Expert Advisors AutoOptimizer Installation and Using

1. Create new folder AutoOptimization on disc C (or create folder with your own name in your own place)
2. Copy MTester.exe and StartMTester.exe to folder AutoOptimization
3. Add strings to Expert Advisor code:
extern int OptimAuto=1; // 0- switch off 1- switch on auto optimization extern string OptimEveryTime="10.45"; // auto optimization start time (local PC time)
extern string OptimEveryWeek="1,2,3,4,5,6,7"; // day (1 –Monday etc.)
extern string OptimEveryMonth="10,20,30"; // day of month
extern int OptimPeriod=30; // period for optimization, day






4. Add Expert advisor to chart and set OptimAuto=1 and set optimization time according your needs. You must specify the time in 24 hours format. For example 1.30 pm you should set 13:30

5. Run MTester.exe file
6. AutoOptimazer should create folders automatically:
Folders:
HTML_TESTER optimization reports (with data and time)
LOG_TESTER log files for program
RUN_TESTER log files for experts
SET_TESTER *.set files for optimization
Files in these directories are placed in subdirectories under the names MetaTrader 4 terminals.





7. Open strategy tester and create and save .set file with optimization parameters to folder “SET_TESTER” sub folder “your Metatrader name”
File name should be: expert advisor name+'_'+currency+'_'+ timeframe+'.set'


We have tested several expert advisors optimized for period since January 2008 till December 2009 without
AutoOptimizer and with AutoOptimizer with monthly re - optimization. Results of tests with AutoOptimizer  shows significantly more profits with less drawdown.

Learn more about AutoOptimizer forex software

        

BJF Trading Group Inc. has developed a tool, which allows to look through volumes from more than 60 largest global banks and investment funds, such as ABN Amro, Barclays Capital, Bank of America, Merrill Lynch etc. We have received many letters with the request to give more detailed information about use of the given tool in trade. Learn more...

Market Depth Explanation

Many banks offer or bid the liquidity, and Market Depth represents this liquidity.
Market data, available in a Live trading environment, is also known as level 2 market data, the orders book, where the depth of market is needed to trade using trading systems that follow the order flow, such as scalping trading systems and advanced volume based trading systems and includes the following information:


Highest Bid prices: The best 5 prices that traders are willing to accept to sell.
Bid Volumes (in millions USD):  Available at each of the price levels.
Lowest Ask prices: The best 5 prices that traders are willing to accept to buy.
Ask Volumes (in millions USD): Available at each of the lowest ask price levels.


Orders, which are currently present in the market, can be displayed by means of market depth. If there is match of orders, i.e. price of buy and sell orders is the same, these orders are filled. This means you won’t see them in the market depth, because they disappear from it. Such orders are registered in the trade history.

ECN Volumes Tool Explanation

Using fix protocol, we receive real-time data from currenex on our server and then transfer them through dll on metatraders of all our subscribers. 
You can use all basic currencies and timeframes for trading. Information about Bid/Ask pricing is drawn on the chart in the form of graphic objects (arrows). At hovering the mouse cursor over any arrow, you can see numerical value of a quote.

Bid/Ask volumes are displayed on the indicator (million dollars). Yellow line shows Imbalance between the Bids and offers. Imbalance = Bid Volume - Ask Volume



White line shows accumulation of Imbalance. From our point of view, this indicator shows if the market is overbought or oversold.

Overbought/Oversold (i) = Overbought/Oversold (i-1)+VOLUMEBid(i)-VolumeAsk(i)

Scalping strategy with use of MetaTrader ECN Volume Forex Software

Learn more about ECN Forex Volumes Tool

It is very important to find such Imbalance, existing between Bids and offers, which has at least two to one ratio and appears for one-two minutes and more.

If the number of Bids exceeds the number of Offers by at least a two to one margin, you should open short position. The limit of such position should be at least 5 -10 pips, and stop about  30 pips - 100 pips

It would be better to use currency pairs with small spreads, for example, EUR/CHF, EUR/USD etc.

It is quite possible to find two-three good imbalances during one day, maybe more. I mean such imbalances, which will exist more than one minute, and the imbalance will be confirmed by price action. But you can’t fully trust to any method or indicator, so the use of stops and limits is necessary and obligatory. That’s why ten-twenty pips are quite enough for scalping, as you only need to find a “loophole” to start trading.

Learn more about ECN Forex Volumes Tool

If you have any questions, please post your questions on our Forex  Forum

Best regards,
BJF Trading Group inc.

