrangements for each market (suppose 2, 5, 10) and put them all for trading at the same time. This is simply due to the severity of EA Studio. At the end of the week (or any other pre-defined period), we evaluate the presentation. Everything is equal. We fire those who fall and replace them with new ones we just made. We do not rely on a sole expert or a solo market because our own trading frameworks do not bound us.
Getting Started with Expert Advisor Studio
So these are professional programs that we use to create Expert Advisors and to automate strategies as Expert Advisors without programming skills. I will click on the first one, Expert Advisor Studio. So this Robot trading software is created by a third party company and we have integrated it on our website so it’s easier for our traders and students to use it.
And I have made actually a free course on how to use it.
Expert Advisor Studio
So all of the videos are free if you want to get into more details about this algorithmic Robot trading software. And, actually, you can use it for free as long as you want. You can generate strategies, you can analyze strategies, I will show you this later.
Enjoy a 15-day free trial for the Robot Trading Software
What you need a license for is when you are exporting the strategies as Expert Advisors, I will show that. And, actually, there is a 15-day free trial which you can use. During these 2 weeks, you can export as many Expert Advisors as you wish.
There is no limitation so it’s a great experience, I believe, for everybody if you just want to create your own strategies, test how it’s working, and basically work with such professional Robot Trading software will give you a much brighter idea of algorithmic trading. And it will bring you some new skills and knowledge for sure.
So let me just log into my account and I will go quickly over this software. There are many languages which you can switch to, of course, and as well on our website, we are working on translations now and having our courses translated.
The different languages EA Studio offers
As well, we are working on the captions a lot. So what is the basic idea of this Robot trading software?
The basic idea is that if you have a strategy, you can automate it as an Expert Advisor. For example, you can see below the strategy that I demonstrated to you in the previous lecture.
The strategy from the previous lecture
I have the RVI Signal, the Stochastic, and the Awesome Oscillator as an exit rule. On the right side, I see the Balance chart and on the left side, I have the Indicator chart.
Indicator chart in the Robot Trading Software
So if I click on it, I see details about where the trades were opened, where they were closed. We have a sell order. The RVI crosses the signal line downwards and at the same time, we have the Stochastic rising which we said is the entry for a sell.
The Indicator chart
The trade is open up to this moment.
So if I scroll it more on the left side, there are many different orders and executed trades. For example, we have a long trade. So if I have a green line below the chart, it means I’m in a long trade.
And if it is red like what we saw previously, we are in a sell. So when we have a buy, RVI crosses the signal line upwards, and Stochastic falls,
And this is what I told you when we are looking at the chart, it’s really hard to say if it is rising or if it is falling at a certain moment. But when we have the backtest, it is very clear to see where the trades open and close. As well, we have the Balance chart where we have different graphs and statistics,
The Balance chart
and the Journal which is very same with the Meta Trader.
The Journal
The backtest is what makes the Robot Trading Software unique
The statistics
This is what I really like about the Robot Trading software, we can see so many statistics from the backtest output where we can see things like Average position length, Bars in trade, and Maximum consecutive losses.
So we have just 3 Maximum consecutive losses with this strategy which is a little bit more of an advanced thing. And we have Maximum stagnation, Sharpe ratio, Win/loss ratio, and many other things.
We can see how this strategy performs during certain days, during the week, or how it goes by profit and loss in currency by weekdays.
As well, we have the Profit and loss in currency by hours. So this strategy is more active in the afternoon. This is like at the end of the London session and the beginning of the New York session with me.
And then we have the Profit and loss by exit out. So this is by entry hour, and on the right side is by exit hour. We have a Count of entries, profits, and other statistics which are very useful.
The indicators in the Robot trading Software
So what I was saying is that if you want to automate your strategy, simply you can place your indicators. I can put any other indicator and if I click on Accept, I see immediately the change in the Balance chart on the right side which is very useful. And if I remove any of the indicators, there is a dramatic change.
So you can put your Stop Loss, Take Profit, everything that you have in your strategy and you will automate it.
The strategy properties
This saves a lot of time compared to manual trading because if you have a certain strategy in manual trading and you want to test it, you will spend a couple of months to see if this strategy is profitable or not. And if it’s not you will just be losing your time.
While if you use such a Robot trading software, you put your strategy here, and you will see if this strategy is actually profitable or not. And, as well, here we have the chance to optimize the strategy, to use the Normalizer, something I will talk about in a separate lecture, and many other tools which give us the best parameters of the indicators.
You don’t need programming skills for you to code the strategy
As you saw, for example, I’m using the RVI with a period of 13.
RVI signal
And if I just close the RVI signal and I put it again, you will see which is the parameter by default. RVI signal, a period of 10.
RVI signal default setting
It’s not 13. So the software shows us which parameters of the indicators work best. After you build your strategy, with one click you can export the Expert Advisor for Meta Trader 4 or for Meta Trader 5.
Exporting the Expert Advisor
This is why I said you don’t need to have any programming skills. You need to open it with the MetaEditor and here it is.
The MetaEditor
This is the code of the Expert Advisor so you don’t need really to code this strategy by yourself. You don’t need to be a developer and you don’t need to hire developers which is the thing I was doing before I found out about the Strategy Builders and these 2 algorithmic Robot trading software.
So it is really easy to export the strategy as Expert Advisor, it is just one click. Of course, it takes some time to get used to the program and to learn how to build profitable strategies, and most importantly robust strategies that remain profitable longer in time. Now, if you don’t have any trading strategy in mind, if you’re just starting trading, you can use the Generator.
The Generator in the Robot Trading Software
This is a powerful tool in Expert Advisor Studio which will create strategies for you. But in order to use it, you need to export the historical data of your broker. For example, below I have much data from different brokers.
Different brokers
Please don’t take any of them as a recommendation, I just have imported them right here.
Thank you very much for reading and if you have any questions, of course, let me know at any moment.
In this Forex for beginners guide, if you have been struggling to find the best, clearest, ultimate guide to Forex for beginners then you just found it!
If you are new to the money market, you have probably heard of the term Forex trading, and you are probably wondering what it means.
