Have you ever heard the exact meaning of words like MT5, MQL5, and EA?
These are the words you need to understand to get started in automated trading.
And now that you understand the steps needed to create an automated trading tool EA, let’s get you organized to get started in automated trading!
When you can create an automated trading tool, you can create an automated profitable tool.
But that makes it more difficult to create, and we will explain why.
MT5, officially named MetaTrader 5, is a trading tool developed by MetaQuotes.
This trading tool allows you to
You can do these things. However
The main function is automatic trading.
By using this automatic trading function, MT5 will automatically buy and sell as long as the PC is turned on and MT5 is running.
What is needed to perform this automatic trading is a program called an EA.
EA stands for Expert Advisor. The literal translation is “professional advisor,” but the name seems to reflect the nuance of an expert robot that performs trading.
EA = Automatic trading tool
When you see the word EA, you can think of it as a program that performs automated trading.
So how is this EA made?
This is where the word MQL5 comes in.
MQL5 is a programming language for creating EAs.
In other words, you create an EA on MT5 by programming in the MQL5 language.
You can create an EA by coding in MQL5 and compiling it.
Therefore, to run an EA, you need to know
You need to understand the following three things.
The above information is summarized in the diagram below.
Programming on MT5 using the language MQL5 → Create EA → Execute the created EA on MT5.
Only then can you start automated trading.
In other words, you need to have
knowledge of finance as well as programming knowledge, and you also need to understand how to use tools such as MT5 and EAs.
This is why it is difficult for many people to start automated trading.
There is a way to purchase EAs from an external vendor without programming, but
since you are trading with strategies created by others, you often cannot modify them or make the trades you want to
Contra is a service that converts strategies created on the app into EAs.
You can back-test on the app and find a good strategy by yourself.
Then, by converting your created strategy into EA, you can use EA to trade automatically without difficult programming.
By converting EAs, even those who have never been able to trade automatically will be able to trade automatically based on their own rules.
Are you aware of your position holding times in Forex? There are several things to keep in mind about holding times. It is one of the items that should be checked in the back testing of a system trade.