        

1. Divergence conception:

An indication that an end to the current trend may be near occurs when the indicator diverges from the security.
A bullish divergence occurs when [MACD, Stochastic, RSI, Momentum, Bollinger Bands, PowerRVI or OBV] is making new highs while prices fail to reach new highs.
A bearish divergence occurs when  [MACD, Stochastic, RSI, Momentum, Bollinger Bands, PowerRVI or OBV] is making new lows while prices fail to reach new lows.
Both of these divergences are most significant when they occur at relatively overbought/oversold levels.

Bullish divergence:


Bearish divergence:

2. Rules:

The rule is simple. Sell on a bearish divergence. Buy on a bullish divergence.


3.  Fractals:

A fractal is a series of at least five successive bars, with the highest HIGH in the middle, and two lower HIGHs on both sides.
The reversing set is a series of at least five successive bars, with the lowest LOW in the middle, and two higher LOWs on both sides, which correlates to the sell fractal.



Standard Bill William's fractals have period 2: 2+1+2 = 5 bars. We use extended version of fractals with custom period.
In case Fractal.Period = 1 we get 1+1+1 = 3 bars model.
In case Fractal.Period = 3 we get 3+1+3 = 7 bars model.
In case Fractal.Period = 5 we get 5+1+5 = 11 bars model.
etc.

4. Parameters:
 

--- Common ---
extern int AccDigits = 5;
// set AccDigits = 4 if you broker provides 4-digits quotes
// set AccDigits = 5 if you broker provides 5-digits quotes
// in case AccDigits = 5 all pips values will be automatically adjusted by 10

   

extern int MaxBars = 1000;
// to increase the perfomance we draw the indicator for 1000 last bars only
 

--- Divergence ---
extern int LeftFractal.Period = 3;
// left-hand divergence peak is 3-bars fractal,  we check 3 bars on both sides to confirm the peak

extern int RightFractal.Period = 1;
// right-hand divergence peak is 1-bars fractal, we check 1 bar on both sides to confirm the peak
 

extern int Width.Min = 1;
// minimal horizontal distance between 2 divergence peaks, bars

extern int Width.Max = 25;
// maximal horizontal distance between 2 divergence peaks, bars

extern int Height.Min = 15;
//minimal vertical distance between 2 divergence peaks, pips

extern int Height.Max = 1000;
// maximal vertical distance between 2 divergence peaks, pips




--- Graphic ---
extern int Shift.Arrow = 20;
// vertical shift of a divergence arrow (right-hand divergence peak) on the chart, pips

extern int Shift.Dot = 10;
// vertical shift of a divergence dot (left-hand divergence peak) on the chart, pips

extern int Shift.Line = 1;
// vertical shift of the line between divergence dot and arrow, pips


--- Alerts --- (optional)
extern int SignalBar = 1;
// indicator checks this bar for new divergence siganls
// SignalBar value is always equal or higher than RightFractal.Period value
// if RightFractal.Period = 0 then correct SignalBar values ar 0,1,2,3, ...
// if RightFractal.Period = 1 then correct SignalBar values are 1,2,3, ...
// if RightFractal.Period = 2 then correct SignalBar values are 2,3,4, ...
// etc.

extern bool PopupOn = true;
// show popup alert on new divergence true/false



extern bool SoundOn = true;
// play sound alert on new divergence true/false

extern string LongSignal = "alert.wav";
// sound file for a bullish divergence from /MetaTrader4/sounds/ folder

extern string ShortSignal = "alert.wav";
// sound file for a bearish divergence from /MetaTrader4/sounds/ folder

extern bool MailOn = true;
// send email alert on new divergence true/false

Learn more...   about Divergence Indicators

BJF Tradibg Group inc.

http://iticsoftware.com

        

Most people are excited to venture into the world of forex trading for the reason that they are well aware that there is a huge treasure awaiting them in this kind of business. Aside from that, there is constant challenge and many would like to see how far they can get in this volatile yet very liquid equity market. Currently, there is an increasing utilization of forex neural strategies. Several have observed that neural networks help forex traders in speculating and determining the prices of currencies with much greater accuracy. So why is forex neural suddenly popular? Is there really a chance to boost the profit potential amongst traders?

Before we learn about forex neural, let us define first what exactly neural networks are. We all know that the human brain is among the most intricate objects known to us. Apart from the fact that the processing speed is superior, it has also virtual unlimited space for storage of information and data. It has also the ability to be trained and adapt. Because of this, many computer scientists have attempted to create a program that mimics the power of the human brain. Neural networks are those that help the computer to learn and adjust.

