Automatic trading. How to choose advisors, or trading robots?
Automatic trading is trading with the help of a program - a robot that analyzes the market itself according to the built-in algorithm, opens deals, monitors them, closes it itself or by its stop or take.
Automated trading has many advantages and disadvantages, but it does not suit a novice because in order to configure and correct the operation of such a program, you must have experience in trading yourself in order to be able to analyze the market and compare it with the trading robot algorithm. You need to be able to draw conclusions about how the program will behave, when to turn it on, when to turn it off, when to change the settings for MM or the conditions for concluding a deal. The simplest example is Ilan, advisers - Ilans, knowingly gained fame, because they trade with experienced people for a plus, but for a person with no experience, Ilans merge accounts. No experience in trading - not enough.
Advantages of trading adviser:
1 - trading is automatic 24 hours a day, or the way you configure.
2 - the adviser will not miss the deal, it always works according to the algorithm.
3 - the adviser will not push back the stop, if there is no need for it, will not sit out the drawdown, it is cold and immune to emotions.
Cons trading advisor:
1 - the adviser analyzes the market strictly according to the algorithm, in unusual situations this turns into a minus and causes losses, since such situations require improvisation.
2 - the adviser is not trained in trading, even those that are built on the principle of neural networks. In MQL, the implementation of a self-learning robot is practically impossible.
3 - the adviser requires a constantly-on computer with a terminal, or a good VPS server. Failures in communication or in server operation can lead to disastrous consequences.
Advisers are selected based on the algorithm of their work, taking into account the experience of the trader. A trader must understand the principle of the adviser, understand how the adviser will behave in a particular situation. If a trader has chosen an adviser and agrees with its algorithm, understands what and how it will be, then testing and optimization of the adviser in the terminal is performed using the adviser tester. Testing is carried out in order to identify errors in the program code, so that the adviser really matches the parameters declared by the developer, and the optimization selects the most suitable input parameters for this period of the market condition. Advisers most often use standard and their own indicators for entry conditions, here the settings of these indicators, stop and profit parameters and so on are optimization. The Expert Advisor Tester runs an Expert Advisor with many settings in the ranges selected by the trader and displays a spectrum of all these runs with the results.
After testing on the history (backward test), a period of time is selected for which the EA was not tested. And here we run the EA with the parameters already selected - this is a forward test. If all is well, then we put the adviser on real, a cent account with a small amount (you never know) and look at its behavior already in the real market. Indeed, in the real market, breaks in communication and requotes and slippages are possible. If everything is fine here, then we include the adviser in a full-fledged work.
You need to understand that the best advisers are written specifically for your TS (because you are well versed in it), according to the algorithm you compiled, and especially for you. The services of translating the TS into the program code are not so expensive and cost, but you will get a unique, personal advisor.
I would like to say that Automatic trading is the pinnacle of the trader's development (with the exception of medium-long-term ones, who rarely have inputs and advisers to them, scalpers are questionable - there are many nuances, but an experienced scalper will decide whether the adviser needs it or not ), the crown of experience. Beginners have a long way to go, but they will be rewarded with profitable and efficient trading.