Forex, also popular as foreign exchange or currency trading, is a global decentralized market where all the currencies of the world trade. The Forex market has an average volume that exceeds $5 trillion per day. This makes it the largest, most liquid market in the world.
A vast amount of foreign exchange is done for purposes that are practical. However, the highest number of currency conversion is done by Forex traders whose aim is to earn a profit. The amount of conversion of currencies taking part each day can cause extreme volatility in some currencies due to the movements in prices. This volatility attracts people to do Forex trading since the risk is high, but the profits are even higher.
First Steps in Forex for Beginners
Now, before we begin, let’s make it clear. Forex can be “easy money” or what some call “instant riches” ONLY if you have the right temperament for it.
The game of Forex is not just price action trading but is an emotional game of control and balance. If your mindset and your emotions are not right, you will lose.
Emotions in Forex trading
As a newbie in Forex trading, all this information can be a bit overwhelming. However, in this ultimate Forex for beginners guide, we will teach you everything you need to know to start with Forex trading for beginners, along with tips and mindsets to implement.
However, we are here to guide you through the stages of Forex for beginners, what to do and what to avoid, and the pros and cons of Forex trading. You want to be equipped with the necessary knowledge of currency to avoid losing money.
Risks to avoid, essentially a Forex for dummies guide; with all the skills, patience, application, and education that you will ever need to guarantee success.
The History of Forex
After World War II, the allied nations along with the rest of the whole world were either in economic collapse or just chaos, scrambling to make a living. Out of this despair, in 1944, a new monetary system, or “Bretton Woods System” came into existence. Its purpose was to stimulate trade and with efforts to stabilize the global economy.
Sample monetary agreement
The history of when the Forex system that we know today became official is a long, debatable topic for many. Multiple experts agree that it was in 1996 when retail Forex brokers were established or embraced by the public, 4 years after the signing of the Maastricht Treaty due to “Bretton Woods System” failing its purpose.
The Bretton Woods System
Bretton Woods System had failed in its monetary purpose or policies. Gold was the main reason why it had failed. Many nations took advantage of the system even one of the co-founding members. For more information about this, please follow this link.
In short, Forex is the modern barter system operating on limitless possibilities, when compared to old barter systems that take hours for a single large transaction to happen.
In Forex, multitudes of large trade transactions are done within an hour. Literally, millions of dollars are being traded on an hourly basis.
The total volume of money being traded in the Forex global market is roughly $4-$5 trillion dollars per day compared to a stock market where they trade around $200 billion dollars per day. The reason why the volume of money being traded in Forex is trillions of dollars per day is it operates 24 hours compared to 8 hours.
Traders just like you
Ordinary people looking for financial freedom, are achieving their dreams on a daily and weekly basis. When you read the section on risks, you will come to understand why trading Forex is both extremely rewarding and can be extremely devastating if not handled properly.
Major Forex for Beginners Terminologies
Aside from the basic terminologies such as currency pairs (two currencies paired together), you analyzing that your trade will go long (also called bull, going up in value) or short (also called bear, going down in value). Here are the major Forex for beginners terminologies that you must familiarize yourself with:
Trading Hours
While the Forex market operates in the interbank market meaning 24 hours, as a trader, you must understand how timezones work as there are currency markets that all Forex traders watch out for. The Euro, the U.S. Dollar, the Japanese Yen, the British Pound, the Canadian Dollar, and the Swiss Franc currency markets.
When you “watch out” for a currency market, it means, your Forex trading sessions must be done within your targeted currency market’s timezone. When two currency markets are reaching that prime hour when both markets are in full swing.
Different trading time zones
For example, if you live in France, you are in the Central European Timezone. Let’s say your target market is the United States whose timezone is Eastern Standard Time. You are ahead by 6 hours. This means:
France, 10:00 am is equal to New York, 04:00 am.
… the US financial market does not open until 08:00 am which means your trade starts at 02:00 pm.
Volume
Volume is basically is the complete tally or amount of money being traded on a daily basis. As of 2020, the Forex global market trades roughly around $4-$5 trillion dollars per day.
Volatility
In simple words, volatility means liquidity or fluctuation. And depending on your appetite meaning you are either an aggressive trader or a more conservative trader, you may trade currencies with massive spikes of volatility where, for example, you can make well over $1,000 in 30 minutes or loss $1,000 in 30 minutes.
PiP
To keep it simple, Points in Percentage is basically the number of winnings or losses that you gain. For example, if you open a trade on EUR/USD at 1.0000 and you close at 1.0100 – this means, you have won 100 PiPs and now, depending on your leverage, will determine what the worth of those “100 PiPs” are.
Leverage
Leverage is a bit confusing to simplify but in essence, it is the value of your money. Pip is sometimes displayed in a ratio of 2:1. This means that for every pip or point that you win, you get half your money’s worth. Remember that leverage or ratio, determines the value of your money. The ratio essentially cuts the value of your money.
In the example below, we are using the dollar as our example:
Your Leverage is 2:1
You Pip Winnings is 100
You Earn $50
… or another way to see it is, you take the total PiP winnings and divide that by 2. The first number is essentially the divisor and the last number is the dividend.
Don’t worry if you can’t understand this. When you start trading Forex, this will become very clear. It’s important to take this in now so that when you start trading, you will better understand how to maximize your FX trades.
Lot
Lots are used for trade currencies. Lots are batches of currencies whose job is to standardize Forex trades. The movement of Forex is usually in small amounts, but lots tend to be big.
One hundred thousand units of the base currency form a standard lot.
Therefore, since most traders cannot place 100,000 units of the currency they are trading on each trade, they opt to trade through leveraged products.
Forex Brokers
When learning about Forex trading for beginners, you must know what a Forex broker is.
A Forex broker is a firm whose job is to buy and sell currencies through currency trading platforms.
Currency brokers trade on behalf of retail traders. Like stockbrokers, currency brokers charge a fee to trade on behalf of clients. The fee is usually presented as a spread and not a commission. There is, however, a difference between stockbrokers and currency brokers. For Forex brokers, they place trades over-the-counter and not an exchange like stockbrokers.
