Creating a Simple Expert Advisor
For many of you, the topic of automated trading is still new but you are certainly interested in how an EA is created. I have listed the 10 steps for you here and would like to show you the complexity once. Of course, you can also approach the topic so that you simply try to create a simple EA. I guarantee you an exciting time:
Step 1: Define Your Trading Strategy
Before you start, you need to know exactly what your EA should do. Determine entry and exit rules, money management strategies, etc.
Step 2: Open the MetaEditor
MetaTrader comes with the MetaEditor, a development tool specifically used for creating EAs and indicators.
Step 3: Create a New Project
In the MetaEditor, select ‘New’ to start a new project. Select ‘Expert Advisor (Template)’ and give your EA a name.
Step 4: Program Your Trading Strategy
Use the MQL4 or MQL5 language to code your trading strategy. Write the code for the trading signals based on the rules you defined.
Step 5: Code Debugging
Test and debug your code to find errors and make sure everything works as intended.
Step 6: Backtesting
Use the Strategy Tester in MetaTrader to see how your EA reacts to historical data. Tweak your EA based on the results.
Step 7: Demo Testing
Test the EA under real market conditions on a demo account to see its performance without financial risk.
Step 8: Optimization
Based on the tester results, you can optimize the parameters of the EA to get the best performance.
Step 9: Go Live
Once you are satisfied with the results, you can deploy the EA on a live account. Start with small capital to minimize the risk or better yet use a demo account!
Step 10: Monitoring and Adjustment
Monitor the performance of your EA regularly and adjust it as needed to keep up with changing market conditions.
My Pro Tip: Please note that creating an EA requires good knowledge of programming in MQL4/MQL5 and a solid understanding of trading strategies. I suggest that you see this as an exercise if you are interested in it, maybe to be able to better evaluate other EAs in the first step.