Marketiva Forex Trading

Regulatory Information

Marketiva Corporation is a financial service provider incorporated as an international business corporation in British Virgin Islands with registration number IBC CAP. 291 Reg. № 646819. Marketiva Corporation is under jurisdiction of the Financial Services Commission (FSC) and conforms with its regulations and internationally accepted supervisory and regulatory standards.
Adjusted Net Capital of Marketiva Corporation significantly exceeds Adjusted Net Capital requirements for both Forex Dealer Members (FDMs) and Futures Commission Merchants (FCMs) imposed by Commodity Futures Trading Commission (CFTC) through National Futures Association (NFA), a regulatory agency for the derivatives markets in the United States. Marketiva Corporation is not under jurisdiction of CFTC or NFA and is not a member of these regulatory agencies.

A lot of benefit you can get in MARKETIVA
Marketiva's mission is to harness the power of the internet and provide forex traders with exceptionally effective trading tools and outstanding customer support. Forex traders using Marketiva enjoy the most advanced online retail foreign exchange trading front-end in the world, the Streamster™ software, renowned for its ease of use, flexibility and reliability.

Company Addres :
Marketiva Corporation
Green Dragon House, 64-70 High Street
Croydon CR0 9XN
United Kingdom
Registered Office
Main Street, Jipfa Building, 3rd Floor
Road Town, Tortola
British Virgin Islands

Providing Opportunity Around the World
Our mission (Marketiva) is to provide opportunity for individuals around the world to trade on financial markets under equal conditions like traders operating in traditionally closed financial centers and institutions.
In order to help individual traders make independent and knowledgeable trading decisions, Marketiva provides several types of service completely free of charge: an advanced charting system, daily research reports, market event alerts, expert discussion forums and several other free value added services. Marketiva also offers virtual trading desks within each customer account to make it easy for traders to experiment with strategies, improve their trading skills and get acquainted with the system before buying and selling on a live trading desk.

A lot of benefit you can get in MARKETIVA
- No Commissions
- Zero Overnight Interest
- No Minimum Initial Deposit Required
- Flexible Contract Size
- Tight Spreads
- Hedging Capability
- Low Margin Requirement
- Free Trading Signals
- Free Currency News & Chart
- Bonus Sign Up $ 5
- Superior System
- Realtime Account Management
- User Friendly (easy to use)
- Live Support 24 Hours

How much capital that I need to start online forex trading this?

Unlike the company's financial generally requires a minimum of U.S. $ 2,500 for regular accounts and the opening of U.S. $ 250 for mini accounts, in the market, you only need the money as much as $ 1US to be able to start online forex trading, commission free, free exchange, There is no overnight interest rate (overnight interest 0%), low spreads (3 south of Brisbane proper), the latest news, alerts and trading signal for free, live chat support 24 hours nonstop, and you even get the capital 5US $ free when you register the first time. In other words, to start online forex trading in the market is FREE!

How do transactions?

There are 4 methods of transaction that can be used in the market, which is using Libertyreserve, e-bullion , e-dinnar or international wire transfer. Libertyreserve ,e-dinnar or e-bullion are world wide money (e-currency). Libertyreserve, e-dinnar. e-bullion using the exchange rate of other noble metals are converted to the value of the currency value of U.S. $ or other currency. After having the account in the Libertyreserve, then you must have an account on the website of exchanger (money changer), which allows for the exchange e-gold to your currency and vice versa to or from your bank account

How do with security?

Threatening to apply rules 1 account per person, if the system detects the presence of 2 market account that different, but owned by the same person, then the market has the right to cancel one or both of these accounts. If there are family members, relatives or friends you want to join by using the same computer, they can create a new account, uploading a photo ID & confirmation address and a personal staff to support us (on the menu for live chat support software news ™). Marketiva is committed to assist the government in the fight against all forms of money laundering (laundring money) and all business crime through the internet (cyber Crime) other. All new accounts must register & ID photo and address to get confirmation that the legal documents submitted before you can begin online trading.

If you still want to try, can open a demo account first?

Platform market offers 2 kinds of options desk on 1 account, the Virtual Forex and Forex Live. At the time of sign-up, you get U.S. $ 10,000 virtual cash and U.S. $ 5 real money. So with only create 1 account, you can learn (try-try) trading prior to use a virtual currency on the desk Virtual Forex.