Forex brokers have been the go-to firms when it comes to Forex transactions. However, with the rise of online trading, you can avoid brokers. Instead, you can take advantage of the movement of Forex prices through CFD trading and spread betting derivatives.
What Are Derivative Products
The ways in which you can trade Forex are two: using derivative products and through a Forex broker.
Derivative products are utilized by traders to trace an underlying market so that they can speculate how the price will behave, will it rise or will it fall. CFDs and spread bets are the two most popular Forex derivatives.
Spread betting
A Forex spread bet is a derivative that allows you to predict the direction the price of a currency pair will take. Two things determined whether you make a profit or loss. The first determinant is the movement of the market in your favor before closing your position. The second determinant is the amount of money you have invested per point of movement.
The advantage of spread betting is that this derivative is tax-free.
CFD trading
CFD trading is a consensus established from when you open your position to when you close it. Under this consensus, you agree to exchange in price of a Forex pair during the agreed period. You profit when the market moves in your preferred direction, and you go at a loss when its movement is against you.
How Does the Currency Market Operate?
Whether you choose to trade Forex through a broker or using derivative products, you must understand how the underlying currency market works. Remember, knowledge is power, and knowing the Forex market’s basics could determine whether you make money or lose it.
Forex trading is quite different compared to shares or commodities. Currency trading takes place directly between two parties, that is why it’s referred to as an over-the-counter (OTC) market. Shares, on the other hand, are traded through exchanges, the trading is not OTC.
A global network of banks runs the currency market. These banks are located in four major Forex trading centers, each in a different time zone. These trading centers are in Sydney, Tokyo, London, and New York. Trading Forex takes place 24 hours a day since there is no central location.
What are the different types of the Forex market?
Forex markets are grouped into three:
Spot currency market
This is the exchange of a pair of currency that takes place physically at the point where the trade is settled. The transfer of the currencies occurs on the spot or within or in a short period.
Forward Forex market
In forward Forex trading, a contract is established with a consensus to buy, at a specific price, a given amount of currency. The buying of the currency is set to take place at a given date in the future or between several dates in the future.
Future Forex market
In future-forward trading, a contract is established where the buying or selling of a given currency is agreed. The transaction has a specific set price, and the amount of money that will be bought or sold is also specified. The date of this transaction is set in the future. However, unlike forwarding marketing, the contract created in the future currency market is binding legally.
What is a base currency?
You might have come across the term base currency, and you might not know what it means. Base currency is the first currency that appears on the list of Forex pairs. The quote currency is the second currency. Currencies are paid since Forex trading involves the sale of one currency in order to buy another one. The worth of one unit of the base currency in relation to the quote currency gives the price of a Forex pair.
Three-letter codes are used to represent each currency in the pair. Often, the code is comprised of two letters that represent the region of the currency, and one letter stands for the currency itself. For example, USD/GBP is a pair currency between the US dollar and the Great British Pound. In this transaction, the US dollar is being bought while the Great British Pound being sold.
Therefore, the base currency is the currency you are buying when trading in Forex pairs, while the quote currency is the currency you are selling in Forex trading.
To make it easier to understand the currencies, most providers divide pairs into the following categories:
Major pairs
The major pairs are a composition of the currencies that contribute to 80% of the global currency trading. These include EUR/USD, USD/JPY, GBP/USD, and USD/CHF.
Minor pairs
These are the currencies that are traded less frequently. Minor pairs involve major currencies trading against each other instead of trading with the US dollar. Examples of minor pairs is EUR/CHF, EUR/GBP, and GBP/JPY.
Exotics
Exotics is a trade between a major currency and a small or emerging economy. Examples include EUR/CZK, USD/PLN, and GBP/MXN.
Regional pairs
These are pairs grouped according to regions. They include AUD/NZD, EUR/NOK, and AUD/SGD.
How does Forex trading work?
Forex trading for beginners should not skip out on this vital question, how does currency trading work? Forex trading works just like any other exchange where you use a currency to buy an asset.
In Forex trading, the market price is the indicator of the amount of one currency needed to buy another. For example, the currency exchange rate GBP/JPY indicates how many Japanese Yen buy one pound.
You trade on leverage when you use CFDs and spread bets to speculate the movement of Forex prices. Trading on leverage allows you to create a position using a fraction of the trade’s full value. You do not take ownership of the assets when trading on leverage. The position you take is on depending on how the market behaves, do you think the market will rise or fall?
The advantage of leveraged products is they can magnify your profits. The flipside of these products, however, is that if the market moves against you, the products will magnify your losses.
How to Trade Forex for Beginners
First, you will need a trading platform. You can either go with a Forex brokerage, in order to gain access to a trading platform, such as MetaTrader or you can also do it yourself by joining other electronic trading platforms. Then, you simply open a position, and now, you are trading Forex.
When you open a trade this essentially means you are taking or standing with one currency against another currency.
For example, when you open a trade on the EUR/USD pair, this means you believe that the EUR currency will either go up or down in value against the USD currency.
A man making a Forex trade
The most important aspect that you must understand when trading Forex is the opening and closing of major financial markets. Especially when two prime financial currency markets meet that is when the USD and EUR markets are both waking up and their timezones are intermingling, some traders call this “prime time trading”.
This is the time when volatility often spikes up and down very quickly, not just in those two financial markets but other major markets. Even minor markets are all being impacted, all at the same time. During “prime time trading” is where most traders make their money.
Main Forex for Beginners Trading Styles and Strategies
A trading style is a term they use to determine the appetite of a trader. Most beginner Forex traders are very aggressive, this kind of appetite is called a scalper. Here are common trader styles and the strategies one uses:
Scalper Trader
Scalper Trader is a trader who opens positions very aggressively during spikes or volatile trading times such as when a major economic event is being announced and the volume is going up or going down very, very fast. A scalper is looking to make money during the whole period of volatility.
Day Trader
Day Trader is a trader that likes to open positions during the opening of a financial market and would often close their trades at the closing of that financial market. The appetite of a day trader is often neutral meaning they want to make money as safely as possible.
