- VPS and Expert Advisors can automated trading 24/7
- Why Automated FX Trading is recommended?
- MT4 is recommended for EA Automated Trading
- VPS required to run EAs on MT4 24 hours a day
- Which is the Best VPS Service Provider?
- Precautions when using VPS and running EAs
- Is MT4 the best trading tool?
- Features and Trading Tools of MT4
- Use Windows to run MT4 platforms
- What is EA and its merit?
- Advantages and disadvantages of MT4 EA
- How to run EAs on MT4 platform?
- How to choose the best EAs to trade on MT4?
- Points to check when using MT4 EA
- Logic to be set for EA automatic trading
- Backtest and forward test your EAs first
- 4 main precautions when using EA
VPS and Expert Advisors can automated trading 24/7
The appeal of Forex is that you can basically trade at any time on weekdays.
Therefore, some people want to trade at any time and stick to the market all the time.
It would be nice if that would improve the performance of the transaction, but in the end, you could often continue to lose and often lose the whole money.
Automatic trading is perfect for those who want to trade efficiently and at the right time to prevent this from happening.
There are various types of automatic trading, but this time we explain VPS recommended for those who want to use MT4, which is popular among automatic trading.
Why Automated FX Trading is recommended?
Have you ever seen on the websites of Forex companies that “It is attractive that you can trade at any time because the market price of FX is moving 24 hours a day?”
Certainly, Forex is open 24 hours a day on weekdays and you can trade whenever you want.
But that is not equal to being profitable. In order to make a profit on Forex, you need to trade at the right time.
The main reason for quitting Forex is the “disadvantages of discretionary trading“.
The right time is, for example, when multiple technical indicators indicate the occurrence of a trend.
If you can trade well at such timing, the possibility of making a profit with Forex will certainly increase.
But no one knows when such timing will occur.
Even if you want to stick to the market so that you don’t miss a deal, many people may not be able to check the market as you wish due to work during the day, housework, childcare, etc.
As a result, it is not uncommon for physical strength to be exhausted and for the loss to increase without being able to make a normal market judgment.
Some people stop FX because of these things.
In order not to fall into the cases mentioned above, some FX companies also have a function to notify by email or application when the set signal comes out.
However, it is not always possible to trade at that time.
In the case of discretionary trading, whether or not you can seize the opportunity of the trade you have visited depends on the situation of the trader.
In addition, discretionary trading has the disadvantage of not being able to enforce trading rules and causing losses and expansion.
Not limited to Forex, traders who quit without making a profit on investment products such as stocks and commodity futures often do not adhere to the trading rules.
When you make a profit or lose money, you don’t follow the rules and it makes the situation worse.
In the case of discretionary trading, it is necessary to enforce the trade rules, and for that purpose, a strong trade mentality that is not overlooked is required.
However, many traders stop trading due to exhaustion of funds or mental fatigue before they acquire such mentality.
For discretionary trading, this is a major drawback.
It is automatic trading that you can trade with less burden on Forex.
Automatic trading has emerged to overcome these problems.
Automatic trading will automatically buy and sell when the market price meets the specified conditions.
Therefore, even if a trader cannot trade due to work etc., he will not miss a trading opportunity.
In addition, it is possible to overcome the disadvantage of “cannot thoroughly enforce trading rules” that is often associated with discretionary trading.
Automatic trading, which is less time-constrained and less mentally burdensome, is gradually increasing its presence in Forex.
MT4 is recommended for EA Automated Trading
MT4 (Meta Trader 4) is the most popular among such automatic trading.
Not only can you use MT4 for free, but you can also buy and sell automatically at Forex companies that can trade using MT4.
MT4 is characterized by many traders using it as high-performance chart software.
Many Forex companies use MT4 as a trading tool, so MT4 is used as the main trading tool.
MT4 also allows you to create automated trading programs.
However, this requires knowledge of the programming language MQL4, so the hurdles are a little high and not everyone can easily create it.
Therefore, it seems that there are many traders who customize the EA distributed free of charge and use it after repeating backtesting to improve performance.
By performing automatic trading using this EA, even if the trader does not stick to the market price, the market price can be monitored for 24 hours and automatically traded when the timing that meets the conditions arrives.
Recently, the number of FX companies that can use MT4 as a trading tool is increasing, albeit little by little, not only companies that have their own indicators but also companies that can buy and sell automatically.
VPS required to run EAs on MT4 24 hours a day
When you perform automatic trading using MT4 in Forex, the system monitors the market price 24 hours a day and trades at the timing that meets the conditions.
However, in order to do so, you have to leave your computer on and start-up MT4 all the time, so it costs a lot of electricity.
Even if it is okay to pay such a cost, if a power outage occurs due to a lightning strike, automatic trading will stop and there is a possibility that your computer will malfunction.