When and where can make trades?

Because online, then you can log in to your account at any time and threatening trade from any place around the world who have access to the Internet. Time begins trading on Monday 04.00AM to Saturday 04.00AM (GMT +7) - You can make trades during the period for 24 hours nonstop.

The currency traded what?

Currently there are 12 kinds of currency pairs traded, namely: EUR / USD, EUR / JPY, GBP / USD, USD / CHF, GBP / CAD, AUD / USD, NZD / USD, EUR / JPY, EUR / GBP, EUR / CHF, GBP / JPY, EUR / CAD.. There is a possibility in the future, this amount may increase.

How to Begin Trading in the Forex market?

Here are the steps - the start of trading:

1. Open a Marketiva account (Live / Demo) (Free) or click below :

2. Download a Streamster software
Install the software on your computer

3. Sign-in with a username and password of your account

4. Upload Photo Id & Address- Remember do not make trades before your ID is confirmed!

To avoid the practice of money laundring action and other crimes, immediately do upload photos and addresses of identification (ID / SIM / Passport) after registering an account through Streamster ™ software or website threatening.. Figure (image) in the JPEG format or at least greyscale color (black and white are not accepted) with a maximum size of each 100Kb per picture. You can use 1 type of document (ID / SIM / Passport) only for 2 functions at once, but the second field image should fill in all-time uploading.

After the picture (photo) in the identification verified, you can do online trading through news ™ client software market. If you are still forced to make trades before the ID photo and your address on your account verified then you will be canceled!

5. Confirm your identification- After this you can start trading (if you already have an account and libertyreserve exchanger, and do not want to deposit additional capital)

6. Create an account Liberty Reserve to process transactions

7. Deposit when you need to add capital to trading (see how the transaction)

8. You Start Trading

After the market entry in the account, you can order trading. There are 2 kinds desk is available, namely the Virtual Forex and Forex Live. In the Virtual Forex, you are given a virtual money (virtual) of U.S. $ 10,000 - Virtual Forex is useful to practice the skill of trading if you still want to try, try. In the Live Forex, you are given real money (real) FREE of $ 5US as the initial capital that can be melted and become fully owned by you if you do get the Live Forex and profit, but if you experience loss (loss) to cash out $ 5US then you also will not be any loss. To be able to keep trading, you can add capital (deposit) to the account of threatening you at least $ 1US, it is not easy and cheap?

. You can do live in the Forex market during the 24-hour non-stop from Monday to Saturday 04.00AM to 04.00AM time or WIB GMT +7.

Below the display is the client software Streamster ™

: The main objective in forex trading is the benefit (profit) from the difference between open and closed position, which can be achieved with 2 ways, namely:

»Buy low price in advance and then sell at prices higher. (LONG position, and when it will up graph PROFIT)

»Sell first on the high price and Buy at lower prices (SHORT position, and when it will be down a graph PROFIT)

Display menu Order pages:

On the menu Order pages you can choose: Instruments currency, price, quantity, options desk, buy / sell, the value of exit Stop-Loss and Exit value target.

Leverage (power bob), which is used is 1:100 (1% insurance requirements) means if you want to trade with the quantity 200, you must have at least $ 2 in your account. For while we will lock (as a guarantee should not be here because of the debt) $ 2 you until you close your position. So if you have $ 5 on the Live Forex desk, so you can easily trading on the quantity 200. To be able to trade on a larger quantity so you need to increase the capital in your account.

Please note the position inviting to close the margin with a value of the account at your desk Live Forex. For example If you have a $ 200 trade in the maximum quantity available is 20,000 and you have 6 position in the order quantity 3000, which means that the margin is 18,000 -> $ 180 will be locked and only $ 20 available for the movement of the market. At the margin to the value of 20,000 then one of your open positions will be closed.. As a suggestion use quantity 10x maximum size of the amount of your account per transaction.

Example: your account balance $ 200 -> quantity maximum size is 2,000 per transaction. You can make 3 to 5 position on the quatity safe. (margins are still 10,000 for 5 position on the quantity 2,000 or 10 positions for quantity 1000).