Trend Trader
Trend Trader is a trader that follows the trend of a financial market meaning they study the country, its economics, the status of jobs, policies, impact, influence, and even its citizens’ quality of life. The appetite of a trend trader is often semi-aggressive. They are looking for signals, confirmations to go forward with their trades.
Swing Trader
Swing Trader is the most patient of them all. A swing trader will open a trading position, and leave that going for months sometimes even years. They are the epitome of long term trading. Their appetites are generally very calm, slow, looking to make gains over time, and very, very analytical in their approach.
What are Currency Pairs, and which are the major (most used) types
A currency pair is when you take two currencies and you pit them against one another meaning one acts as the base and the other the quote.
To simplify, think of it as you picking fighter A, and choosing that he will lose or will win, against fighter B.
For example, EUR/USD – EUR is fighter A and based on your analysis, EUR will go long or bull against fighter B or USD who is going short or bear in value. In simple words, EUR is going UP and USD is going down.
When you first open a trading platform and you see a currency pair for the first time, you will see two sides to a pair. The one on the left is called “bid” while on the right is called “ask”. The bid tells you how much you will need to buy a currency while the ask tells you how much you will make.
Banknotes of different currencies
Here are the major currency pairs:
EUR/USD
USD/JPY
GBP/USD
USD/CHF
USD/CAD
AUD/USD
NZD/USD
The reason why most traders open positions on major currency pairs is because of the spread and can be very liquid (volatile) in the Forex global market. This means it’s affordable and relatively speaking, safer to trade large positions when compared to other pairs or minor currency pairs.
What moves Forex trading?
The Forex market is influenced primarily by the rule of supply and demand. Supply and demand are determined by the fluctuation of prices, making it essential for you to understand the forces behind price fluctuations.
News reports
Economies portrayed as having a stable outlook tend to draw banks and investors. Therefore, when the market receives positive news about a given region, investors are drawn to that region and the demand for that region’s currency increases. The price of a currency will increase because of the disparity between supply and demand.
Business news have a huge impact on Forex trading
Like how good news positively affects a region’s currency, negative news also has an impact on the currency. Negative news leads to a decrease in investments, and with low investments comes a low price for a currency. Therefore, currencies are a reflection of how well an economy is doing in the region they represent.
Central banks
Central banks control supply since they announce measures that affect the price of their currency significantly. To protect the price of an economy’s currency from dropping, central banks can practice quantitative easing. Quantitative easing involves inputting more into an economy to boost its currency.
Market sentiment
Market sentiment is the reaction to news regarding a particular economy. Sentiments are influential movers of currency prices. If traders predict that a currency is moving in a particular direction, they will direct their trades in that direction. The trading may convince other people to follow suit, therefore, causing an increase or decrease in demand.
Forex Trading Risks & Tips for Beginners
When it comes to Forex for beginners, knowing the risk factors and the tips to maximize your trades can literally save you thousands of dollars as well as your own sanity.
Here are three of the most common Forex trading risks:
Interest Rate Risk
Remember that in Forex, economic announcements, especially in major financial markets such as the United States, the United Kingdom or Japan, can drive the volatility of those currency markets up or down, very fast.
This is why among the many tools a Forex trader has is his/her fundamental skills which involve a lot of research and staying up-to-date in a financial market’s geopolitical conditions.
A prime example of this is, when a central bank such as the Federal Reserve in the United States and its Governor speak, the majority of traders are listening as a policy announcement can severely impact their trades.
Transaction Risk
Transaction Risk is a risk that involves timezones. Remember that the Forex market operates in an interbank environment meaning when one financial market opens another one closes and sometimes even two major financial markets collide at a certain time called “prime time trading.”
Unless you are a swing trader, most traders (trend, day, scalper) prefer to close their positions before the close of the market. If you do not close your trade by the end of the market, your trade could be stuck and you lose control.
Imagine, having a pair like EUR/USD and you’ve won over 250 PiPs, and during the night or when you have no control, the currency moves and you slowly start losing PiPs. Not only did you lose 250 PiPs but you actually lose an additional 250 PiPs over circumstances that you could not control.
Leverage Risk
Leverage Risk is a double-edged sword. It can either bless you with wealth or curse you with poverty. Leverage essentially captures the appetite of a trader in full detail.
A trader with leverage or ratio of 1:1 is often considered a very aggressive trader. And ratios above that are considered semi-aggressive.
Imagine this, your account has a leverage value or ratio of 1:1. This means for every PiP that you will or lose, it is equal to your actual money. It is literally 1 is to 1, it’s not a percentage, it’s the complete package.
If you open a trade on EUR/USD at 1.0000 and you close at 1.0500, then you win $500 but if your trade closes at 0.9500, you just lose $500 – again, the leverage is your appetite. Are you comfortable at gambling $500? Are you willing to push your luck? Can you live without the $500? What if it’s $100,000?
What are Forex Robots (Expert Advisors)
A Forex Robot is a software that acts as an Expert Advisor. Its purpose is to remove the detrimental emotions involved in trading Forex. Think of Forex Robots as more of a user profile of an expert trader or more of a simulation, a copy of that expert trader.
For example, you like Jordan the Expert Trader because Jordan knows and understands signals and has been using those signals for years. The Forex Robot will simulate Jordan’s actions.
Now understand, it will never 100% legitimately mimic Jordan’s intuition but a Forex Robt can copy Jordan’s trading prowess and decide making skills (signals).
Your trades will be automated, and yes, you can adjust certain parameters. You can even make your very own Forex Robot, based on multiple trader profiles and appetites.
Expert Advisors automate Forex trading for beginners and limit emotions
A good and safe place to start and practice using Forex Robots is with a demo account. This way you get to see how the Forex Robot acts and behaves during different times and economic announcements.
And as you gain more and more experience, you can start developing your very own Forex Robot, full of all the signals, indicators that you are comfortable with.
There are hundreds if not thousands of experienced traders that use Forex Robots to reduce the stress they experience and the emotions that hinder their success in Forex trading – all to enable them to monitor their trades more relaxed or more passive.
Education Sources
When it comes to educational sources for Forex for beginners, there are multiple books available for you to study. There are countless hundreds if not thousands of YouTube videos available for free, there are Ebooks and of course, there are educational websites for learning Forex for beginners.