In addition, there is a possibility that you may inadvertently forget that you are trading automatically and make the mistake of turning off your computer as it is, and a family member who does not know that you are trading Forex with automatic trading may make a mistake.
It is possible that you will turn off your computer due to various reasons.
Then some people may think that how about downloading MT4 to a rental server or a dedicated server to avoid this situation.
However, the rental server has the disadvantage that it is not easy to use because MT4 cannot be downloaded because the administrator authority is not granted, and the dedicated server is expensive.
The VPS server solves the whole problem.
The VPS server is officially called “Virtual Private Server”.
Even though it is a shared server, MT4 can be downloaded like a dedicated server.
By using the VPS server, MT4 can be operated on the network for 24 hours, which has the advantage of minimizing the problems mentioned above.
Also, since MT4 is installed and used on Windows on VPS, you can use it as if you were trading on your own PC.
It should be noted that even people who normally use MAC, and people who normally make transactions on smartphones and tablet terminals can easily use VPS.
Since VPS allows remote desktop settings, it also has the advantage of being able to be accessed and operated on the device you normally use.
The biggest advantage of VPS is that you don’t have to keep the power on all the time like when you run MT4 on your own device, and you can keep MT4 running on the VPS even after the power is turned off.
Which is the Best VPS Service Provider?
Yadix is an online Forex broker which provides free London VPS.
By using Yadix’s free and high-spec VPS, you can connect directly to over 15 liquidity providers to reduce delays and take advantage of transactions with faster and more accurate orders and executions.
Yadix’s free London VPS offers ultra-fast execution of an average of 2ms, accelerating trading and reducing slippage.
With only a $500 minimum deposit, you can use your Silver VPS, and save on transaction costs and money on investment activities.
For more information about Yadix’s free London VPS, visit the page below.
Precautions when using VPS and running EAs
Forex trading on MT4 using VPS server has many advantages for traders who want to buy and sell automatically, and it is very attractive.
However, if you use a VPS server, it is not always the case that you can keep MT4 running 24 hours a day, 365 days a year.
For example, the server could restart for some reason.
In that case, if you do not set the automatic start of MT4, MT4 will not be restarted and you will miss the timing to place a new order or the timing to place a settlement order.
In some cases, you may have unexpected unrealized losses.
When using MT4 with VPS, it will automatically buy and sell even if it is left unattended, but it is not always okay to leave it completely unattended.
In order to avoid the troubles mentioned above, make the minimum settings such as regular restart of PC and VPS, stop of automatic update function of Windows, virtual memory setting of Windows, and automatic login.
Using MT4 with VPS is a very attractive way for traders who want to trade automatically.
Let’s use it after considering not only the budget but also how much spec server you want to use.
With Yadix’s you can choose from 3 VPS plans and each plan requires different amounts of the minimum deposit amount.
In addition, automatic trading by MT4 using VPS allows you to trade loosely, but if you leave it completely, unexpected troubles may occur.
Keep in mind that even if this doesn’t happen, you’ll need to do minimal configuration and maintenance.
Is MT4 the best trading tool?
What trading tools should I use to get started with Forex?
If you want to trade anyway, you would choose a trading tool that is easy to use, convenient and has excellent functionality.
It is possible to trade without problems even with the trading tools provided by each Forex trader for free, but if there is a better trading tool than that, you would definitely like to use it.
MT4 is a high-performance platform, and as it is a trading tool loved by traders all over the world, many fans are using it all over the world as well.
However, no matter how convenient the trading tool is, it is meaningless unless it can be used correctly.
What exactly is MT (MetaTrader) 4 in the first place?
MT4 is a high-performance platform developed by MetaQuotes Software of Russia and is now available for free.
Features and Trading Tools of MT4
In the case of MT4, in addition to the original indicators, etc., you can also use it yourself by downloading newly developed indicators and automatic trading programs.
Furthermore, in MT4, by using a programming language called MQL4 language, it is also possible to develop an automatic trading program called an indicator or EA independently, and if you are an excellent trader, you can sell EA for a fee.
EA is a software (system) for automatic trading that can be started with MT4.
MT4 can create conditional statements and entry/exit statements with a specialized program.
The greatest feature of MT4 is its high level of customization.
Even existing technical indicators can be customized freely by changing the values and improved to your favorite indicator.
You can create your own chart that doesn’t exist anywhere, which is the real pleasure of MT4 and the reason why it is supported.
Even automated trading programs can be created, and MT4 can verify the trading program at any time.
By using MT4, it is also easy to download a trading program developed by a good trader and use it for automatic trading.
For traders interested in system trading, MT4 is a very attractive and powerful platform.
Use Windows to run MT4 platforms
MT4 is a very convenient and high-performance platform, but there are some precautions when using it.
First, depending on the computer, MT4 may not be compatible and may not be used.
