Forex Trading Adviser – A Step Forward From Expert Advisors

Forex Trading Adviser is a new software that we are developing. It is designed for strategy optimization and trading automation (both full and semi-).

It is not too difficult to fully automate Forex trading. To do that, you only need to formalize your trading strategy and have a trading terminal that supports trading automation.

Such tools are fully available to the broad public. Maybe the best example is Metatrader, which is used by the vast majority of non-institutional Forex traders. You can automate your trading strategy there with a help of an Expert Advisor – a program written in a simplified C-like language.

Still, it is safe to say that most often trading is done entirely manually. We think the main reason behind that is that people lack clear cut trading strategies that they can automate. In addition, the majority of amateur traders are not at all comfortable with coding and testing software.

During manual trading, full attention is required from the trader. But even bigger problem is stress. In our opinion, optimal solution would be to combine both methods – manual and automated. In such semi-automated approach, a trade can be entered manually, but then its monitoring is done automatically by the software. Alternatively, the software can start an automated strategy, but afterwards the trader will be monitoring the trades and interfere if needed.

All this (and much more) will be possible with the Forex Trading Adviser.

Forex Trading Adviser: In between Manual And Automated Trading

We are developing a stand-alone Windows software, called Forex Trading Adviser. It works in connection to Metatrader terminal. Via a special Expert Advisor, it receives market data in real time and sends back trading commands when necessary.

Trading Adviser will have a convenient GUI that will compensate for almost non-existent user interaction functionality of expert advisors. It can also modify an expert advisor’s behavior at runtime. Which otherwise can’t be done without the expert advisor restart. So Adviser and Advisor complement each other.

One of the use cases for the Trading Adviser can be dynamic adjusting of the threshold for the stop-loss and take profit orders. For example, the Trading Adviser can trigger them based on some averaged market quotes.

Let’s go in more detail how we can protect our position. If we use a standard stop order, Metatrader will trigger it when the market price matches the stop order. But it might be just a whipsawing that can only last several ticks. Using trailing stops will work no better.

To minimize the effect of whipsawing, we can activate the protection after some level is breached, and then use simple averaging on the interval of 5-10 latest ticks to get more reliable decision whether to exit the market or wait for more evidence of our wrong positioning.

Alternatively, we can use some indicators and only close the position when the threshold is confirmed by them.

Technically, the communication between the Trading Adviser and expert advisor is implemented using Windows messaging. Every time a new tick comes from Metatrader to the expert advisor, the latter sends a message to the Trading Adviser, which makes a decision and sends back a trading command, if needed.

Forex Trading Adviser
Forex Trading Adviser works with Metatrader

Even in the very fast-moving market, we can only get maybe tens of ticks a second. This is many orders of magnitude less compared to the speed with which any computer can process the messages. So the delay added by the Trading Advisor software is absolutely harmless.

Please comment on this post  – do you think a product like Forex trading adviser is needed? What functionality would you like it to provide?

If you are interested in Forex Trading Adviser, visit our new site where we will be posting the early availability releases and discuss the features.

Meanwhile, to get updated automatically you can subscribe for our mailing list – Forex Strategy Tester.