Algorithmic trading saves time for a trader, but sooner or later the question arises: why not implement several trading strategies in the terminal at the same time? After all, manual trading allows the opening of several positions on different assets using various kinds of technical analysis tools. So why not run several Forex trading advisors in the same MT4? For example, in order to hedge risks? The idea is good, but not so simple. Read more about this.
Forex Trading Advisors: learn to combine programs
- The problem of technical compatibility of robots. A trading advisor is a program that runs on the basis of MT4. Imagine that you decided to install two or more anti-virus systems on the computer’s operating system. We are sure that not many anti-virus programs will even want to be installed on one OS. Similarly with advisers. Some of them may work with each other, and some may not. At best, one of Forex trading advisors will not start, at worst, robots will not work correctly, and MT4 will work much slower due to overload.
Solutions to the problem:
- Assigning a unique code to orders. In the settings of each adviser there is a Magic option. This is the assignment to open positions of a unique number, which allows you to separate automatically open transactions of different advisors from each other, including manually opened transactions. For example, when a general order is closed, the adviser, guided by the unique Magic number, will close only its trades. However, there is a problem: not all brokers allow the network to be overloaded by trade advisors who send constant requests to the server. Restriction can be bypassed if not to specify Magic. And here is the dilemma: either to choose a broker that does not set limits, or not to combine robots.
- Install multiple terminals. If there is a technical possibility, then this is a solution to the problem. In order for both platforms to open at the time of installation, they should be placed in different directories (folders), preferably on different virtual disks, at the time of installation.
- The problem of physical compatibility of robots. If, even from the technical side, there are no problems with installing robots on one platform, this does not mean that it can be done. For example, guess what happens if you run 2 robots using Martingale on one account with a maximum drawdown of more than 50%. 50 + 50 = 100%.
Solutions to the problem:
- You cannot simultaneously run Forex trading advisors, which are built on high-risk strategies: Martingale, averaging, pyramiding. And even if the total drawdown of advisors is less than 100% minus the stop-out level, we follow the risk management rule: open transactions should not exceed more than 15% of the deposit.
- It is best to combine advisors working with different timeframes and tactics different from a temporal point of view. For example, scalping and intraday strategies.
- It is impossible to combine advisors that open frequent positions and send frequent requests. The load on the platform can reduce the speed of opening and closing positions.
Assess the compatibility of Forex trading advisors can be on a demo account, although it does not fully reflect the market situation. There are questions – ask from in the comments after the article!