1. Advanced Guide To MetaTrader 4 - Introduction
  2. Advanced Guide To MetaTrader 4 - Automated Trading
  3. Advanced Guide To MetaTrader 4 - Expert Advisors
  4. Advanced Guide To MetaTrader 4 - Custom Indicators
  5. Advanced Guide To MetaTrader 4 - Scripts
  6. Advanced Guide To MetaTrader 4 - Strategy Testing And Optimization

The MT4 platform supports automated trading, or system trading. Automated trading involves developing an objective set of rules for trade entries and exits, and programming the rules in the platform's proprietary language (MQL4 in this case) so that the platform can handle all of the associated analytical and trading processes. Perhaps the biggest advantage of automated trading is the ability to remove some of the emotion from trading. Since these systems can trade completely mechanically based on the predetermined rules of a trading plan, dealing with losses or second-guessing a trade entry will not affect system performance. Another significant advantage to trade automation is that the trades are automatically executed with extremely fast reaction times.

An automated trading system must clearly identify buy, sell, stop-loss and profit-target rules. In other words, the system must identify the conditions under which a trade will be initiated (whether a long or a short trade), when the trade should be closed at a loss, and when the trade should be closed at a profit.

The various benefits of automated trading make it a helpful tool for traders, but it is important to remember that certain aspects of automation can fail. For example, if the connection to the Internet or data server is lost, the trader must recognize the error and manually fix the problem. If left unnoticed, a position could unintentionally be left naked in the market (without stop-loss or take profit orders).

SEE:
The Pros And Cons Of Automated Trading Systems

MetaEditor
MetaEditor is MT4's interface used for creating, editing and compiling program source codes written in MetaQuotes Language 4 (MQL4), MT4's proprietary programming language. An Expert Advisors Wizard is a built-in feature of the MetaEditor that assists in the creation of new MQL4 programs. Once a program has been written, it must be compiled in MetaEditor. After successful compiling, the executable program code can be launched and/or tested in the MT4 Terminal. Traders can create several distinct programs using the MetaEditor:

  • Expert Advisors - programs in the terminal that have been developed in MQL4 and used for the automation of analytical and trading processes. Some platforms refer to these as strategies.
  • Custom Indicators - programs developed in MQL4 by the user to function as a technical indicator. Custom indicators are intended for analyzing price activity but not for trading itself.
  • Scripts - programs written in MQL4 and intended to perform a single execution of some action. A script can fulfill both analytical and trading functions. Once a script has completed its function once, it automatically stops.
Advanced Guide To MetaTrader 4 - Expert Advisors

Related Articles
  1. Trading

    The Pros And Cons Of Automated Trading Systems

    Automated trading systems minimize emotions, allow for faster order entry, lead to greater consistency and resolve pilot-error problems.
  2. Trading

    Trading Systems Coding

    Automate your trades by translating your strategy into a language your computer can implement in this hands-free approach to investing.
  3. Trading

    Forex Automation Software For Hands-Free Trading

    Automated forex trading software scans the market for favorable trades based on your input. Find out more about this valuable forex tool.
  4. Personal Finance

    A Day In The Life Of A System Trader

    Systems traders divide their time between trading, developing, backtesting, optimizing and forward testing, to create viable and high-probability trading systems.
  5. Trading

    The Power Of Program Trades

    Learn how programs make up a significant portion of the volume traded each day.
  6. Personal Finance

    Will Your Job Get Eaten by Automation?

    With the rapid growth of technology, it has been widely contested whether automation will start to replace jobs.
  7. Trading

    How To Become A Successful Part-Time Forex Trader

    Getting started in this potentially profitable market is easier than you might think.
  8. Financial Advisor

    How Automation Tech Is Changing The RIA Biz

    Automated technology is changing the landscape of investing by allowing for better investment outcomes, tax efficiency and better-managed portfolios.
  9. Trading

    Top 10 Rules For Successful Trading

    Whether you're a novice or an expert, these 10 rules should be the backbone of your trading career.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center