What kind of strategies are there for Expert Advisers(EAs) on MT4? Find out more with the STP/ECN broker, Yadix!
This article is originally referred from Yadix Blog.
An Expert Advisors is a software program that automates the analysis of the Forex markets and executes all orders of a programmed trading strategy with the MT4 plug-in.
EAs (Expert Advisors) are programmed to operate on the MT4 platform and are coded in the MQL language of MetaTrader, no other trading platform has the capabilities that MT4 provides.
Any strategy can be programmed into an EA, including Scalping, News Trading, Trend, Break-out and many more.
Below are some of the most popular strategies of Expert Advisors:
An Arbitrage EA will read the price action of one broker (or price feed) and execute trades on another broker.
It takes advantage of a faster feed to execute trades already knowing which direction the market is heading to give the EA a massive trading advantage.
Arbitrage trading can lead to disqualification on market making or dealing desk brokers as a market maker will make profits on client’s losses.
Yadix on the other hand is a true STP broker and makes money only on the spread or commission (ECN) and therefore arbitrage trading is allowed at Yadix.
Scalping strategy makes many trades of smaller volumes over a short space of time to generate small but regular profits based on fast moving markets.
This strategy is also not welcome at most market making (dealing desk brokers) due to the fact that it is often a very profitable strategy.
As Yadix does not trade against its client welcomes Scalping and our trading conditions and execution speeds make Scalping a very popular and successful strategy at our brokerage.
These EAs rely on speed, are very active and will require a Forex VPS for efficient trading.
Yadix has a range of high-specification VPS available our traders can enjoy for free.
Hedging strategies are implemented mainly to control risk and reduce potential losses.
Many brokers do not allow hedging and make sure hedging is not implemented by charging margin for one or two legs of a hedged order.
Yadix allows 100% hedging with zero margin requirements and traders can even hedge when their accounts have negative margin available to reduce risk and help our traders succeed.
4, Martingale Strategy (Averaging)
Martingale is implemented to many EAs as the returns can be extremely attractive.
Essentially, the EA will execute trades continually, each time it will increase the volume slightly to ensure that the profits from the trend it is trading will be maximised with slight increase in risk each time.
The Yadix trading infrastructure is carefully set-out and designed to support all Expert Advisors regardless of strategy, frequency, volumes and more.
The Best Trading Conditions for EAs(Expert Advisers)
Below we have highlighted the main aspects most EAs need to be successful, however, if what your EA needs is not listed, our support team can help.
Yadix offers up to 1:500 leverage on all accounts, so no matter your EA or risk preferences, Yadix can help you be successful with your EA.
Our accounts offer the lowest market spreads, with major pairs starting from 0.0 pips. Due to deep liquidity, our spreads remain amongst the tightest even during volatile or abnormal markets.
3, Speed of Execution
Most EAs rely on fast execution, so how does Yadix match your EAs requirements?
Trades are executed to our Liquidity Providers as fast as 6ms, with recorded average statistics show that more than 99% of trades are executed in less than 15 ms.
4, No Last Look
The term Last Look simply means that a brokerage has the opportunity to reject a trade.
As trades are executed anonymously (the liquidity only sees a buy or sell order and no stop loss, take profit or any other details) the liquidity must accept the order and execute it.
5, Market Depth
As Yadix uses 15 Liquidity Banks and ECNs as liquidity providers, we have the best possible market depth 100% of the time.
Furthermore, execution of trades uses the best bid and ask price method, meaning you will always be executed at the best possible price available in the real markets.
6, Trading Restrictions
Many brokerages do not allow high frequency traders or short term fast execution, they restrict these strategies by implementing minimum market distance restrictions.
For example, they will force you to leave a trade open for a minimum time or you won’t be able to close a trade until the market has moved a minimum pip distance.
This is a disaster for Scalpers or high frequency traders.
Yadix offers you no such restrictions and you have the freedom to open and close orders within the same second and with zero pip levels.
7, Dealing Desk / STP
Remember a Dealing Desk brokerage will make money only when you lose, and will do all they can to make their conditions so that the likelihood of client’s losses is greatly increased.
An STP or DMA broker makes money based on the volumes traded, and therefore it is in their interest to give you the best conditions possible to help you succeed and trade more.
Now that you’ve learned more about EAs and insights into why not all brokers are suitable, you are welcome to open an account at Yadix and even gain access to good performing EAs that are shared in our community of traders, see more details here.
Original Source: Yadix Blog