I am a software engineer who majored in different programming languages, platforms and systems. Around eight years ago my father asked me to program a short piece of code for him in a forex platform called Metatrader 2. That's how I entered the forex world. After two months Metatrader 4 was published. After a few months of programming tasks for my dad I joined a few friends and together we established a small group who offers forex programming services.
During the upcoming years I gained a lot of technical experience with the forex world, platforms and brokers. In addition to the programming knowledge I already had the technical forex knowledge is very important.
I also developed a few forex automatic systems for me and my family which traded with live money. Some in Metatrader and some in dedicated broker's API such as MBTrading.
One of the systems was very profitable. We doubled our account in one month. After backtesting the expert advisor with the Metatrader platform we executed the expert advisor with a money management system and it worked great. After one month it started to loose money and it contradicted my back test's results.
At that moment it was stopped and I started to search for the problem. My conclusion was that the EA had too many parameters, and an optimization over a certain period won't yield the good results in future. It wasn't robust because of the big amount of parameters.
That was my last active attempt until a few weeks ago.
After developing hundreds of systems for other clients I feel that I should develop my own system.
Why? this market is unlimited. "Algo trading" is a common term these days and the market is composed from a lot of other trading robots. (I know - I wrote some of them :) )
The requirements of my target system are:
1. It should be profitable - profit factor of at least two. It means that for every dollar it losses it should earn at least two.
2. Trading frequency - at least a few trades per day. Why? I want to make money fast.
3. Money management - risk a certain percent of your balance in each trade.
4. No hedging
This is an ambitious goal but for me it's the perfect automatic trading system. A high profit factor robot that makes one or two trades per week won't do the job. This system should have a high volume.
The EA would run on the Metatrader 4 platform. Pros - It's comfortable and easy. Cons - execution time is slow and a lot of brokers are dishonest.
The solution: I am going to use a reliable American broker (OANDA) and maybe in the future rewrite it as a dedicated a.
I started the process a few weeks ago. In this blog I will share my thoughts, experiments and results.
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