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Forex Daily Outlook

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E-Toro Forex Trading

Get easy tutorial and tips for free
Get $500 up to $1200 Bonus

1. Get up $500 Bonus with eToro
• Join & try demo trading for free to practice (trading for fun)
• Open Real trading & Start make Big money
• Get free bonus up to $500 for first deposit
• You can start Real Trading with $50 only
• You can use leverage 100, 200 and 400
• Big trading contest monthly ( $10,000 Cash Prize)


Open eToro Account for free:
• Download eToro trading software for free
• Install eToro software to Your computer
• Load software and create account with eToro
• You can create free "Trade for Fun" account to practice
• You can create "Trade for Real" account for live trading
• Start open free account with eToro : CLICK HERE



How to trade with eToro:
• Click eToro logo to load eToro Trading Software
• Click at 'Trade for Fun" to start and try Demo Trading for fun, You must try demo first until you can trade with eToron and make profit
• Click at "Trade for Real" to start live trading with real money

Easy tips to place order with eToro
• You can use meta trader 4 to generate signal/chart,
• load meta trader 4 & eToro software in same time
• Look at meta trader 4 to see when to "Buy" or "Sell"
• Order Buy at eToro if meta trader 4 showing buy signal & Sell if meta trader showing Sell signal
• Use leverage 200 for fast moving market or 400 for Slow moving market
Example for GBP/USD Pair : Place Buy GBP/USD and Sell GBP/USD with same Amount and Leverage like 200
• Place order buy GBP/USD : Select GBP at Buy , Select USD at against , Select leverage like: 200, Select amount like: 50 or else than click "open trade" . For more detail to place order with image: click Here
• Place order Sell GBP/USD : Select USD at Buy , Select GBP at against , Select leverage like: 200, Select amount like: 50 or else than click "open trade" . For more detail to place order with image: click Here
• Sample if you have Buy GU & Sell GU with lev: 200 and 50: click Here
Notes:
• eToro will automatic close positions if loss 100% from your order
• If you use leverage 400 , Your order will closed if loss around -25 pips
• If you use leverage 200, Your order will close if loss around -50 pips
• This is like "Stop loss" at Meta trader 4

Start Real Trading & Get up $500 Bonus

After you can make profit with demo trading,
You can start "trade for real" and start make real money
• Just Open Real trading account from your eToro software
• Login to your eToro Real trading account to start real trading
• Make deposit to your live trading account. Minimum deposit is $50 only
• Get 50% bonus for your first deposit up to $200.
• example: you deposit $50 will get more $25 Bonus
• Minimum order is $25 per order.
• eToro Accept: Paypal, Credit card, Western Union & Wire transfer to deposit
• Start trade for real and make real money
• Collect profit as much as you can and win total prize $10.000 every month

Recommend to start Live trade:
• Deposit with low fund first ex: $100
• Start order with $50 for leverage 1:200
• Try short trading with take profit +5 - +10 pips
• Control your emotion and entry order for good position only
• Start make Real Money with eToro


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Liberty Reserve

Since the moment it became clear that e-gold is no longer a leader and that it will never be the same again the Internet community started seeking for the processor that can replace e-gold. The search didn’t last long and some people say that today LibertyReserve is a really good payment processor but for some “butS” and “howeverS”…
Launched in 2002 slowly but surely this processor started climbing the tops of the e-payment markets. If we look at the graph on alexa.com we will see that the peak of popularity of LR concurs with the time when it was announced about the bankruptcy of e-gold, and later about the court where the owners of e-gold pleaded guilty in illegal money transactions. Also one cannot fail to notice that as the popularity of e-gold decreases, the popularity of libertyreserve, on the contrary, increases.


Today Liberty Reserve is one of the most demanded payment processor. It is accepted everywhere and by everyone, especially by hyips which have a lot to do with any payment system. One may say: it is a success! However…

If we look through the discussions on forums we will see that not everything works smoothly. The users constantly complain that they fail to use LR for some reason and ask for help, suggestions and just for the confirmation or sympathy.


