Current Market View - Updated November 2021
SmartForexExpert has been developing automated Expert Advisors for Metatrader since 2014.
On this site you can find the performance of the different systems developed by SFE recommended at this time.
After a long period where the big force of movements in the currency market was the common behavior, since 2018 the market has changed strongly, and now momentum movements are very few and weak, with large pullbacks, and stationarity of the prices is the main feature, that is why while a few years ago the 'momentum' 'impulse' 'price action' was the profile, now the focus should be on systems that take advantage of the current market, through systems that seeks more for reversal points than signs of momentum.
There are some exceptions to this if a certain symbol has great price action, for example Bitcoin at the moment, Gold in recent years, but in general, it is dangerous to use momentum systems at the moment.
For this reason, the EAs recommended at this time are primarily reversal systems. On this site we present the performance of different reversal systems. There is also a trend system that focuses on taking advantage of impulses but avoiding the initial pullback. A stock market system that is a great option for diversifying risk. And on the side of the commented impulse systems, the bitcoin EA is interesting for the big crypto movements at the moment and it seems that it will stay in the future. Gold is also interesting but last year it was in a phase of price consolidation, so the systems have lost their effectiveness for the moment.
How to get started with algorithmic trading? (the expert advisors)
Although there are other approaches, the common is to have a VPS (virtual private server) in the cloud with an MT4 / MT5 instance running all day, and in this instance, you can attach the different EAs that you own.
The MQL5 market offers a large number of EAs and generally there is the option to buy a lifetime license or rent for a specified period.
Instead of directly owning and using EAs, you can also follow a "signal". If you follow a "signal", the trades of the signal account will be replicated on your account, with the selected ratio.
In the case of SmartForexExpert, the different EAs have their own signal in the mql5 market, with the main objective of showing the performance live.
Generally, you will go the copy signal route if, either you don't have enough balance to make sense to spend the amount that it cost the EAs, or you have enough balance, but you don't want to manage yourself and prefer another trader manage that.
At SmartForexExpert right now, you can copy the different signals in mql5 or copy Jimmy's accounts, who is a well-known trader in our SFE community. Jimmy has helped me in a number of things, including managing some signals that different EA SFE uses and offering interested traders the copy service. You can find the link to the copy services for these accounts on his page in the menu on the left. ‘Portfolio ICMarkets’ ‘Portfolio FusionMarkets’.
If your choice is to buy or rent the EAs and manage it yourself, on the different EA pages you can find the link to the mql5 page where the EA can be purchased. The links are for the MT5 versions, but you can also find the MT4 version on my seller portal.
Do not forget to join our telegram group for any questions, request for more information or share some experience about automatic trading.
How to get started with algorithmic trading? (the broker)
The first step is to have a good broker. In a broker you need: a reliable company behind, good customer service, competitive spreads and commissions.
In the end, the margin to be profitable is narrow, so the decision of the broker is one of the most important to be successful.
The two that I use and recommend the most are Tickmill and ICMarkets. Both are great trustworthy companies with very good conditions and services.
I have used more ICMarkets than Tickmill over the past few years because Tickmill doesn't have MT5 in the past, but they already offer MT5 so it's on my top list again.
Right now and based on the operations that I follow in my accounts, the spread is very similar, very good in both cases, among the best in the industry. But right now Tickmill has an advantage in two respects:
1. The commission is quite less. The commission without affiliate discount is $ 7.0 / lot at ICMarkets and $ 4.0 / lot at Tickmill. With affiliation to a partner that offers the maximum possible discount, such as SmartForexExpert, drops to $ 5.5 / lot at ICMarkets and $ 3.8 / lot at Tickmill, so Tickmill has a much cheaper commission.
A detail is, the commission in Tickmill is not in $ or in equivalent account currency like ICMarkets, it is 0.0038% of the contract amount, so in symbols where the Base is AUD, CAD, NZD, the commission is much less than 3.8 $ / lot. It is true then that with Base as GBP especially it is higher, but if you use the crosses of the main currencies in general, the total commission is better than a fixed one of 3.8 $ / lot, so this adds more advantage.
2. At the moment swaps are also significantly better on Tickmill, one of the best I have seen, so while this is not critical for short-term trading, it starts to be an important factor when trades holds several days. With the current incorporation of the SFE 'Server' systems, where the time horizon is a few days, this cheaper swap is a significant advantage over most current brokers.
If you want to join Tickmill or ICMarkets or if you are an existing client but want to benefit from the affiliate discount, click on the broker icon to see the steps to follow.
Why automate trading?
The market is very challenging and in the case of forex it is a zero-sum market, so to win yourself, other traders must lose. Not only this, every time you open a trade, a direct loss is taken between the spread, commissions and swaps in case the trade is not closed on the same day. This means that unless you are an advanced trader with great knowledge and great psychological strength, you are probably part of the traders that will feed the professionals and large investment firms. They use algorithmic trading because on average it is a more successful path than doing it manually, so by trading with automated algorithms you are trying to be on the winning side of the trader's queue.
Is so easy? No, 99% of Expert Advisors 'trading bots' are junk or scams, so be careful and spend your time finding real sources of good EAs.
The important thing is that using EA to trade does not mean that you do not have to do anything. Having a knowledge of the behavior of the market, to decide in which systems you risk more or less in the current market is under your decision, and this will make the difference between obtaining or not obtaining consistent profits.