You can learn more about currency trading online through a webinar. When using a webinar, you will receive high-level personal training through the webinar’s one-on-one training format. If you cannot access a personal Forex professional, attending a webinar is your next great option.
Webinars offer different types of training, each geared towards your trading needs. They may also have a library containing past training sessions and recordings that you can access and listen to, to learn more about Forex trading in your free time.
Education in very important in Forex for beginners
But here’s the biggest drawback to all of those, they’re mostly outdated and not as detailed when compared to a fully-pledged program, where the instructor actually guides you, step by step, on the principles of success behind Forex trading.
Now, when it comes to actual websites that traders use to analyze their trades, here are the websites that you can take a look at:
But learning Forex on a professional level will require some investment. And you can not really depend on the websites that provide free staff. Usually, they offer something on the side.
Forex Training Courses for Beginners
We have given you a manual of the basics of Forex for beginners. However, before starting trading in the currency market, it is crucial you take lessons to understand fully the ins and outs of Forex trading.
Our trading courses aim to bring beginners to a professional level. And you will find different ready trading strategies and ready Expert Advisors in each course.
Conclusion
With everything that you have read about Forex for beginners, we are sure by now that you have a fuller understanding of what the Forex global market is and how rewarding it can be. And if not handled well, can quite literally destroy your life. Education is an absolute must when it comes to trading Forex.
At Forex Academy, we have taken the time, to educate you and provide fellow students, all that you need to know to start trading Forex safely, as well as the many mistakes, signals, warnings, and signs to avoid. And tips on how to leverage your trade position, when to open a trade, when to close, make money, and many more.
As you join and enroll with Forex Academy, we will not only teach you the basics of trading Forex. We will show you how to start trading with a demo account. That way we can safely guide you and educate you, as we give you the experience that you will need when you start trading Forex for real.
We all have to start somewhere when beginning a new venture. Do not let Forex trading scare you. Enroll now and join the thousands of satisfied students who are living the dream lifestyle you want!
To trade Forex, you need a trading platform. You can gain access to a trading platform either using a Forex brokerage like MetaTrader, or you can do it yourself by joining other trading platforms. Then, you simply open a position, and now, you are trading Forex.
Leverage is the process used to gain exposure to currency in large amounts without you paying the upfront the full value of the trade. What you do instead is put down a minimal deposit, known as margin. The full size of the trade will determine your profit or loss when you close a leveraged position.
The difference between quoted prices for buying and selling a Forex pair is a spread. You are presented with two prices when you open a Forex position. You trade at the buy price when you opt to open a long position. The buying price is usually slightly higher than the market price when trading at the buying price. You trade at the selling price when you opt to trade at the sell price. The sale price is usually slightly lower than the market price.
Forex changed my life, but I don’t trade more, I travel
Hello, everyone, it’s Petko Aleksandrov, and today I will tell you briefly how great I feel with the EA Forex Academy and how Forex changed my life, and how useful it turned out to be to change my trading from manual to algorithmic.
Today, I am in Sozopol, one of the most beautiful places on the seaside in Bulgaria.
It’s early in the morning. I had great swimming in that pool behind me:
The seaside is very near, which I will go to a later on today and I will record some videos from there. And recently, I do travel a lot.
Probably, you’ve noticed that before I was launching a new course, every new month, but now I upload a new course in a couple of months. Having the courses I met thousands of students and this way Forex changed my life in a great direction.
We update the courses and we will improve the EAs that are attached
First, this is because I update the old courses and the second is because I travel a lot. And exactly trading with Expert Advisors allows me to travel a lot because I don’t need to stay in front of the charts. I don’t need to follow the markets, the Expert Advisors, they are trading at home, in the office.
And that is the difference when I do manual trading. I don’t need to be in front of the screen all the time. I don’t need to follow the markets, to do price action, and be engaged in staying in front of the monitor.
trading monitors
With algorithmic trading. I travel, I do different things. I work on different projects, and I can afford to have free time to do whatever I want. And that’s the considerable difference between algorithmic trading and manual trading, and especially with EA Studio and FSB Pro,
EAs and the Forex changed my life because now I have the freedom to create so many Expert Advisors and to be able to manage them from distance like what I’m doing now, I just access them via the VPS from my computer, and things happen much more comfortably.
And probably, many of you would ask me why I keep recording videos, why I’m in a great swimming pool, there is the beach out there, and I am still recording videos and writing blog posts?
When Forex changed my life I realized I need Algo Trading when trading Manually
Well, it all started many years ago before even the Academy. The first time I started shooting videos was because I was doing manual trading and I had one very successful month. In one of the broker’s account, I did 200% of a profit in my real account. They even wrote an article about me. You can use google translate to read it because it is in Bulgarian.
In the next month, I was pretty satisfied with the results, and I didn’t trade a lot. And I had like 6 or 7, 6 or 7% for the month. And I realized at that moment that when I was doing manual trading, I was almost working on a full-time job.
If I was trading, I was making a profit, but if I was not trading, I was not making a profit.
And I felt like I was working for someone even I wasn’t. But it’s like I was working from 9:00 to 20:00 in the evening. And if I am not there in front of the computer, I will not have the profits at the end of the month. At this moment Forex changed my life but now what I wanted.
And I felt like I’m working a full-time job, something I wanted to avoid years back. And I wanted to have some additional income from something.
The only thing I knew was trading.
And I wanted something to compensate for the time when I’m not in front of the computer. So I started recording videos, and it turned out that people like them on social media, on YouTube.
And I grouped them into courses. So this is how all it started. And when I’m doing one on one education with many traders, they often ask me, why are you doing the courses, the Trading Academy, since you are doing good trading?
And that’s the reason. This is how I started. When I’m having the Forex Academy, the courses and when we are selling the software, basically this way I got additional income, which is not related actually to my trading.
And this is how I afford it, to have my team, to pay the people from the team that I already have in the last 2-3 years. And without them, I wouldn’t be able to do that.
