Download MetaTrader 5

New article: How to Develop a Profitable Trading Strategy

To add comments, please log in or register
MetaQuotes Software Corp.
MetaQuotes Software Corp.  

New article How to Develop a Profitable Trading Strategy has been published on

This article provides an answer to the question: "Is it possible to formulate an automated trading strategy based on history data with neural networks?".

The process of developing successful trading strategies with implementation of technical analysis can be divided into several stages:

  1. Attach several technical indicators to a chart window of a financial instrument's price, and identify patterns of market correlations and signal indicators.
  2. Formulate data obtained from the previous correlation step.
  3. Convert strategy to a relevant programming language to create a mechanical trading system.
  4. Run the trading system through a simulator based on history data and try to match its input parameters (optimize).
  5. If the previous step hasn't increased the balance, proceed to step 1.
  6. Run the system obtained through the previous stages on demo accounts for testing.
  7. If the previous step hasn't brought any profit from virtual money, proceed to step 1.
  8. Use the system in real-life trading, occasionally adjusting its input parameters to the changing market conditions.
That's it, really. The system created this way can be used in automated trading, as well as an advisor in manual trading in order to suggest the most important signals sent by technical indicators.
Let's see what happens, if we try to computerize the whole process.

This article analyzes the use of a simple single-layer neural network for identifying the future price movements based on the readings of the Acceleration/Deceleration (AC) Oscillator.

Author: Yury Reshetov

To add comments, please log in or register