For an account opening:
free For an internal transaction:
send - free (optional privacy fee - $0.75), receive - 1% (maximum $0.4) For money insertion:
see http://www.libertyreserve.com/en/exchangers/

For money withdrawal: see http://www.libertyreserve.com/en/exchangers/ for details

Description:
Liberty Reserve is a 100% irrevocable payment system and digital currency. The popularity of this system allows saying that this payment system is a world payment system despite the place of its registration. Liberty Reserve provides a great variety of different services that multiply all the features of Liberty Reserve twice. Get paid, stay paid are irrevocable payments that are even better than credit cards. Also it is possible to send payments to many users at once using the batch pay option. Pay your bills is a service that allows paying of bills online. Liberty Reserve is fully backed by U.S. dollars for LR-USD accounts, and by gold for LR-gold accounts, etc. All services of Liberty Reserve differ with speed, responsiveness and with its dedication to serving of all electronic currency needs. Liberty Reserve allows making payments by e-mail, internally, privately, and to convert Liberty Reserve currency to any other currency through Liberty Reserve directory of independent exchange providers. All transactions are fraud free and are made with minimum service fees. Free accounts. Internal transfer costs are a maximum 25 cents. Other peculiarities can be found on www.libertyreserve.com.

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PAYPAL

PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. PayPal serves as an electronic alternative to traditional paper methods such as cheques and money orders.
PayPal is a type of person-to-person payment service (P2P). A P2P payment service allows anyone with an e-mail address to transfer funds electronically to someone else with an e-mail address. The initiator of an electronic funds transfer via PayPal must first register with and fund their PayPal account. A PayPal account can be funded with a check or money order, an electronic debit from a bank account or by a credit card. The recipient of a PayPal transfer can either request a check from PayPal, establish their own PayPal deposit account or request a transfer to their bank account. PayPal is an example of a payment intermediary service that facilitates worldwide e-commerce.


PayPal performs payment processing for online vendors, auction sites, and other commercial users, for which it charges a fee. It sometimes also charges a transaction fee for receiving money (a percentage of the amount sent plus an additional fixed amount). The fees charged depend on the currency used, the payment option used, the country of the sender, the country of the recipient, the amount sent and the recipient's account type. [1] On October 3, 2002, PayPal became a wholly owned subsidiary of eBay.[2] Its corporate headquarters are in San Jose, California, United States at eBay's North First Street satellite office campus. The company also has significant operations in Omaha, Nebraska, Scottsdale, Arizona; and Austin, Texas in the U.S.; India; Dublin, Ireland; and Berlin, Germany, and now also in Tel-Aviv, Israel after PayPal acquired an Israeli startup called FraudSciences [1] for $169 million.[3] As of July 2007, across Europe, PayPal also operates as a Luxembourg-based bank.

Business today
Currently, PayPal operates in 190 markets, and it manages over 164 million accounts. PayPal allows customers to send, receive, and hold funds in 18 currencies worldwide. These currencies are the Australian dollar, Canadian dollar, Chinese renminbi yuan (only available for some Chinese accounts, see below), Euro, Pound sterling, Japanese yen, Czech Koruna, Danish krone, Hong Kong dollar, Hungarian forint, Israeli new sheqel, Mexican pesos, New Zealand dollar, Norwegian krone, Polish zloty, Singapore dollar, Swedish krona, Swiss franc and U.S. dollar. PayPal operates locally in 13 countries.
Residents in 190 markets can use PayPal in their local markets to send money online. These new markets include Peru, Indonesia, the Philippines, Croatia, Fiji, Vietnam and Jordan. A complete list can be viewed at PayPal's website.
In China PayPal offers two kinds of accounts:
• PayPal.com accounts, for sending and receiving money to/from other PayPal.com accounts. All non-Chinese accounts are PayPal.com accounts, so these accounts may be used to send money internationally.
• PayPal.cn accounts, for sending and receiving money to and from other PayPal.cn accounts.
It is impossible to send money between PayPal.cn accounts and PayPal.com accounts, so PayPal.cn accounts are effectively unable to make international payments. For PayPal.cn, the only supported currency is the renminbi.
Although PayPal's corporate headquarters are located in San Jose, PayPal’s operations center is located near Omaha, Nebraska, where the company employs more than 2,000 people as of 2007.[13] PayPal’s international headquarters is located in Dublin, Ireland. The company also recently opened a technology center in Scottsdale, Arizona.

