Automated Forex Trading Software

The most commonly used automatic trading program is metatrader 4. This software is offered by many currency trading brokerages as their main platform. It is a very user friendly and easy to use trading platform. The platform provides indepth charts, comprehensive technical analysis tools (including, trend lines, fibonacci retracement lines, techincal indicators, candlestick patterns etc) MetaTrader 4 can be downloaded free at http://metaquotes.net

Forex Expert Advisors

Forex Expert advisors are automated scripts designed to run on the Metatrader 4 platform. The script contains a pre-defined FX strategy. The entries and exits for these strategies can be be based on a number of factors such as moving average crossovers, indicator readings, defined support/resistance points being broken etc. If you wish to make a custom metatrader 4 expert advisor, you will need to have some programming knowledge. However, if you don’t, it’s not a problem, but you will have to find a programmer to code it for you.

Automated Forex Trading Systems

Fozzy EA – This is great free expert advisor for the fozzy script. It is an RSI crossover strategy best used on the daily chart. There is a comprehensive ebook on the fozzy strategy avaliable for download here.
Hans 123 – This is an automated day trading system. The full instructions are included in the zip file.

More strategies will be added in the future.

Conclusion

Online Automated Trading has many possibilities, but the truth is there are a very large number of these Expert Advisor scripts available for free download. The reality most of them will be negative at the end of the year. It is a essential to try an automated trading system on a demo account for a considerable amount of time before trying it live. It is also essential to have a reliable internet connection and PC. How annoying would it be if you missed out on a trade because your internet connection died? Most forms of automated forex trading have the scripts on your PC rather than on the server side.

A final tip is to never buy an automated forex trading system. There are many clever marketers out there making unrealistic claims about how good their automated system is. If it was so good, they would be using it to make money, instead of spending their time and efforts on clever marketing!

Source - http://fxtradingguide.com/automated-currency-trading/

Pivot Points Indicator for Metatrader 4

Pivot Points is technical indicator derived by calculating the numerical average of a particular stock's high, low and closing prices.

The pivot point is used as a predictive indicator. If the following day's market price falls below the pivot point, it may be used as a new resistance level. Conversely, if the market price rises above the pivot point, it may act as the new support level.

Formula:
Pivot Level P = (H + L + C) / 3 , Then Resistance 1 R1 = 2P -L ,
Support 1 S1 = 2P - H, Resistance2 R2 = P +(H - L) , S2 = P - (H - L)
R3 = R1 + (H - L ) , S3 = S1 - (H - L)


Show Chart Source Code Download Indicator

Keltner Channel Metatrader Indicator

The Keltner Channel is based on the Average True Range and is sensitive to volatility. It may be used in place of standard deviation (Bollinger) bands or percentage envelopes.

The Keltner Channel is made up of two bands plotted around an Exponential Moving Average (EMA), usually the 20-day EMA.


Prices breaking through the bands often produce buy and sell signals. The indicator was originally developed by Chester Keltner and later modified by Linda Raschke to use an average true range (ATR) calculated over 10 periods.

Indicator Trade Signals

• When prices close above the plus band, it is a signal of strength and rising prices
• When prices close below the negative band, a signal that prices will drop is indicated
• Signals stay in effect until the prices close across the opposite band. This should often be tempered, however, with the use of other indicators to provide better exit opportunities.

Show Chart Source Code Download Indicator

Donchian Channel Indicator for Metatrader

A moving average indicator developed by Richard Donchian. It plots the highest high and lowest low over the last period time intervals.

The Donchian Channel is a simple trend-following breakout system. The signals derived from this system are based on the following basic rules:

1. When price closes above the Donchian Channel, buy long and cover short positions.
2. When price closes below the Donchian Channel, sell short and liquidate long positions.

Show Chart Source Code Download Indicator

Custom Indicator Kaufman's Adaptive Movinge Average for MetaTrader

The adaptive moving average (AMA) that was discussed in the interview with Perry Kaufman in the 1998 STOCKS & COMMODITIES Bonus Issue (the article originally appeared in March 1995) is an excellent alternative to standard moving average calculations.

Show Chart Source Code Download Indicator

Aroon Indicator

The Aroon was developed by Tushar Chande in mid-ninetees. It is a trend indicator - used to determine if the security is moving in a trend or sideways, as well as how strong the trend is.
If the price of a currency is rising, the Close for the period will be closer to the end of the period, and vice versa. The Aroon indicator shows how much time passed between the highest (up) or lowest (down) Close since the beginning of a period (in percents).

Usage

When Aroon(up) and Aroon(down) are moving together, there is no clear trend (the price is moving sideways, or about to move sideways).

When the Aroon(up) is below 50, it is an indication that the uptrend is losing its momentum, while when the Aroon(down) is below 50, it is an indication that the downtrend is losing its momentum.

When the Aroon(up) or Aroon(down) are above 70, it indicate a strong trend in the same direction, while when the value is below 30, it indicates a trend coming in an opposite direction.

Finally, for the Aroon Oscillator, the positive value indicates an upward trend (or coming trend), and the negative value indicates a downward trend. The higher the absolute value of an oscillator, the stronger is an indication of a trend.

Show Chart Source Code Download Indicator

Chaikin Oscillator Indicator

The Chaikin Oscillator is simply the Moving Average Convergence Divergence indicator (MACD) applied to the Accumulation/Distribution Line.

Bullish Signals

There are two bullish signals that can be generated from the Chaikin Oscillator: positive divergences and centerline crossovers. Because the Chaikin Oscillator is an indicator of an indicator, it is prudent to look for confirmation of a positive divergence, by a bullish moving average crossover for example, before counting this as a bullish signal.

Bearish Signals

In direct contrast to the bullish signals, there are two bearish signals that can be generated from the Chaikin Oscillator: a negative divergence and a bearish centerline crossover. Allow a negative divergence to be confirmed by a bearish centerline crossover, before a bearish signal is rendered.

Chaikin Oscillator Chart