For many of the brightest forex traders in the industry, one of the biggest drawcards of the MT4 platform is the ability to automate their trading using an algorithmic approach.
This algorithmic approach to forex trading is also referred to as using trading robots which are able to analyse the markets systematically from a purely numbers point of view, find setups that match an exact set of criteria, and then execute trades automatically.
Yes, the MT4 platform can essentially alleviate the time consuming and error prone aspect of discretionary trading. The potential here in the algorithmic trading space, is absolutely immense!
How do I find a Trading Robot on the MT4 Platform?
The three easiest ways to find and acquire a profitable forex robot for all your algorithmic trading needs are as follows.
First up, you can easily download the trading robot of your choice, often free of charge, from the Code Base. If this isn’t for you, then check out the Market and browse a vast selection of robots that meet the set of trading criteria that you choose to sort the database by. The third easy way to find and acquire a profitable forex robot is to provide a custom brief to professional, freelance developers who will work with you to code your algorithmic trading system to work on the MT4 platform.
Furthermore, just keep in mind that you can code your own forex trading robot. The MetaTrader 4 platform provides for the entire MQL4 IDE development environment and will help you create, test and optimise the perfect trading robot for you. It’s here that you can create trading robots either for your own personal trading, or even place them up for sale through the market.
What Programming Language is used to Develop Trading Robots on the MT4 Platform?
The programming language that is used for developing trading robots on the MT4 platform is called MetaQuotes Language 4 (MQL4).
The MQL4 language is an object oriented programming language which is based on C++. By being an object oriented language, there is immense flexibility in how the coder can go about developing the trading robot to a set of flexible specs. It allows users to develop complex programs on the MT4 platform, while accurately managing all of the parameters around the trading robot itself.
The MQL4 prorgramming language is used in the development of trading robots, technical indicators, scripts and function libraries for use within the MetaTrader 4 platform. As we’ve spoken about throughout the Forex Essentials section of the blog, flexibility of the MT4 platform is key.
What are Some of the Key Algorithmic Trading Terms?
Trading Robot: Otherwise known as an Expert Advisor (EA), this is a piece of software that automates the process of analysis and trade executions from a set of coded rules.
MT4 Indicator: A tool for analysing the market using a particular mathematical price formula. Indicators do not execute trades, only provide analysis.
MT4 Platform Script: An application that is executed once and will perform a simple action such as closing all open orders.
MT4 Library: A set of custom functions that is intended to store and distribute commonly used parts of custom MT4 applications.
Source: Vantage FX Blog