The Academy has improved the quality of videos
And I can assure you actually, that everything we got from the Academy, like the courses, the software, the packages, just everything that we sell, all the income, every single dollar, I invested back in the Trading Academy:
better videos
professional cameras
microphone for outside videos
better editing and quality
And this is like costs for me, which I don’t want to give from my trading. I want to have an income that I invest back in the Academy. And it’s worked excellent for me because my trading is my trading. My team’s trading is their trading, and at the same time, we succeed to teach thousands of people how to trade.
We work on the Academy every day, and we are growing at, and we build it like really, really quick for the last 2-3 years. We have over 22 000 students by the moment – July 2020 and this way the Forex changed my life in a fantastic way.
And it’s a great feeling. And this is why I keep recording videos. Even now, when I’m outside and when I’m traveling, I want to share my knowledge with others.
And it all started like one by one. I was recording videos. Then it turned out that we need to have a video editor. It turned out that we need to have someone to do the captions for the trading courses. Then it turned out that we need to have people to translate the videos and so on.
The team works hard to give the ebst education to the traders
So it was like one by one, one by one. And so we have built the Forex Academy.
But again, I go back to the point it, because we trade with Expert Advisors. I have so much free time. And this is like really cool with the Expert Advisors that I can travel!
And of course, it took me some time to come to this point, but this was my goal from the beginning. I can say that I have achieved that one. And it’s incredible to be doing something else while you are trading.
So I will keep recording videos and writing articles from different places that I visit. And I have a lot of ideas about the videos and topics that I want to cover.
But if you have something in mind, something that I didn’t succeed to cover in my courses, if you just want me to talk about trading in general or to explain anything you want to know, please let me know in the comment below.
I will talk about it if I decide that it will be useful for many people. Thank you for reading.
Backtest MT4: the only way to relay on a strategy before trading
Backtest MT4 is the proper and professional way to test any strategy before real trading. How could this be done? With Expert Advisors. For the beginners these are trading Robots that implement trading strategies. And we can backtest them on MetaTrader. In other words, we can see how they performed until the moment.
I will demonstrate to you how Expert Advisors work and what exactly are the Expert Advisors, or the so-called Robots is the slang word, or you can find it as EA. And probably when I say EA, the younger audience will connect it with Electronic Arts, the video game company.
But actually, EA in trading stands for Expert Advisors. And these are automated strategies. As we said, they are executing the trades automatically for us, and behind 1 Expert Advisor, there is a strategy.
White writing this article I will use Expert Advisor that, I have added for EURUSD M15 on Meta Trader.
One important thing I need to mention is if a strategy is designed for EURUSD on M15, then you should be trading it on EURUSD on the M15 chart. Now, let me put this Expert Advisor over the chart.
Drag the Expert Advisor over the chart
I simply drag it, and you will see a small menu that comes up.
The input menu
We see here the Stop Loss and the Take Profit, I will explain that in a minute for the beginner traders.
The indicators matter in Backtest MT4
And below that, we have a couple of indicators; the RVI signal, Stochastic, and we have Awesome Oscillator. As well, we have the Magic number, which is kind of a unique number for each Expert Advisor, and we will use it later on in the course to follow the performance of all Expert Advisors that we will be trading with.
When we do backtest MT4 it is realistic and true when we use the proper indicators with their parameters.
So the Stop Loss and the Take Profit, for the beginner traders, are tools that are also used in manual trading. If I want to buy, for example, EURUSD at 1.11, I can place a Stop Loss at 1.1075, 25 pips lower, and I can set a Take Profit at 1.1150, which is 50 pips higher. So if the price goes to 1.1150, it will close the trade automatically, and if the price goes against me and hits the level of 1.1075, it will close the deals manually.
The idea in manual trading is that when you place the trade, you set the Stop Loss, you place the Take Profit, and you don’t touch it. So you will ignore all of those emotions that I was talking about, and you will just leave it to the market whether it will hit your Take Profit or it will hit your Stop Loss. While in algorithmic trading, the idea is different.
AutoTrading
We have the backtest MT4. You will see the whole process that I will follow to create these strategies. And all these values, the Stop Loss of 56.1 pips and Take Profit of 90.5 pips, these are not just random numbers. These are values that were generated with software, and it shows that these are the best values for this strategy, on this currency pair, on this timeframe. And you will see the strategy just in a minute.
So if I click on OK, the Expert Advisor is attached to the chart, and you should see a smiley face here, and now it is sad because I didn’t allow the AutoTrading.
When AutoTrading is not enabled
So when we want to trade with the Expert Advisor, first you need to enable the AutoTrading,
Enable AutoTrading
and then you drag it over the chart, and you will see the smiley face.
Now, I just want to show you the backtest MT4 and to demonstrate to you this Expert Advisor. I don’t want to trade with it. I wish to show it to you. Right-click, I go to Expert Advisors, and I go to Strategy Tester.
Right-click, go to Expert Advisors, then Strategy Tester.
And you can see it selects EURUSD automatically on M15. As a model, it is Open prices only.
The symbol and model
So, in simple words, what Open prices only means is that on the opening of every bar, the Expert Advisor checks if the entry conditions are there.
Visual mode with backtest MT4
And if they are right, it will execute the trade. Now, I will not use date, I will just use all of the data that I have in Meta Trader, and I will go to Visual mode, so you will see how that works. As a spread, I will use the current spread that I have for EURUSD.
And before I click on Start, I will reduce just the speed a little bit, and I will click on Start. So you see it simulates trading back from 22nd of February, 2018.
The trading is simulated.
You see one trade was opened over here, it is a sell trade, and the price continues, and it will close the deal at one moment, then it will look for the next trade. Let me make it a little bit faster. I will try to make it at a level where it will be more visual how that works.
So the price goes in a range. The trade was closed, a new trade was opened, and then the price continues to move, opening, and closing trades. If I make it with the maximum speed, it will complete very quickly.
Now, with the Visual mode, in the end, you will see the indicators that are for this strategy.
The strategy with Visual mode
So we have the Stochastic, we have the RVI, and we have the Awesome Oscillator. The strategy, in this case, is that if we want to buy, we want to see the RVI signal crossing the signal line upward. The RVI is crossing the signal line upward. It is this one over here.
