EA development specialists explain clearly and politely! Beginners guide to automated trading from zero | Episode 1 [FX Noble]
FX Noble’s Profile
He shifted from discretionary trading to automated trading and has been an EA developer since 2017, listing on GogoJungle. His代表作 "Scalping Dragon" (Scalping Dragon) is among his bestsellers, with a total of over 1,000 copies sold. He also shares various information about automated trading on his blog and Twitter.
Official Blog：FX Noble's EA Development Blog
Twitter：https://twitter.com/yenpetit
※This article is a reprint/edit of an article from FX攻略.com January 2019 issue. Please note that the market information written in the main text may differ from the current market.
What is Automated Trading in FX?
When people hear about automated trading in FX, what image comes to mind? The term "system trading" is familiar to many. Recently, robo-advisors—AI (artificial intelligence) investment funds—are also becoming popular, but in FX, if you use a tool called MetaTrader 4 (MT4), you can start automated trading easily by using commercially available automated trading software.
Advantages of Automated Trading
The biggest advantage of automated trading is that you don’t have to watch the charts every day. Discretionary trading naturally requires more time monitoring on a monitor or smartphone, increasing physical and mental burden. Therefore, automated trading is especially recommended for part-time traders who have limited time. Also, you don’t need to verify and develop your own trading strategy. Most Expert Advisors (EAs) have been proven profitable through pre-backtesting (testing on past charts), so users just need to properly check forward testing (performance during actual operation).
Disadvantages of Automated Trading
Automated trading is very convenient, but it has drawbacks. EAs are mostly built on technical analysis, so they tend to be weak against sudden price movements. Rapid market changes due to indicators or statements by key figures can be incompatible.
Also, there are costs to implement EAs. For popular EAs, prices often range around 20,000–30,000 yen, which can be a heavy burden for those with limited funds. Some EAs cost less than 10,000 yen, or are available for free when you open an account, so use them wisely.