Bank status
In the United States, PayPal is licensed as a money transmitter on a state-by-state basis.[15] PayPal is not classified as a bank in the United States, though the company is subject to some of the rules and regulations governing the financial industry including Regulation E consumer protections and the USA PATRIOT Act.[16] On May 15, 2007, PayPal announced that it would move its European operations from the UK to Luxembourg, commencing July 2, 2007 as PayPal (Europe) S.à r.l. & Cie, S.C.A.[17] This would be as a Luxembourg entity regulated as a bank by the Commission de Surveillance du Secteur Financier (CSSF), the Luxembourg equivalent of the FSA.[18] PayPal Luxembourg will then provide the PayPal service throughout the European Union (EU).

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100% Hedging Strategies

Hedging is defined as holding two or more positions at the same time, where the purpose is to offset the losses in the first position by the gains received from the other position.


Usual hedging is to open a position for a currency A, then opening a reverse for this position on the same currency A. This type of hedging protects the trader from getting a margin call, as the second position will gain if the first loses, and vice versa.

However, traders developed more hedging techniques in order to try to benefit form hedging and make profits instead of just to offset losses.

In this page, we will discuss, some of the hedging techniques.

1. 100% Hedging.

This technique is the safest ever, and the most profitable of all hedging techniques while keeping minimal risks. This technique uses the arbitrage of interest rates (roll over rates) between brokers. In this type of hedging you will need to use two brokers. One broker which pays or charges interest at end of day, and the other should not charge or pay interest. However, in such cases the trader should try to maximize your profits, or in other words to benefit the utmost of this type of hedging.

The main idea about this type of hedging is to open a position of currency X at a broker which will pay you a high interest for every night the position is carried, and to open a reverse of that position for the same currency X with the broker that does not charge interest for carrying the trade. This way you will gain the interest or rollover that is credited to your account.

However there are many factors that you should take into consideration.

a. The currency to use. The best pair to use is the GBPJPY, because at the time of writing this article, the interest credited to your account will be 24 usd for every 1 regular long lot you have. However you should check with your broker because each broker credits a different amount. The range can be from $10 to $26.

b. The interest free broker. This is the hardest part. Before you open your account with such a broker, you should check the following: i. Does the broker allow opening the position for an unlimited time? ii. Does the broker charge commissions?

Some brokers charge $5 flat every night for each lot held, this is a good thing, although it seems not. Because, when the broker charges you money for keeping your position, the your broker will likely let you hold your position indefinitely.

c. Equity of your account. Hedging requires lots of money. For example, if you want to use the GBPJPY, you will need 20,000USD in each account. This is very necessary because the max monthly range for GBPJPY in the last few years was 2000 pips. You do not want one of your accounts to get a margin call. Do not forget that when you open your 2 positions at the 2 brokers, you will pay the spread, which is around 16 pips together. If you are using 1 regular lot, then this is around 145 usd. So you will enter the trades, losing 145 usd. So you will need the first 6 days just to cover the spread cost. Thus if you get a margin call again, you will need to close your other position, and then transfer money to your other account, and then re-open the positions. Every time this happens, you will lose 145 usd!

It is very important not to get a margin call. This can be maintained by a large equity, or a fast efficient way to transfer money between brokers.

d. Money management. One of the best ways to manage such an account is to monthly withdraw profits and balancing your positions. This can be done by withdrawing the excess from one account, take out the profits, and depositing the excess into the losing account to balance them. However, this can be costly. You should also check with your broker if he allows withdrawals while your position is still open. One efficient way of doing this is using the brokerage service withdrawals which is provided by third party companies.

by Yannis Karamanakis

http://www.myfxreport.com


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Automated Trading Systems for Financial Markets and Recommendations for Their Usage

1. Introductions

Today, using information and trading platforms has become a de facto requirement for successful trading in the financial markets. Their advantages as compared to conventional trading schemes include, for example, an unprecedented speed of processing and delivery of information to end users, the level of integration with data providers, and a wide array of built-in technical analysis instruments.


At the same time, an investor opening an account with a brokerage firm simply cannot simultaneously manage the real-time analysis and trade in more than 4-6 financial instruments in several markets 24 hours 7 days a week. This brings about the need to employ automatic trading systems in the form of runtime environment with client and server parts and the programs to control these systems (scripts).

2. Comparative Analysis of the Problem Area

Various software components embrace the entire target sector of the market-from analytics and forecasting to complex trade and administration. The components of a trading platform provide its clients-brokers, dealers, traders, financial analysts and advisors-just the service they need at the very moment they need it, from immediate round-the-clock access to information of concern by means of mobile devices, to multi-move trading operations in the major client terminal.

