Live Trade Example with Forex Expert Advisor

How to Use InacEA in a Live Forex Trade

In today’s article, we will talk about a typical trade that was made with the IgnacEA, which was described in an earlier blog post.

Why are we describing a trade with an EA? We are doing this to demonstrate that using an EA actually works, contrary to the belief of many traders. The fact that many traders have had bad experiences with expert advisors does not mean that they are totally bad. We want to use this article to show that trading with EAs actually works.

In order to take this trade, we decided to choose an exotic currency pair (USDZAR) which is not to trade with a very wide range, and which trends strongly. The USDZAR has a daily movement that exceeds 1000 pips, which is very suitable for a trading strategy based on strong trends to make profit.

This is where IgnacEA forex expert advisor comes in. It is designed to trade strong trends, using filters that prevent buy trades at resistance levels, and sell trades at support levels. All we needed to do was to open the broker’s platform and attach the EA to the chart. Once the trading conditions were fulfilled, the EA entered the trade.

You can see from the trade results that the expert advisor we used was able to rake in 203 pips from this trade. This result has been replicated several times by this EA.

The reason why we have discussed the use of an EA as a trade strategy in forex is to show traders how they can replicate these results. We have outlined these in a few simple steps below:

The first rule in the use of expert advisors is to develop a system, or take a forex trading system and test it on demo for several months to make sure it actually works. This is where most expert advisors get it all wrong. The trading systems on which most of the junk expert advisors out there are based on are faulty. Some cannot stand the test of time, and some are just based on outrightly bad strategies that do not work. So get this step right and make sure the system on which your expert advisor is to be based actually works.

The second step is to get a Metaquotes Language coder to encode the system and set of rules into an expert advisor for you. Any good EA has to have a forex trading system and a set of rules for its operation. If your EA decides to open a trade when high-impact news items are at work in the market, even an EA with the best of systems is likely to get caught out. Your coder should incorporate a code into the EA blocking all trades as the news releases approach. You may need the forex trading calendar for this.

Thirdly, test your EA. Lack of EA testing will fail to reveal any bugs that are in the EA. I have once coded an EA only for me to discover on testing, a fundamentally flaw that would have made a very good EA to suffer very steep losses. So test your EA before it is used.

The last item we will touch on is the issue of security of your EA. The internet is sprawling with copyright thieves, looking for profitable software to pirate. DO not let your profitable EA become one of them. Protect your EA with a whole range of procedures that block decompilation, and only allow authorised users to access and use it. Some of these methods are costly to implement but they are worth it at the end.

When you have done this, you will have an EA that you can be sure will work very well. The EA will now become your forex trading strategy which you can add to your account and use as you like.