Category Forex Info

Why you need a VPS for automated Forex trading

VPS is a virtual private server which is basically a virtual computer that’s always on.  If you use automated MT5 Forex expert advisors we highly recommend using a VPS. MQL5 has a VPS service built into MT5 terminals and we highly recommend using it. If you haven’t ever used a MetaVPS (VPS built into terminal) it can be confusing to start so we want to simplify it for you. 

Why do you need a VPS? The truth is you don’t need a VPS but it is highly recommended. If you trade from a home terminal you will have higher ping than a MetaVPS which means your trades are slightly delayed. Also your home computer might randomly fail or lose internet connection which you definitely don’t want.  To check your ping look on the bottom right of your MT5 terminal and it will be listed. Mine currently is 143.80 ms.

My MetaVPS ping is currently 1.86 ms so you can see the difference. 

The ping helps but we recommend the MetaVPS for their ease of use and because their uptime is 99.99%.  This means your automated Forex robot will always be up and trading regardless of what’s going on with your home computer.

Setting up a MetaVPS is easy and you can do it right from your MT5 Forex trading terminal.  In your MT5 terminal you can look to the bottom right to find a VPS icon. You can also find the VPS button in your ‘Navigator’ window on the left. 

Next click one of the VPS buttons and you will get to the VPS menu.

On the VPS page you have a few options for your VPS. You can do it monthly or up to 6 months at a time. Complete the purchase through your MQL5 account which will take you to the next step of the process.

Next you’ll encounter a screen like the one below. You have the option to start, stop, and migrate. We will choose to migrate but before we do that you want to make sure you have all your charts and expert advisors setup the way you would on your home computer. What happens when you migrate is all your open charts, experts, and settings are pushed to your MetaVPS. Basically it copies the terminal environment to the VPS and it will start operating on the VPS.

Next go ahead and make sure the ‘migrate all’ box is checked and click migrate. After it is completed you will get a green message letting you know that the migration was successful. 

That’s it! You can now close your terminal knowing that your MT5 Forex expert advisors will always be working somewhere in the cloud.

Eventually you’ll want to change settings on your EA or change your EA out completely. To do this all you need to do is make the changes to your terminal and click migrate all. All your open experts, settings, and charts will overwrite the old and you’ll be using your new setup immediately.

How to buy and start using a MT5 Forex trading robot

Have you decided to try Forex trading but aren’t sure how to buy and install your first trading robot? This article will walk you through buying and installing an expert advisor through your MT5 trading terminal.

First make sure you have downloaded and installed the MT5 terminal provided by your broker.  Open your MT5 terminal and navigate to your options through the tools menu. On the server tab you should enter your broker credentials or if you don’t have a broker account you can use a demo account.

Navigate to the expert advisors tab and ensure ‘Allow algorithmic trading’ is checked. If you go to the Community tab you’ll see another set of credential input boxes. These are for MQL5 and if you do not have an account you can create one on this tab. After entering your MQL5 credentials press OK to exit.

On the left side of your terminal in the ‘Navigator’ window you will see a ‘Market’ icon. Go ahead and open that and we’ll see a bunch of different MT5 expert advisors, utilities, libraries, and indicators.

We can buy or rent an expert advisor directly from the product page found in our MT5 terminal. Buying directly from our MT5 terminal makes the whole process fast and easy.  Just a heads up, the first time you buy a program from MQL5 you might need to call your credit card company to approve the purchase.

This is where you need to do your due diligence and research which advisor to buy.  If you need help figuring out how to choose an expert please check out our post  “How to pick a MT5 Forex Expert Advisor”.

Next let’s install the program so we can get trading! Back on the product page you should see a ‘Download’ button. If you don’t see a download button please navigate to ‘My Purchases’ in the navigator window to your left and download there. Once we have downloaded the program we need to install it on a currency pair chart.

It’s critically important to make sure you check the product page to find which currency pair chart and timeframe to open.

To open a chart navigate to the ‘file’ menu and choose your currency pair in the ‘add a new chart’ menu. After your chart opens you’ll need to choose the correct timeframe for your expert advisor. On the upper left of your terminal you should see the different timeframes.  If you don’t see the different timeframes you should  navigate to ‘View’ and highlight the toolbars menu. On the toolbars menu make sure ‘Timeframes’ is checked. Now we just need to install the expert advisor.

