This is the most important portion in any Forex or Stock trading. You have to have winning strategy with rules and setup you follow every day in order to trade and earn profit from your trading. You may be using long or short term strategy on multiple currency and many different timeframe. In general, you need to have winning strategy.
Once you have a winning strategy, you have to try it out by manual trading. This portion of manual trading is more paper trading using paper money. Once you try a few trades, do review and refine your trading strategy and try again. Within weeks, you will have a refined trading strategy that works and gain profit for you.
Back ward testing
Next is back ward testing your strategy using historical data and chart. I would suggest at least back test up to 12 months of historical data to really fool proof your strategy. There are many Financial news through out the whole year which can affect the price of the currency and is important that your strategy can withstand those hugh trends and spike of price.
Once you have revise and refine your trading strategy by manual trading and backward testing, you are now ready to proceed to the next step is to automate your trading strategy. For programmer and self help trader, you may want to do the programming and code it yourself. You can use MT4 MQL to code it and there are many forum and blogs out there helping you to create your own Expert Advisor.
Hire a programmer
If you are not a hard-core programmer, you can always outsource the programming part to others. You can check out at elance.com or any other out-sourcing website where you can post your job and hire experience programmer in MT4 to handle your codes. This process will take a bit of time as you will need to run and check if the software is working according to your manual trading and backward testing.
Join a Forex Academyor Institution
The next alternative is to join a Forex School or Teaching Academy. Once you proof your strategy to them, they will help to automated your strategy and start offering to their students. In this way, you will ride on the school resources and gain passive income via rights or loyalties.
Post if out for partnership project.
This is the last suggestion and it does work wonders. MT4 programmer will know about it and help to program into software codes. They can help you run, test and debug the simulation results. You can work with them to develop other software with other strategy, a win-win situation.
Algorithmic trading and Direct Market Access (DMA) are important tools helping both buy and sell-side traders to achieve best execution.
This book starts from the ground up to provide detailed explanations of both these techniques:
- An introduction to the different types of execution is followed by a review of market microstructure theory. Throughout the book examples from empirical studies bridge the gap between the theory and practice of trading.
- Orders are the fundamental building blocks for any strategy. Market, limit, stop, hidden, iceberg, peg, routed and immediate-or-cancel orders are all described with illustrated examples.
- Trading algorithms are explained and compared using charts to show potential trading patterns. TWAP, VWAP, Percent of Volume, Minimal Impact, Implementation Shortfall, Adaptive Shortfall, Market On Close and Pairs trading algorithms are all covered, together with common variations.
- Transaction costs can have a significant effect on investment returns. An in-depth example shows how these may be broken down into constituents such as market impact, timing risk, spread and opportunity cost and other fees.
- Coverage includes all the major asset classes, from equities to fixed income, foreign exchange and derivatives. Detailed overviews for each of the world's major markets are provided in the appendices.
- Order placement and execution tactics are covered in more detail, as well as potential enhancements (such as short-term forecasts), for those interested in the specifics of implementing these strategies.
- Cutting edge applications such as portfolio and multi-asset trading are also considered, as are handling news and data mining/artificial intelligence.
There is also a website for this book at www.algo-dma.com
Algorithmic Trading and DMA: An introduction to direct access trading strategies.
Finally, the first comprehensive guide to MQL programming is here! Expert Advisor Programming guides you through the process of developing robust automated forex trading systems for the popular MetaTrader 4 platform. In this book, the author draws on several years of experience coding hundreds of expert advisors for retail traders worldwide. You'll learn how to program these common trading tasks, and much more: - Place market, stop and limit orders. - Accurately calculate stop loss and take profit prices. - Calculate lot size based on risk. - Add flexible trailing stops to your orders. - Count, modify and close multiple orders at once. - Verify trading conditions using indicators and price data. - Create flexible and reusable source code functions. - Add advanced features such as timers, email alerts and Martingale lot sizing. - Avoid common trading errors and easily troubleshoot your programs. - Adjustments for fractional pip brokers and FIFO. - Plus, learn how to create your own custom indicators and scripts! Whether you're a beginner or an experienced programmer, Expert Advisor Programming can help you realize your automated trading ideas in the shortest amount of time. This book features dozens of code examples with detailed explanations, fully-functioning example programs, and reusable functions that you can use in your own expert advisors!
Expert Advisor Programming: Creating Automated Trading Systems in MQL for MetaTrader 4. Click here to see 19 customer reviews and choose from 14 suppliers
As head FX strategist at CMC Markets–one of the world's leading forex/commodity brokers–Ashraf Laidi understands the forces shaping today's currency market and their interplay with interest rates, equities, and commodities. And now, with Currency Trading and Intermarket Analysis, he shares his extensive experiences in this field with you. Throughout the book, Laidi outlines the tools needed to understand the macroeconomic and financial nuances of this dynamic field and provides you with insights that are essential to making the most of your time within it.
Currency Trading and Intermarket Analysis: How to Profit from the Shifting Currents in Global Markets (Wiley Trading) Click here to see 18 customer reviews and choose from 30 suppliers