What are Expert Advisors?
Inexperienced beginners are always interested in finding a trade robot that does all the work, so that the trader does not have to lift a finger. This idea has been pursued by all traders of the computer age. The burden of responsibility for decision making, which wears out a trader`s nerves, now falls squarely on the trading forex expert advisors.
In 2010, high-frequency and algorithm trade accounted for 60% to 70% of trading. By 2014, this number rose to 75%. By 2017, JPMorgan reported that traditional traders represented a mere 10% of trading volume
In 2016, the Hong Kong company Aidiya, led by Ben Goirtsel started a hedge fund that performed all operational transactions through artificial intelligence solely, without any intervention of humans. "If we all die, it'll still continue to trade," - Goirtsel remarked.
In 2017, Wall Street had its first 100% AI-powered Equity Trading Fund (ETF) . In the first week of operations, it went up by 1 %, consequently beating the S & P 500 index. Remarkably, by August 2018 its shares rose by 20%. ETF operates on the premise of IBM Watson, a supercomputer processing and analyzing the news and reports related to 6000 American companies. Additionally, Watson continual learning capabilities examined its own performance, in the case of unprofitable transactions, the algorithm would learn from its mistakes to make more accurate decisions in the future.
How to build an Expert Advisor
Expert Advisors for MT4 for are built using a programming language called MetaQuotes Language, or MQL. Just like any programming language, getting up to speed with the ins and outs of MQL requires a significant investment of time and effort. You can find guides on the MQL site.
You can also build simple EAs using MT4’s inbuilt wizard, or an external strategy-building tool. These visualise the code that is being written underneath, enabling you to put together strategies without learning a whole new programming language.
However you choose to build your EA, it’s hugely important to test it out rigorously before you let it trade using real capital.
Main functions Robot can do:
**Managing opened positions
**Generating signals for the trader
**Trading automatically round-the-clock
**Ability to trade non-stop
**Removes emotions from trading