Forex is a globally distributed market where you can trade all currencies and assets. Currently, it is the largest financial market in the world where daily trading volume exceeds $5 trillion on average. There are two types of strategies to trade in the forex market: technical analysis and fundamental analysis. Fundamental analysis refers to analyzing the market by looking at news, social and political forces, financial reports, and economic announcements. On the other hand, technical analysis uses charts in order to visualize historic data and study price movements.
Sometimes, it is difficult for a trader to stick to their computer for 24 hours to take care of all these. However, it is also not possible for traders to just ignore the market for a prolonged period because they can lose their opportunity to enter a profitable trade. This is where forex EAs come to use. You can learn about them better from forex EA programmers.
What is a forex EA?
Forex EA is a trading robot. To put it simply, it is an automated forex trading program that automates analytical and trading processes in the forex market. Traders can use the EAs to solve the problems of trading that can be caused by a human. It is able to analyze data and trades by following a trading instruction. The best part is that it sticks to the instructions and makes the valid decisions without being influenced by emotions. Moreover, it reacts to quick market movements instantly, and as mentioned earlier, it works and keeps the trades going even when the trader is not present in front of the computer. These are the reasons more and more people are using trading robots these days with the help of forex EA programmers.
Who are forex EA programmers?
Forex EA programmers are software developers who have skills and experience in developing trading systems. They also have knowledge about certain trading platforms along with their programming languages. When you hire a forex programmer for your EA, make sure they have three key skills. First, they must have a good understanding of the trading platform that you would use to run the forex robot, as well as its capabilities and limitations. Secondly, they must know the native programming language of the platform inside and out to make sure that the code runs as efficiently as possible. Finally, the programmer must understand what problems trading systems may cause, including logic flaws, bugs affecting performance, and common pitfalls.
How are forex EAs programmed?
Forex EA programmers usually follow these basic steps to program the EA:
- Observing price movements
By watching and monitoring the market, it is possible to recognize patterns that continue to repeat. Programmers also do simple backtests to identify patterns that they can exploit.
- Identifying tools or indicators highlighting the price movements
Every trading system requires price levels or indicators that alert the system about the trading opportunities. At the same time, it is also important to filter out the signals you need to avoid. Indicators and price levels are also needed to exit trades.
- Note down the instructions
As mentioned earlier, forex EAs follow a set of instructions while trading and stick to it. So, when a trading robot is programmed, it is vital to create a set of definite instructions describing the trading system. The more details are included, the better it is.
- Developing the robot
Now it comes to the step to actually build the robot. Programmers turn the ideas and instructions into code that the trading platform can understand. Forex EA programmers have the necessary skills to ensure that the forex EA is developed exactly the way the client wants it to be.
- Backtesting, paper trading, and optimization of the EA
Once the programmer is done programming the forex EA, it is needed to be tested and the parameters must be optimized. First, it should be done on historical data, and then real-time data and a demo account can be used. This step is very important to learn about the true abilities of the robot. Thus, traders must take their time to make sure that the robot is always profitable under any market condition. Another thing is applying filters and deciding when the EA is to be turned on and when not.
After the EA is tested thoroughly, it is ready to trade with real money. However, you should still monitor its performance to make sure that it is performing as expected.
