The ChoosaBroker Trading Academy

14.4. Using Expert Advisors with MT4

Financial market trading can sometimes get very frustrating. Traders either get greedy or fearful; both of which clouds their judgement and results in bad trades. One way to avoid this emotional pitfall is to use an automated trading system. As the name implies, such a system is based on pre-defined rules and automatically opens and closes positions on behalf of a trader. Most of the leading brokers offer this option.

What is an Expert Advisor?

MetaTrader 4 Expert Advisor, commonly known in trading parlance as an “EA,” is essentially a program that automates the analytical and trading process once installed on to the trading platform. Expert Advisors can easily be obtained online, usually for a price, or can be created by traders themselves.

EAs available on the internet can be of numerous varieties. The four most popular and common categories are listed below:

  • News EAs – They are developed to take advantage of significant news events and the big price moves that follow.
  • Breakout EAs These are programmed to initiate a trade the moment a security breaks through key support and resistance levels.
  • Hedge EAs – Such type of advisors open two separate and opposing positions to reduce the quantum of loss. As a result, the profit potential is also compromised.
  • Scalper EAs – They try to capture small profits once they become available.
The benefit of using an Expert Advisor is that if you have already put in place the rules of a profitable mechanical system, you can build an EA to replicate its actions without you having to touch the computer mouse or the keyboard. This comes handy if you like simultaneously entering in to multiple positions, or just lack the time to stay glued to your trading screen.

How Do Expert Advisors Work

Expert Advisors typically utilize technical indicators to evaluate current market demand-supply scenario and place trades on behalf of a trader. The EAs work by computing the various indicators that they were designed to use. When conditions in the underlying market meet the precise criteria that were outlined in the EA’s source code, the EA takes action. Multiple conditions can be assigned to an EA for initiating and exiting a trade. Furthermore, conditions can be assigned to exploit multiple take-profit levels and trailing stop-losses.

METAQUOTES LANGUAGE 4 (MQL4)

To create your own Expert Advisor you will need to use the MQL4 programming language. It is based on the concepts of the popular C++, and contains the basic indicators necessary for analyzing both historical and current prices. EAs can be developed in MQL4 through the embedded compiler, MetaEditor. It is integrated in to the MT4 platform and allows for convenient editing of program source code and automatic generation of projects via a template.

HOW TO SETUP METATRADER 4 EXPERT ADVISORS: STEP-BY-STEP GUIDE

Step 1: Creating an EA

To create your own EA, click “View”>”Navigator,” and then right-click on Expert Advisor and select “Create.” This will open the MetaEditor and display the MQL4 Wizard.
Employ the Wizard to define the type of Expert Advisor you wish to create. Next, enter a name, the developer’s name and the developer’s website in the General Properties pane. Click Add to add a parameter to the EA. Note down the location where you saved the file.

Step 2: Transferring Files

  • Choose and copy the Expert Advisor you want to install.
  • Paste the EA files into the “Experts” folder. A pop-up will emerge seeking admin permission. Press on “Continue.”

Step 3: Installing the Expert Advisor on MT4 Platform

  • Launch MT4.
  • Look at the “Expert Advisors” located in the “Navigator” section at the bottom-left of the screen. Click on the “+”
    sign to get a drop-down list of the available EAs.
  • Select the EA you wish to install and drag-drop it on to the chart window.

Step 4: Altering Settings

  • A pop-up box should next emerge displaying the settings of the selected EA.
  • See to it that all of the settings and alerts are specified correctly before clicking on “OK.”
Notes on MetaTrader 4 Expert Advisors
  • All EAs are closed once the Terminal is shutdown.
  • If a chart is closed, the EA attached to that specific chart will also shutdown.
  • Adding an EA to a chart will remove the previous EA attached to that chart.
  • Deleting an EA from the “Navigator” pane does not shut it down on an active price chart

For more information on the best trading platforms utilising Mt4 and Expert Advisors (EA)

 

Ready to trade? Check out these top trading platform brokers and these best CFD brokers!

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