RVI signal crossing the signal line upward
The entry rule and the exit rule
So this is the first signal. But to execute the trade, we want to see confirmation from the Stochastic, and it should be falling. And if it is rising, there will be no confirmation. This is just a particular strategy. So what I was talking about earlier about the reppainting indicators applies here very well. It’s not clear where exactly the cross happened.
But keep in mind that these indicators are repeating. So what happened at this moment is not exactly what we see right now. As well, the Stochastic is repainting, so it’s misleading to look at it this way back in time. Anyway, this is the entry rule, and the exit rule is that the Awesome Oscillator crosses the level line upward.
So let’s say at one moment we have the trade executed. As I said, it’s tough to look back in time. But, for example, if we have the cross and we have the confirmation from Stochastic, we will buy. And then the exit will be when the Awesome Oscillator crosses the level line upward. It’s right over here.
Awesome Oscillator crosses the level line upward.
So, one more time, this is just an example, and I’m not sure if it is the exact one because it’s not visual from the chart.
The backtest MT4 – the reality
Don’t look back over the chart to try to figure out strategies because the indicators are misleading, and it’s not the reality. This is the reality, the backtest.
We have the results, so we see exactly where the trade was opened and where precisely the trade was closed. We see the Profit, the balance, and if I scroll down, I see that starting at 10,000, we ended up at 10,198.93. And this was trading with 0.01, which is the minimum quantity you can trade on Meta Trader. And we have the report where we see some statistics.
The report
For example, you can see the gross Profit, the total loss, drawdown, long position, short position, a lot of statistics, but most important is the graph.
The graph
You can see how this strategy performed. So there was a drawdown, then profits, then a little bit of a drawdown, then profits again, and it’s very normal. Every strategy has a losing period, and it has a profitable period.
The most important thing is that the strategy should give us a backtest that goes on Profit. And this is why I am trading with many Expert Advisors, not just with one.
Risk diversification
When one of the Expert Advisors loses, the others will be profiting, and they will compensate for the loss. And you will see in the next lectures what I’m talking about. But this is called risk diversification. When some of the strategies lose, the others will compensate for that. And the portfolio of Expert Advisors will have a much more stable backtest.
And, one more time, if I go to Expert properties and I go to inputs, you will see that this is trading with 0.01. Now, if I change it to a complete lot and click on Start, I will have the very same graph, but you can see what the difference is in the result.
The graph changes
It’s 28,000 and something or even a little bit more. Let me go to the results, and if I scroll down, yeah, it’s 29,732. It is starting from 10,000. This is nearly 300% of a profit.
The results
Expert Advisors automate the strategies
This is how the Expert Advisors work. They execute the trades automatically. This is the backtest. It’s great because we see how this strategy performed. We see the equity line, and this is the result of continuous trading, from Monday until Friday, 24 hours. And as we said, this is not possible for manual trading, as well we don’t have such reports in manual trading.
Now, the software that I am using to create these Expert Advisors shows much more information and statistics about each Expert Advisor or if we have many Expert Advisors in the account, and I will show you that in the next lectures.
In this article, you will learn more about online Forex Robot trading and the tricks to maneuver. The nuts and bolts will be hidden herein.
Online jobs are jobs that came to save the day. You can work remotely and still measure up to an individual who takes a 9-to-5 work and salaried. All this is thanks to the advanced technology and internet that has made the world to be a village.
In fact, during this global pandemic, people are advised to work from home if they can. What skill have you learned with your high-speed internet at your disposal?
During the global pandemic, people are advised to work from home
It may be leaning to jot great content for your organization, or maybe writing SEO content for that e-commerce website.
All in all, you want to do something that will add a few bucks on your salary, and this is what counts. And Forex robot trading is such a thing.
What Is Online Forex Trading?
To start with, you must learn what Forex trading is.
This is the act of purchasing and selling world currencies. Now online Forex trading is such a practice but done individually over the internet.
You see, central banks, institutional investors, and corporations all invest and exchange foreign currencies for many reasons. Such reasons include the facilitation of international trade, balancing the markets, for tourism purposes, or even just to make a profit.
Why do People and Entities Trade Currencies?
Now, currencies are vital to the masses world over. They must be exchanges for foreign exchange o happen.
You might be living in Canada, yet you want to purchase cheese from France. Therefore, whether you are buying it individually or using a company to do it, one of you must pay the French company or the French seller in Euros.
What then this means is that you will have to convert or exchange the equivalent value of the money say the Canadian Dollars to Euros.
Euro banknotes
It is also the same with traveling. If a US citizen goes to Egypt for example, they will have to pay in dollars. However, while they are there, they will have to convert their currencies to Egyptian money for them to maneuver there.
Egyptian currency is pounds, and thus they will have to do their math to know how much they will receive in return for their dollars. That is a Forex trade.
Aspect of the international Forex market
There is something that you need to understand about Forex trading, and the aspect of the international Forex market, which is that there is no central marketplace for foreign exchange.
Therefore this trade is done electronically, thus the name online Forex trade; over-the-counter online Forex trade. Therefore, all the transactions are done through computers.
International Forex market example
With a computer and internet, you can do business around the clock, trading worldwide currencies 24/7. Currency markets are many, and not far between, for instance, the renowned financial centers that trade worldwide are based in New York, Tokyo, London, Zurich, Hong Kong, Frankfurt, Paris, Sydney, across every time zone.
What this means, therefore, is that when a trading day ends, say in Tokyo, Japan, another trading day begins in the US and vice versa. Consequently, you see that the online forex trade is active at any time of day or night, with price quotes constantly changing.
History Of Forex Trading
Unlike stock markets which has deeper roots and has been in existence for many centuries, Forex is a new market. It came into existence since the time nations began to mine and mint currencies.
However, when we talk about online Forex trading, we mean the modern invention of Forex trading that can be carried out using computers and a reliable internet connection.
Forex trading example
You see, after the Bretton Woods accord of 1971, major currencies started floating freely against each other. This gave rise to a possible fluctuation in rates. Due to this, there has always been the need to exchange foreign currencies when and where you can make a profit.