If it is Windows, there is no problem because it is basically supported, but since Mac is not supported, MT4 may not be available as it is.
In order to use MT4 on Mac, troublesome procedures such as using a tool which can install MT4 for Mac are required.
Therefore, if you use MT4, it is better to keep your Windows PC as the main computer.
What is EA and its merit?
EA is an abbreviation for “Expert Advisor”, and it refers to an automated trading program developed mainly by MT4.
If you download an EA to your MT4 via the Internet, you can trade the system using the automatic trading program developed by others.
It’s easy to understand that manual trading is hard and EA is soft.
However, EA is not all-purpose as there are EAs that are not effective unless it is set for a specific currency pair.
Each EA has its own individuality, such as “EA that cannot be won unless it is a trending market” and “EA that works favorably in a range market”.
For that reason, it is better to select multiple EA’s instead of one, and traders are required to devise such as selecting the EA that is most likely to produce results according to each market price.
Above all, while the developer says that this EA can win, when you actually use it, it is possible that you can not win and you inflate the loss.
Therefore, you should backtest to see if you can really win when you download the EA.
Advantages and disadvantages of MT4 EA
Discretionary trading, where you trade at your own discretion, has the disadvantage of being emotional.
No matter how calm you are, when you start Forex, you may forget yourself and become emotional, make transactions that you would not normally do, fail, and suffer great losses.
On the other hand, automated EA trading on MT4 can run your accounts constantly.
There are various advantages and disadvantages of using MT4 EAs.
Advantages of MT4 EA
The advantage of EA is that there is no such emotional failure.
With EA, the system will automatically repeat buying and selling according to the preset settings, so you will not be emotional under any circumstances and will always trade lightly.
As a result, traders do not have to trade at their own discretion and do not have to check charts 24 hours a day, which reduces the physical and mental burden and allows them to trade comfortably.
EA is a feature that has many advantages for traders who are usually busy with work and cannot easily trade by themselves.
Especially in the case of EA, beginners who are still inexperienced in Forex have the advantage because they can try the automatic trading program made by excellent traders.
If you are a beginner with little experience or knowledge, there is a limit to devising trading rules that you can win on your own.
However, by relying on the EA developed by an experienced and excellent professional trader, you can start FX while making up for your lack of experience.
If you are an advanced trader with some trading experience, you may be able to further customize and improve the downloaded EA in your own way.
By doing so, you may be able to increase the winning percentage of EA and aim for further profits.
Disadvantage of MT4 EA
Once you download the EA and start it, the system will automatically repeat buying and selling, which is an attractive EA, but there are disadvantages if there are advantages.
First of all, EA has the disadvantage that it is difficult to be flexible even in the unlikely event that it is an automatic trading program.
In particular, when a personal computer is malfunctioning, we cannot predict what will happen.
Traders should constantly check the status of their PCs to see if they have any problems with their PCs.
Above all, it is not known whether the EA you are currently using is an automated trading program that you can earn or not until you put it into practice.
Certainly, it is possible to perform some verification by backtesting, but it is dangerous to believe the backtesting result because there is a slight difference between the actual result and the backtesting result.
So you should use your own eyes to determine if this EA is really usable.
How to run EAs on MT4 platform?
Follow the steps below to install EAs on MT4 and start automated trading.
- MT4 installation
Before you can use EA, you need to install MT4 in advance.
- Download EA
In addition, download the EA you want to use in MT4 and import it.
- Start MT4 and select “Tools” and “Options”
After completing the preparations, when using EA, first click “Tools” and then “Options”.
- Click “Expert Advisor” in “Options” and check “Allow automatic trading”
In the “Options” window, there is an item that says “Expert Advisor”, so click it. Next, check “Allow automatic trading”. Finally, click “OK” to start automatic trading.
- Click “OK”
Once you have started the automatic trading of your EA, the next step is to select a currency pair. The EA is now operational. If you want to stop the EA, select Delete from the “Expert Advisor” menu. By deleting the EA, you can stop the operation of automatic trading.
How to choose the best EAs to trade on MT4?
With MT4, anyone can trade systems using the excellent automated trading programs used by traders around the world.
However, the number of EA is very large, and some are good and some are bad.
How do you choose an EA that you can earn?
There are various points to see when choosing a better EA for MT4.
1. Profit factor
The “Profit factor” is basically the profit margin, which is the value obtained by dividing net income by profit or loss.
An EA with a higher Profit factor value can be called an EA with a better profit margin.
A Profit factor of less than 1 will result in a non-profitable EA and should be avoided.
Ideally, the Profit factor should be 1.5 or higher.
2. Maximum drawdown
The “maximum drawdown” is the amount of continuous fixed profit and loss, and if the maximum drawdown amount is 50% or more of the invested funds, it will be a very dangerous EA.
