What is fx auto trading and passive income?
by Sng Chong How
Forex is the largest trading market and bigger then major stock market combined in the world. Daily more then 3 trillion worth of currency value are traded on a 24 hours time frame spread over 6 days a week. Expert Advisor is a program to automate your trading strategy using Metatrader 4/5 (MT4/5) MetaQuotes Language 4/5 (MQL4/5)
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 MT4/5 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 MT4/5 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 Academy
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. MT4/5 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.
Article Tags: Automatic Trading, Autotrading, Auto Forex System Trading