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Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
Expert Advisor Technology Ver2
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Expert Advisor Technology Ver2

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  • Nice for posting this, but if you need more information about Forex Trading Robots. You can check here:
    http://forexrobotreviewz.com/
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  • Nice for posting this, but if you need more information about Forex Robot. You can find here:
    http://forexrobotreviewz.com/
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  • 1. Expert Advisor Technology Progress in the field of Investment IT By Alex Siew
  • 2. What this session is about : <ul><li>Its about how EA can help us in real life. </li></ul><ul><li>Its about how young Malaysian IT grads and programmers can venture into this field and find good career prospects. </li></ul><ul><li>Its about a very raw, untapped area of IT field of which young business entrepreneurs can venture into. </li></ul>
  • 3. Session Content <ul><li>(1) Progress of US Stocks Exchange System </li></ul><ul><li>(2) Current World’s top EAs performance </li></ul><ul><li>(3) Breakdown of EA’s components </li></ul><ul><li>(4) EA’s prospects for everyone </li></ul><ul><li>(5) Research findings </li></ul>
  • 4. A long long time ago … <ul><li>In 1970s, Hand signals were used in stock market trading. </li></ul><ul><li>This is called the open outcry system. </li></ul>
  • 5. Not so long time ago .. <ul><li>CME Globex trading system was introduced in 1992 as the first global electronic trading platform for futures contracts (1 type of stock market products). This fully electronic trading system allows market participants to trade from booths at the exchange or while sitting in a home or office thousands of miles away. </li></ul><ul><li>(Source : http://en.wikipedia.org/wiki/Globex ) </li></ul><ul><li>What it means is you can now trade US stock market at the nearest Starbuck with Wifi or at home in Malaysia. </li></ul>
  • 6. Some info about Globex <ul><li>When Globex was first launched, it used Reuters&apos; technology and network. September 1998 saw the launch of the second generation of Globex using a modified version of the NSC trading system, developed by Paris Bourse for the MATIF (now Euronext ). </li></ul><ul><li>To connect to Globex, traders connect via Market Data Protocol (MDP) and iLink 2.0 for order routing. </li></ul><ul><li>(Source : http://en.wikipedia.org/wiki/Globex ) </li></ul>
  • 7. Just some years back … <ul><li>After traders can trade online, they want the PC to trade for them. </li></ul><ul><li>A few exchange brokers provide auto trading features in their trading platform. </li></ul><ul><li>MT4 is a popular EA platform for forex, Tradestation is a popular EA platform for futures, stocks and options. </li></ul>
  • 8. What is an Expert Advisor? <ul><li>EA (Expert Advisor) — an automated script which is used by the trading platform software to manage positions and orders automatically without (or with little) manual control </li></ul><ul><li>(source : http://iproforex.blogspot.com/2008/03/forex-glossary.html) </li></ul>
  • 9. www.futurestruth.com – World’s top ranking futures systems
  • 10. How EA works (its not magic you know..) <ul><li>Easiest way to build an EA is to write a small piece of coding in an existing broker’s trading platform with EA features. </li></ul><ul><li>Eg. Tradestation is a trading platform that supports EA. All you need is to code an EA in a language that Tradestation understands, and TS will run the EA for you. The programming language it understands is EASYLANGUAGE. </li></ul>
  • 11. Easylanguage intro <ul><li>Easylanguage uses structured programming. </li></ul><ul><li>You need to define variables, inputs, functions, and trade management codings. </li></ul><ul><li>Code your strategies into easylanguage format, then compile it in TS. </li></ul><ul><li>If there’s no errors, TS will tell you that your EA is ready to run. </li></ul>
  • 12. Major components of EA coding <ul><li>(1) Input </li></ul><ul><li>(2) Variables </li></ul><ul><li>(3) Trading time definition </li></ul><ul><li>(4) Main strategies </li></ul><ul><li>(5) Trade management rules </li></ul>
  • 13. Advantages of EA <ul><li>Backtesting of strategies. Can test out the potential outcome before placing real money. Save your ass before you get burned by the cruel market! </li></ul><ul><li>Forward testing – can run live in demo or real a/c, and see if ur strategies work in real trading environment. Brings confidence before betting with real money. </li></ul><ul><li>Autotrading – can trade for you when you are not around to watch the market. Save time and efforts. </li></ul>
  • 14. A note for young programmers <ul><li>Presence of Malaysian EA developers in the field of US futures market is almost non-existence. </li></ul><ul><li>It is a potentially lucrative field, as a good EA can be sold for millions of dollars to banks and financial institutions to manage their big funds. </li></ul><ul><li>EA languages for MT4 and TS are quite easy to pick up. </li></ul><ul><li>Easylanguage programmers for example are paid about $1000-$10,000 to code 1 simple EA system for clients. </li></ul><ul><li>Can pick up some free &amp; good trading strategies along the way. </li></ul>
  • 15. A note for investors <ul><li>Tested and proven EA (read:those ranked in top 10) systems are worth investing in. </li></ul><ul><li>They generate much better returns than any mutual funds or bonds. </li></ul><ul><li>There’s always risks in trading, and past results is no guarantee of future performance. </li></ul><ul><li>It is an area worth consideration for allocation of risk capital (10-20% of investment fund) </li></ul>
  • 16. Conclusion <ul><li>Fully automated trading system has become a reality in our time. </li></ul><ul><li>Current performance is impressive, but much can still be improved upon. </li></ul><ul><li>Expert Advisor System developer is a well paid career option for IT grads. </li></ul>

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