forex software

Create and Test Forex Strategies

forex software

eas-guide:strategy

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Strategy

A trading strategy consists of rules for opening positions (Entry Rules) and closing positions (Exit Rules). Each strategy you generate or create can be exported as an Expert Advisor for MetaTrader 4 and MetaTrader 5.

EA Studio uses strict trading rules and a predefined structure of the strategies in order to provide a fast and reliable backtest. The backtest corresponds closely to MetaTrader testing and trading results.

The Purpose of a Strategy

  • it contains all of the trading rules for opening and closing positions;
  • it can be tested against real historical data in EA Studio and in MetaTrader;
  • it trades in the same way in MetaTrader as it does when tested in EA Studio;
  • it contains all of the the necessary indicators and does not require any additional files;

Technical Indicators

EA Studio uses a set of technical indicators to create trading strategies. Most of the indicators are standard and widely used. There are a few indicators that are specially build for EA Studio to allow building even more diverse strategies.

EA Studio uses the MQL code for the indicators and will support MQL (MetaQuotes Language) versions of the indicators for exporting Expert Advisors. The indicators in EA Studio work in the same way and use the same signals as their equivalent MetaTrader indicators. We always expect to achieve exactly the same signals in MetaTrader as in EA Studio.

Backtesting a Strategy

EA Studio includes a complex algorithm for testing a strategy against historical data.

How it works

EA Studio loads data files, calculates the strategy indicators, trades the strategy bar by bar, from the beginning to the end of the data, and calculates the trading results in the same way as if the strategy was traded by a trader in MetaTrader. When the backtesting is complete, you get the full statistical data from the virtual trading.

When you create a strategy manually with the Editor, you have full control over the indicators, the logical rules and the indicator parameters. On the other hand, when you use the Generator, the program sets all these rules and parameters for you.

Finally, when you export an Expert Advisor and place it on your chart in your MetaTrader terminal, it contains the same indicators and same trading rules as the strategy in EA Studio. This guarantees very similar results on real trading and a backtest with the same data.