The narrative here is making profits even though; if you trade unwisely, you can incur losses. Commercial banks, as well as investment banks, conduct this trade on behalf of their clients.
This is, however, not exclusive to these entities as professionals and individual investors have flooded the market with the hope of making profit margins.
What Do You Need To Start Online Forex Robot Trading
There are a few things you need before venturing into this lucrative trade. One of them is first to understand the lingo. You need to learn and grasp the commonest lingo used in Forex trading.
This will make your entry into this vast world a breeze. There are specific terms that you will come across, including entering a short and long position, forex risks and rewards, to mention a few.
Others include choosing the right and legit broker, analyzing the world economy, and much. Then you can safely taste the waters- making your first move.
Fund Your Forex Trade Account
There is that interim period when you would be asked to trade with virtual money. This is that stage when you are learning the ropes.
After that, you will be required to trade with real money. Here you will need to deposit real cash into your trading account, and the broker will serve as a margin.
The amount you deposit will be leveraged by a ratio depending on where you and your broker are situated. Your broker for online Forex trading offers a wide arrange of accounts to choose from as well as the funding methods.
Therefore anytime you want to withdraw funds from your trading account, you will need to use your agreed method.
Online Forex trading platform to download
There are many online Forex trading platforms to use. Most online Forex trading brokers offer MetaTrader 4. There is also another popular one from the 5 platforms from Meta Quotes.
These can either be used online or downloaded free of charge. There are also proprietary trading platforms that you can download from your broker’s platform.
Forex trading platforms
Nonetheless, downloading, installing and using them is easy peasy because there are well laid out instructions that will guide you throughout the trading process, needless to say, that you already know the process because you used a demo account before going full throttle.
Entering your first trade
Entering your first trade is called going live. This is often after you have taken your time trading using a demo account and learning the nut and bolts.
Doing this will help you avoid deadly mistakes. It is upon trading with this account that you can feel confident of going live with your online trading account.
When Is the Best Time to Trade
On the best time to trade, there can never be a one answer fit all.
You see, you are trading against a variety of currencies and against different times; therefore, you need to be glued to your screen to know when a currency gains over your trading currency and make a trade.
Funny enough, this is where most learners and experienced forex traders find it unpalatable.
They don’t have the patience to look at that screen to know when to trade. Unfortunately, they may end up losing a fortune when a good deal presents itself in their absentia.
You don’t have to worry anyway as there are Forex trading robots that could be handy in trading on your behalf when you are not online. Many companies today have come up with their calculators, which you can install and have them work-trade when you are away.
What is Online Forex Robot Trading?
When talking about Forex trading robots, you would also talk about automated trading since this is one thing. A robot for trading Forex automates your trading pattern.
Forex Trading Robot illustration
This is an automated trading software that trades correctly on your behalf. You see, this is computer software that is created on a set of Forex trading signals. Thus, it can discern whether to sell or purchase a specific currency pair at any given time.
The best thing with Forex robot trading is that Forex robots are available around the clock. What’s even juicy is that you can purchase them through the internet. Since they came into existence, many people still doubt their workability.
However, here and now, we can say point blank that forex robots are effective. They work. There are a couple of the most renowned robots that you can partner with to make your online trading venture a success. One of them would be the EA Studio software.
Then there are a couple of many others.
Why Would You Want To Use a Forex Robot?
The sole reason why traders opt for Forex robot trading is that they want to make easy money from Forex trade without having to keep watch behind their screens.
The truth of the matter is that these robots are a god-sent innovation that works all the time. It automates your trade, and you do not have to sit and do your thing manually. If you are using one, you only need to choose a good currency pair and a perfect trading time frame when you think profits will be roof-tops.
Forex trading robot example
There are many Forex robots, so there are those that can scan numerous charts in a way that you cannot. On top of that, these robots are coded with certain parameters that aid them in making the right trading decisions. They have trading signals that tell them when it is right to trade or when it is not safe to trade.
A proper robot for trading Forex online would suggest solutions for profitable trades even when the trade is murky or when the trading trend is not clear.
They will follow the right trends, and at the end of it, all enlarge profits. If you are not a Forex guru, you definitely might not know a lot about trading carefully against the trend.
However, with a trading robot, you can do this successfully. Thus, if you are starting out, and not confident enough, software for Forex trading can let you trade carefully against the trend and rip profits.
Advantages Of Forex Robot Trading
Trading robots are versatile and resourceful.
When trading Forex online using a robot, you don’t want one that only predicts the market’s fluctuation. You want one that goes beyond that, to provide you with an array of trading tools. Such a robot guarantees you of a quick, secure, and safe trading experience like no other.
You trade around the clock.
Well, humans are time restrained, and they can only trade at some given time. They cannot sit all day behind their screens, waiting for a positive trading trend.
Also, they will have to take frequent breaks to have lunch, bath, sleep, or running some errands. They have to dedicate some time to attend to their families and other responsibilities.
This is not the same with robots as they can trade 24 hours straight.
Therefore you should take advantage of the Forex Robot trading since robots are all the time available and can choose a perfect entry and exit opportunities.
Robots operate with no greed, fear, or ego.
You heard it; most people lose money trading online Forex because of fear. Fear acts as a defensive force that restricts an individual from making the right trading decision.
In the same breath, greed sends one to indulge in random trading, which might not be profitable. Now with robots, these emotions are not present, and they don’t operate on hunches; thus, they are more efficient in trading. The robots use past trading strategies to come up with quantifiable data in trading.
Trading robots act quickly on opportunities.
You need a good computer with super-fast speed to trade fast using a robot. With a fast computer, the robot can quickly identify opportunities and execute them. You cannot compare this to humans trading because they first must enter an order.
Therefore it takes several great minds to achieve what a Forex trading robot can do single-handedly.
Conclusion
There are many other advantages of using a robot to make online Forex trade. These robots can multitask effectively because they can monitor various currency pairs at a go, something which you cannot.
Having said that, however, you need also to know the drawback of this software as anything that has advantages bears an equal share of disadvantages. If robot A works for you, then you should embrace it. The bottom line is that they are a great deal to use for trading online Forex.
