Is VPS required for my EA?

Virtual Private Server (VPS) is a virtual computer that is offered as an online service.  VPS has its operating system running. As a customer, you will obtain super-user access that will permit you to install trading software (like MetaTrader) on that virtual machine. It will guarantee that your trading software is running without delays. For a forex trader, VPS is a useful tool, especially if you trade using forex robots or if you have signal providing service.

Regarding the nature of your Expert Advisor, the speed of execution can be of crucial importance. Scalping robots and News based robots are the ones whose trading results are positively influenced by the speed of execution. Generally, all Expert Advisors that hold the trade for a short time, operate in very volatile market conditions, or execute many trades simultaneously would significantly increase the performance with a faster connection. Expert Advisor running on VPS will always complete the transaction faster than the one running on a personal computer. The execution speed can be improved further if you use the VPS service provider whose servers are at the same place as your broker's servers.
The service provider's technical support continuously watches the VPS server, so your EA will be safe from intruders, viruses, malware, and other threats. They will install all the necessary operating system and other utility software updates. Moreover, technical support can help you if you have problems installing and configuring your trading software or Expert Advisor.

If you are in a location where you do not have a stable internet connection, VPS is a must-have accessory, especially if you trade using automated trading systems. It also defends you against power outages and ensures that your trading software runs smoothly without delays. It will happen that you will need to restart your machine due to software upgrades, and it may be inappropriate to do so if you have an active trade running. Also, you can execute the transaction while your computer is switched off. So, your VPS will guarantee that your trading platform is always online.
You can reach VPS from multiple devices like mobile phones or tablets, so you can watch your EA operating anytime while you are away from your home computer or laptop. If necessary, you can also allow multiple different users (with additional privileges) to access your VPS. So, it gives you more flexibility.

VPS service price can vary; it is charged on a monthly subscription basis, and depending on the characteristics of the servers, the price ranges from $10 per month to $100 per month. Many providers will offer a free trial period. Some brokers will give you free VPS service if you match specific deposit requirements.

When you decide which VPS service is the right one for you, many characteristics have to be considered. You have to verify what operating system is running on the virtual machine to see if it is possible to install the trading software you intend to use. Also, check if the VPS provider allows you to install all the software you intend to install. The service provider must guarantee that the server will be uptime more than 99.99% of the time.

You have to check the hardware specifications for running your trading software; this is very important if you plan to run more instances of your trading software on VPS. Check how much RAM is offered and whether it will guarantee that all your trading software will run smoothly. Moreover, the required level of operation stability is secured with Hyper-V technology for users that run forex VPS on Windows servers. At the same time, OpenVZ will give the same strength on Linux servers.

Server location is another essential factor that you should consider; it should be the same location as your broker's server location. Check if there are any limits regarding speed and traffic. Finally, check the price, take the cheapest that has all your required features.

Thus, VPS is a must-have tool if you trade using Expert Advisors or have subscribed to signal service. It will increase the performance; your trading software will be protected and easily accessible. Also, you will be sure that it will run all the time and it will improve your trading results.

Where I can find a good MQL developer

MetaQuotes Language 4 (MQL 4) is a programming language that is used to program Expert Advisors, Custom Indicators, Scripts and even libraries for Metatrader 4 trading platform. It is not a simple programming language and if you do not have any programming knowledge it might be hard to learn the language.

However, it does not mean that you will not be able to automate your trading strategy. In order to do so, you can rent an MQL 4 developer. The best resources are:

1. Upwork – a leading freelancing platform where you can find experts from many different fields including MQL developers


2.  MQL5.com – a platform specially dedicated to MQL developers


3. Freelancer -  another popular freelancing platform

Profitable trading using Forex Robots (2)

Due to huge interest was shown in the previous post about commercial Forex robots. I have decided to extend the list of recommended ones by two new ones.

• WallStreet Forex Robot
• Trading pairs:  EURUSD, USDJPY, GBPUSD, USDCHF on 1-hour time-frame
• Average weekly gain: 2.24%
• Min. deposit: $1000
• Independent test results #1: Link
• Independent test results #2: Link
• Order website

• Forex MegaDroid
• Trading pairs:  EURUSD on 1-hour time-frame
• Average weekly gain: 0.38%
• Min. deposit: $1000
• Independent test results #1: Link
• Independent test results #2: Link
• Order website

Once again, I remind you that before you start trading on a live account follow the procedure explained in the previous posts about the robots and keep in mind the rules about the testing.

  

When is your Expert advisor ready for live account trading?

Whether you have developed or purchased an Expert advisor there is a certain procedure that has to be followed before the Expert advisor is ready to trade on a live account. 

The first step is called Back-testing. Back-testing can be performed with the Metatrader platform using a Strategy Tester tool. Back-testing is not reliable, however, it is the first step, it is fast and it can give you some picture of your robot. Back-testing results should not be considered at all if your modeling quality is under 90%. Modeling quality can be improved if you import the history data. That data can be found at forextester.com. 

Strategy tester has two very useful back-testing features: optimization and visual mode back-testing. Optimization compares the trading efficiency with different values of robot entry parameters. It can help you to choose the most profitable combination. Back-testing in visual mode is very interesting when you are developing your own Expert advisor, so you can check does the robot follows your strategy completely.

 

When your Expert advisor accomplishes satisfactory results on back-testing, it is ready for the testing on a demo account. So, put the EA using the best performing back-testing entry parameters on a demo account and leave it for 3 weeks to three months. The duration depends on the time-frame EA has been using. For EAs trading on 1-minute charts, 3-week testing is fine; those trading on 4-hour charts should be left for 3 months on the test. If your EA has achieved satisfactory results on a demo account, it is ready for live trading.

 

Optionally, to be more certain you can start live account trading on a smaller account or using a smaller amount of lots (if is it available) as an entry parameter. Then after one month, you can switch to live to trade on the normal account. 

Well, if you have followed the testing process completely and if your EA has successfully passed all steps. You will certainly enjoy live account trading.

Manual Trading vs Automated Trading

There is a constant debate on which type of trading is better: manual trading or automated one (using EA robots)? Well, while surfing on the Internet you will find different opinions about this subject. Some would opt for manual, while others will say automated one and both sides will have good arguments to support their stance.

After being an active participant in the Forex market for several years and having tried both techniques I would say that both are good. Actually, the right question should be: Which style suits you better as a trader? The fact is that EA robots cannot replace human thinking, but also robots are not affected by greed and emotions, two big human weaknesses that affect the traders. The robots can work on the market for a longer period of time and they won't miss a trade due to lack of concentration. Also, the truth is that the experienced human trader will earn more than a robot.

So, which style to choose? Well, it depends on you. If you can overcome greed and emotions, if you can trade in full discipline following the rules set previously and if you can fully dedicate yourself to the trading than chose manual one. But if you see trading as a second job, if you are vulnerable to greed and to emotions, automated trading will be the one for you.

For those that chose automated trading, there are two options left: you can create your own EA robot using MQL or any other programming language, or you can buy one. But be careful, if you decide to buy a robot because there are very few commercial ones that can trade profitably. Lots of scams are offered on the Internet. So, I advise you to find an independent review before you decide to buy a robot.