You should have your Forex trading strategy description – even if you trade manually. And if you do auto trading, it is a must.
It is safe to say that the majority of amateur traders use Expert Advisors (EA) for automated trading. Why? Because it is a convenient way to interface the market via Metatrader trading terminal. And it is free.
What is EA exactly? It is essentially just a computer program, written in a proprietary language that is very similar to very popular C++, which is not the easiest thing to learn.
However, not all of us are computer programmers. And not all of us even want to master programming in a quite complicated language – just to be able to do the Forex trading strategy description ourselves.
Let’s also look at it this way. A lot of coding skills is needed essentially to program 2 relatively simple things.
- decide when to enter the market
- decide when to exit the market
You might say that we may also need to decide how much to buy / sell. We can argue that, at least in trading strategy testing, this is already a secondary priority. Any risk management won’t compensate for wrong entry or exit decisions.
Using this simple approach, we can understand that the best Forex trading strategy description should not need to be programmed each and every time.
Instead, we can just use a simple logical blocks to be able to define our strategy . The idea is that an average person – who is just able to think logically, but not having any programming skills – can understand it easily.
That said, of course, we need to develop the blocks themselves. But it’s one-off effort and you don’t have to do it yourself.
It’s like Lego – you don’t have to create the blocks yourself – just use them.
This is the approach that we used in our Smart Strategy Tester from the very beginning. The 0.9.x series used state machines for trading strategy description.
The all-new Tester 1.0 will bring it to the new level. It provides C++ environment, that we can use to program a trading strategy. But in the next releases it will also provide the way to program and use the blocks discussed above.