The software market offers a great many of information and trading platforms that differ, first of all, in the functionality of the client and server parts, and the list of services provided by the financial company once an account has been opened. However, only a relatively small number of software solutions include the components that automate trading.

2.1. MetaTrader4-based Solutions

One of the world's most widely used trade platform products is apparently MetaTrader4, developed by MetaQuotes Software Corporat?on for Forex market trading. The platform includes an integrated development environment (IDE) MetaEd?tor, intended for writing scripts in a programming language called MetaQuotes Language, or MQL4 for short. The language's syntax is based on the classic C language syntax, and the flow logic has not been significantly changed since the previous version of the platform that used MQL II as the programming language. The new automated trade framework is, undoubtedly, an evolution of the previous one. Both languages feature good functionality, with an optimum set of built-in trading and utility functions which is quite sufficient to implement the basic operations, and a facility to define custom functions to help implement non-standard ideas.

From the programming point of view, MQL4 is much more convenient that its predecessor; this language is more oriented at professional programmers, while MQL II, in my opinion, will rather suit financial experts wishing to build trading programs (or trading advisors, in the MetaQuotes terminology) of their own.

2.2. Omega Research-based Solutions

In the New World, the vast majority of companies use the Omega Research platform developed by TradeStation Securities, Inc. This platform has long ago proven its worth at the worldwide market, and to date experts consider it to be the best system for technical analysis. The provided IDE called Omega Research PowerEditor is intended to create control programs in EasyLanguage (EL).

The language's major advantage that strikes the eye is the easiness (hence is the name) of placing opening and closing orders. The corresponding program instructions can be written such as if we were formulating an order to our broker in the plain human language. In MQL4, for example, placing an order to open a position would involve specifying about a dozen of various parameters. In EasyLanguage, the same can be expressed in a short statement using a few words. Working with technical indicators is about that simple, too. But don't fall under an illusion: when creating these simple commands, language developers sacrificed the functionality and limited the possible ways of using a particular function, therefore effectively depriving the IDE users of the opportunity to accurately implement their own algorithms.

TradeStation decided not to create extensive libraries of built-in trading and utility functions but to limit to only an essential set. As the platform advanced, the number of functions written by both in-house and third-party developers grew, and TradeStation simply included them as user-defined functions into the repository of its scripts. As a result, the functionality offered to users is not in the least scarcer than that of MetaQuotes product.

PowerEditor provides a built-in dictionary that lets user search and get help on the available functions. Another handy tool worth mentioning is the strategy builder. Using the strategy builder, the user can easily create a basic algorithm for his or her trading program, and then modify and adjust it as necessary.

EasyLanguage is an old-timer and pioneer in the field of creating automated trading systems for the stock market. It was the basis for the development of MQL II. EasyLanguage will be a good choice for programmers, but still a better one for financial experts more oriented at analyzing the market than trading.

2.3. ProTrader-based Solutions

Professional financial experts can choose the ProTrader2 or ProTraderFX platform as their working tool, depending on the type of the financial market-stock or Forex, respectively. The two platforms are developed and supported by PFSoft LLC. While featuring the specially developed ProTrader Language (PTL), the provided IDE named PTL Builder offers also the opportunity to create scripts in MQLII, MQL4 and EasyLanguage. For this, the text of the program is translated to a language-independent code. Therefore, at runtime it does not matter in which language the script was written. This technology does not only enable creating new scripts, but makes it possible to use freely the entire accumulated collection of scripts that many experienced traders possess.

The main idea put into the new scripting language was to ensure maximum reliability and predictability of the scripts being run. The PTL language is built so as to minimize the possibility of making a mistake in the text of a user's script-the potentially dangerous points will be detected even before the script is tested or launched.

Regardless of the programming language chosen, the platform works with verified managed code while running the script. This Microsoft-developed technology enables proper handling of errors that cannot be detected before the script is run. This means the program will not fail and will not perform any unwanted operations that might be due to critical errors or damage caused by another program, for which the account holder would eventually have to pay.

The PTL Builder IDE will serve well both financial experts and programmers thanks to its support of different programming languages and provided tools such as tester and debugger.

2.4. Solution Comparison

The above IDEs have their specific feature sets. The table below provides a summary comparison of the capabilities offered by each.