The maximum drawdown is, in the end, how much the assets will decrease in the future, as it shows the possibility of risk, it is better to be low.
3. Win rate
The “win rate” is certainly an important point when choosing an EA, but unless you scrutinize the details of each win, it is not clear if it is a really good EA or not.
Even if the winning percentage is high, if you have to salt it for months to win, it will not be suitable for those who want to buy and sell in the short term.
Above all, even if the winning percentage is high, if the profit you can earn each time is lower than the loss when you lose, you cannot increase the profit.
It is better not to choose EA just by looking at the winning percentage.
4. Number of transactions
The “number of transactions” should be viewed together with the winning percentage.
If you have an EA that trades more than once a day and has a higher win rate, it is highly likely that you have a very good EA.
Points to check when using MT4 EA
There are different types of MT4 EA.
Therefore, when using an EA, it is necessary to check “whether the EA suits your investment style” and “whether there is no problem in terms of trading rules”.
For example, if you are mainly doing scalping trades, it will be difficult if you use the EA of the logic that “position settlement is done on a weekly basis”.
In addition, there are various EA logics such as currency pairs and indicators are set.
It is also a point to check if the EA and your MT4 environment match, such as “Is there a problem with the currency pair?” “Is the necessary indicator for EA already installed?”
Another thing to note is that, on rare occasions, EA works like a defective product.
There are EAs that “the logic of the entry timing part is buggy” and “the logic that does not cut the loss is set”, so it is clear what kind of trading rule is used for automatic trading.
Check your entry/payment logic with your own eyes to see if it matches your trading rules and style before proceeding to the backtest.
Logic to be set for EA automatic trading
When you make your own EA automatic trading, you can set something called “logic”.
Logic is like “trade rules” such as “If you make a profit of how many pips, make a profit-taking settlement”, “If you make a loss of how many pips, cut the loss”, “Buy when the moving average becomes a golden cross”.
There are two logics that should be set for EA automatic trading: “trading judgment based on multiple technical analysis” and “logic for “take-profit” and “stop-loss” with “small loss”.
The trade decision by the technical analysis using EA should be made with multiple technical oscillator related indicators in order to remove the deception.
Logic such as “25-day moving average and candlestick golden cross + buy entry when RSI is 30 or less” is a preferable example.
Next, in order to survive as an FX trader, “small loss and large profit” is indispensable.
Therefore, the conditions for closing the position should be such that the profit is 200 pips or the loss is -100 pips, and the profit is large with respect to the loss.
At this time, it can be said that the ideal rate is profit:loss = 2:1 or more.
Backtest and forward test your EAs first
No matter how good an EA you find, don’t just use it in practice too soon.
First of all, do a backtest using past data, and do your own research on how much profit you will make and how much loss will you make if you use the EA to actually manage the asset.
Don’t swallow exaggerated ads with upward-sloping graphs.
There are many free EA these days, so it’s almost free to download.
However, if you neglect the verification work by backtesting and put into real practice suddenly, you will incur losses that should have been avoided, and you may suffer painful damage.
In addition to backtesting, it is important to reduce risk by checking the results of forward testing, which is the current trading result.
Be sure to do these tests to check the reliability before putting it into practice.
EA is certainly a convenient system that automatically trades, but after all, it is just a system.
It doesn’t think like humans, so no matter how much loss it causes, it will automatically repeat the automatic trading without worrying about it.
After all, the last thing you can trust is what you see with your own eyes.
Just because you find an EA that looks good, don’t take that information for granted, and be sure to backtest and verify it.
4 main precautions when using EA
There are four important things to keep in mind when using an EA.
The first point is that you need to have MT4 running continuously when using EAs.
Of course, in order to use EAs, it is necessary to start MT4 with the internet connection.
Therefore, it is possible to fall into a situation where MT4 is forcibly terminated while holding open positions, and stop loss is no longer possible.
When using EAs, be careful of the connection status of the environment, and of course, don’t forget about anti-virus measures.
The second point is that when using an EA made by another person, there are many cases where some compromise is made.
It’s hard to find an EA that meets my ideal trading rules.
Therefore, there are cases where even if you try to use the EA that you have compromised and selected, you will not get the results you expected.
You may feel frustrated because the performance you expected will not be achieved and the loss will be large, but in such a case, it is important to decide to stop using the EA.
In addition, EA automatic trading has logic built-in on the assumption that price movements will move according to certain rules.
Therefore, it is recommended to disconnect the EA before economic indicators such as employment statistics where volatility is expected to increase.
Finally, we need to be careful with the EAs provided by brokers.
Even if the EA is exactly the same, the EA may not work well because the trading conditions and available ordering methods differ depending on the broker you trade.
When introducing or making your own EA, make sure to check that it works properly with the broker you have opened an account with.