Testing Forex System Manual Using Automated Trading System
Forex Expert Advisors are made with a variety of purposes; including to test the reliability of the manual trading system before it is applied.
Black Box in forex is often interpreted by foreign traders as forex trading by using an automated system created with the programming language. If in Indonesia better known as trading algoritmik or more eloquently call it “automatic trading”.
Outside the country, Black Box always experience a significant development. An automated trading system is created with multiple objectives; such as launching new trading strategies, for commercial purposes, as well as for own consumption to test the manual system that has been created. This is different from that in Indonesia, where the development of automatic trading using expert advisor (EA) on average appears with a new strategy or unique system.
The reason some traders use automated trading services is efficiency. It is clear that a better technology is likely to have efficiency in helping humans and usually becomes cheaper than we hire analysts to issue trading signals. In addition, the use of automatic trading is reliable in terms of transaction speed. As you know by yourself, if we are trading manual and want to click buy or sell, it turns out the price is moving first. If using automatic trading, there is no story until it is too late to place the position.
Another advantage of automated trading is being able to test the strategy simulation very easily. This is very different when using manual because there is no manual simulation as effective as EA. Thus, EA simulation trials can be relied upon to convince traders of their own systems.
Therefore, the automated trading system can actually be used to test the manual trading system. This is because automated trading allows for backtesting, or testing, quickly. Backtesting is an attempt to estimate the results of trading based on historical data of price movements in the past. Algorithmic trading system can run this, but if we want to test our own manual system, then we might take a long time. Therefore, some traders change their manual trading system into automatic trading with programming language, then backtesting before applying it in daily trading activity manually or automatically.
Benefits of Manual System Test With Automated Trading System
There are various benefits that can be obtained from manual system test with automatic trading system, including:
- Allows simulation of trading results quickly and easily.
- Eliminate unsatisfactory strategies.
- See how strategies work in different situations.
- Allows us to optimize the system before applying it.
- Automate our manual trading strategy in order to be able to trade automatically with your own strategy.
If you want to trade automatically, then you can use expert advisor (EA) by placing it on a trading account. This is where the expert advisor function actually starts to look. EA that has been placed on the trading account will perform the task in accordance with the trading rules. If you look at the economic side, try to compare how much time will be discarded if mengtrading manually than if we use EA.
Moreover EA will be active 24 hours a day and 5 days a week as long as the computer is not shut down. Means there is a greater chance can be captured by EA than manual labor as done by humans, where a trader needs to rest and out for fresh air.
Now with the translation of this article, you can already understand that the use of EA can actually make the manual system tested for sure. By changing manual trading rules to automated trading form using EA program language, then the trading system can be trusted reliability.