3. Approaches for Creating Automated Trading Systems and Recommendations for Using Them

It hardly needs mentioning that choosing an information and trading platform should be taken with all seriousness. For those who plan to use an automated trading system in their business, below are some points I would recommend considering, based on my personal experience.

3.1. Choosing a Working Environment

First of all, define the type of tasks the automated trading system is to perform. These could be:

Actual trading: opening and closing positions in selected instrument(s).

Secondary support-type functions. These could include placing protective orders, creating and sending out reports of notifications.

Analyzing the market with different technical analysis tools using your own algorithm.

Now, after you have studied user comments on the Internet and perhaps consulted your broker, proceed to getting the feel of the products offered. I strongly encourage you not to just have a cursory look, but to test the system for a day of two, thankfully, most of the large companies will let you sign up for a demo account for testing. Pay attention to both the convenience of the IDE and the tools that go with it, and to reliability and security of the control programs created with the IDE.

3.2. Creating a Control Program

If you are planning to create your own scripts, take the time to study the documentation for the programming language and the IDE. Naturally, for an automated trading system to be expertly organized, the scripts should be written by qualified professionals in the field of programming and finance. In case you wish to use one of the classic programs, remember that most of them are of trial, demonstration nature. They are good for testing the automated trading system or to be used as a basis for your own programs, but as self-sustaining, ready-to-use solutions they are of little avail.

If you decide to use programs written by third-party developers, keep in mind that good solutions will have to be paid for. The cost of one innovative strategy varies between $300 and $500, but the price for fine-tuned strategies that use advanced mathematical and economic techniques and especially for winners and runners-up of automated trading championships may exceed $1,000.

3.3. Testing Scripts

When using an automated trading system, always test your scripts. The procedure can be as follows:

1. Test the program in a script tester (if such facility is available in your IDE) several times, varying the chart period, the instrument being traded, and the program settings. Try to model the conditions close to the actual state of the market.

2. Test the script in a demo account (if such an opportunity is available). At this stage, it is important to let the program run for a sufficiently long time (it is defined by the period of the chart). Do not stop the test if the program has at once produced a big gain or a big loss. The usefulness of the script can only be estimated after it has worked for a significant amount of time.

3. Run the script in the live account. At this stage, it is not advisable to interfere with the script-for example, close the positions it has opened or modify their settings-or you can upset the internal logic of the program.

3.4. How Not to Fall Prey to Tricks When Choosing a Script

Remember that there are no absolutely perfect advisers. So, do not let them sell you the Brooklyn Bridge-if you had a system that brings in fabulous profits, would you sell it? There is only one advice-a rigorous comprehensive testing will help you get the right impression about the script offered.

Usually, script vendors describe their products with the results of their own testing. In most cases, however, such results are very slanted. Remember that testing should always be performed on several histories, or you can simply adjust to one history fragment and show sky-high results. Based on the NFL theorem, it is fair to say that it is impossible to create a script that would the best of all those existing, in all instruments.

Some professional programmers use sophisticated mathematical tools to endow their programs with artificial intelligence-neural networks, forecasting and evolutionary algorithms are no longer surprising. I would not recommend overestimating such systems-complex forecasting algorithms are very sensitive to errors and parameter settings, while simple schemes are not of much help to the advisor when it comes to generating trade signals, and can only be used to raise the price of the script.

4. Conclusion

In this article, I neither discuss any programming rules for creating the advisors, nor the specifics of writing scripts in a particular language. On these subjects, there are whole books written as well as a number of articles. My aim was to present several points which I think to be quite important but which have not been sufficiently covered in existing publications.

So, are automated trading systems your ally or enemy? When used carefully and without hasty judgments, an automated trading system can facilitate the financial expert's work and bring in certain profits. But when used incorrectly, incompletely tested, or having settings changed frequently, the automated trading system can lose the money you entrust to it.

Remember that an automated trading system is not going to do your job for you without any effort on your part. Use it to solve your existing problems and not add new ones.

5. References

1. MetaQuotes — developer of MetaTrader, MQL2 and MQL4

2. TradeStation — developers of TradeStation and EasyLanguage

3. PFSoft — developers of ProTraderFX, ProTrader2 and ProTraderLanguage

by Nikita Laukhin

Automated Trading and Scripts Analyst of PFSoft Company.
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