In the ‘Navigator’ menu to your left find your expert advisor and drag it onto your chart. Alternatively you can right click the expert and choose ‘Attach to chart’.  Your expert advisor will open and allow you to input your preferred settings

On the ‘Common’ tab make sure you have the ‘Allow Algo Trading’ box checked. Click OK and the expert advisor should have loaded onto the chart. Some expert advisors have a visual display while others don’t. If you look to the top right corner of your chart you’ll see the name of your advisor. If you see the name it means your expert has initialized and is ready to trade. 

To ensure reliable trading we recommend using a VPS. There are many types out there but MetaVPS through your trading terminal makes it easy. We will go over how to install and use a MetaVPS instance in the next post. Have fun!

Intro to Forex Signals

If you think you don’t want to trade Forex on your own there is another easy way to trade Forex without having to trade yourself. Forex signals are created from an account of an active trader. For example: we have multiple Forex trading accounts and each account creates its own signals. People, like yourself, can subscribe to these signals for a small monthly fee. Once subscribed your account mimics the trades of the signal providers account. So when the Forex signal provider (us) makes trades your account makes the same trades. This is an easy way to trade Forex without any Forex trading experience.

Keep in mind that if you do use Forex Expert Advisors to trade you too can sell your trading signals. This is a nice bonus which can create a passive income.

Our current signals:

Currently our signals are listed on MQL5 and available for subscription. We have future plans to allow subscriptions through our site but for now it is easiest to subscribe through MQL5. If you check out MQL5 you can also see our products and their reviews.

When you look at a provider’s signal there are a few key points to look at to determine if the signal is right for you. In our opinion the most important stats to watch for are account drawdown (DD), trade accuracy, profit factor, and trading activity.

fng investments forex trading signals

The account drawdown is how much account equity has been at risk. You can also see how often the equity dips and by how much. A good Forex trading system usually stays below 25% DD.

The trade accuracy pretty much explains itself. It is the percent of trades won/loss. Ideally you want a win percent of 65% and higher.

Profit Factor = (Winning probability x Average profit from a profit-making trade) / (Loss probability x Average loss from a loss-making trade). Profit Factor below 1.0 means that the trading system is loss-making. Profit Factor within 1.0-1.5 means that the trading system is relatively profitable. And the higher the profit factor is the better. 

The last one is trading activity. Some traders might not consider this super important but we disagree. Trading activity is the amount of time you have open trades. If you have a trading activity of 99% that means 99% of the time you have open trades. When you have trades open all the time there is a higher chance of losing trades. The reason there is a higher chance of losing trades is because of economic news or world events that might occur during a trades. During world events or economic news the trading can be extremely volatile. We try to keep our trading activity below 60% but keep in mind our Expert Advisors also have a news filter to help offset that risk. 

In the next post we will teach you how to subscribe and setup your signals.

Intro to Automated Forex Trading

First let’s start with a basic explanation about what it means to trade Forex or “FX”.  Currency values fluctuate similar to the stock market, they go up and down.  When you “trade” Forex you’re either buying or selling a currency pair, or symbol, like EURUSD. For example: if you buy EURUSD you are buying the Euro expecting it’s value to rise against the US dollar (USD). If the value of the Euro does increase over the Dollar you sell your Euro and make a profit. If you were to sell EURUSD you are expecting the value of the Euro to decrease of the US Dollar.

There are a few ways to trade Forex. You can manually trade Forex or you can use software that automates the Forex trading process which are called Expert Advisors (EA’s). Our preferred and recommended way to trade FX is by using Expert Advisors. There are many reasons we prefer Forex trading using automated Forex EA’s but the biggest is that it cuts the emotions out of trading. When I first started trading Forex I would stay up late trying to catch the big win. I was trading with my emotions, trying to hit it big, and that’s why we prefer and recommend Forex Expert Advisors. Forex Expert Advisors place trades  based on complex algorithms, and since we all know machines don’t have any emotions..yet, your trades are opened and closed efficiently.

To use Expert Advisors you will need a Forex broker account, the EA, the MT5 terminal (the software that allows you to buy or sell Forex), and ideally a VPS to run your MT5 software on. That’s all we are getting into for today but we will continue soon!