Forex neural is basically all about a system that has data structures, which imitates the function of the human brain. A forex neural network has tons of processors that operate in parallel. They have their own skill and can access there individual databank. It is designed to hold numerous data and has its own rules. Forex neural program tells the network how it should response in accordance to a significant external event. It can initiate feedbacks based upon the information that it can access.

As an application in forex trading, the forex neural network has the ability to learn how to trade derived from the data that is being fed to it. So do the forex neural strategies work? The answer is clear here: a computer can definitely trade on its own. It may not even require your help. However, it needs the forex neural network in order for it to work well. However, there are programs nowadays that do not use forex neural strategies. They have their own sets of rules, which can lead to making money for the owner. What they are trying to emphasize is that forex neural networks are actually useless since they have the advantage over them.

The simple technique when using forex neural networks is to make sure that you have provided it and trained it so that it can access good information that will help you get the profits you want. Since there are numerous persons who believe that technology can solve anything, be diverse and wise enough not to think like them. Sure, it seems like there is no limit when it comes to advancement in the area of computers but it needs us humans in order for them to work and be effective.

The forex market is where a simple system can actually work as long as it has good sets of rules that can assist a trader to earn huge profits. Before you gamble into the forex world, remember that 95% of traders here failed because they do not know the right strategies. Despite of the fact that our technology is booming and lucrative, there are still some who do not find success on their endeavors.  Even though neural networks are used in forex to predict the trend, bear in mind that this is only a guess, which can either be correct or wrong. The last decision lies in your hands.



MetaTrader 4 Expert Advisor NeuralScalping

Real account monitoring



Learn more about MetaTrader 4 Expert Advisor NeuralScalping


Regards,
BJF Trading Group inc.

        

Many people want to try out trading with currencies, which takes place in the forex market because they are attracted to the fact that the said market is open and running 24 hours a day. If one wants to succeed in here, he has to have a good strategy that will support him throughout the whole competition. Most forex traders rely on the economic data that has been gathered by either them or the forex software that they are using. This is because they understand that the volatile market as well as the other markets is affected by the economic news around the world.

The Major Currencies

There are eight major currencies that most forex traders follow and focus on. Every single day, there are about seven news releases regarding the economy of the eight countries of the currencies. The traders use the data to update the position they are in. With the strength of the effect of the news on forex trading, it is no wonder that there are several traders who base their decisions on the pieces of data they have acquired. Here, there are actually a lot of opportunities that they can benefit from. The key here is to know and understand the economic news that are released daily and determine how they can act in accordance to the data.

The eight major currencies are the US dollar, British pound, Euro, Swiss franc, Japanese yen, Canadian dollar, New Zealand dollar and the Australian dollar. Based on these currencies, there are over 17 derivatives including USD/EUR, GBP/JPY, AUD/USD and USD/JPY. Thus, with several currencies across the globe, you can literally pick any among them in which you are going to pay attention to. In line with that, the economic releases that you are going to obtain information on should be derived from your main focus. 90% of the traders choose US dollars because the economic news here has the biggest impact on the forex market.

The News Broadcasts

Trading based on the news can be hard because there are a lot of things to consider including the relationship between the consensus figure and the whisper number along with the updates and revisions. In addition, you also have to compare which among the pieces of news that are released for the day are the most important. You will have to judge the relevance of the country in which the news has been released on as well as the time it has been broadcasted.

If you plan on trading based on the news that is released, you have to know when exactly they are being made public. The estimated time of the US dollar currency to release the economic data is from 8:30 to 10:00 in the morning while for the GBP, it starts from two in the morning until 4:30. Bear in mind that trading news involves a lot of work. You have to know exactly which among the news data will be released for that specific week and know which among them is the most important.

Aside from that you have to determine what the key releases are. These include the decision on the interest rates, the retail sales, the unemployment status, trade balance, surveys on business sentiments, consumer confidence and the manufacturing sector. You should be alert on the changes on the economy of the currency you are focusing on. This is because the relevance of the matters continues to shift in importance. To put it simply, you should keep track of the rankings of the economy data that you have acquired. Stay on top of your game by capturing the all the necessary information you require in trading news.

        

One of the strongest signals in trading is convergence-divergence. Many traders call convergence “bearish convergence”, and divergence – “bullish divergence”.

Convergence arises, when a straight line, drawn through two local minima on the oscillator (from left to right - the first one below the second one), and a straight line, drawn through two local minima on the chart (from left to right - the first one above the second one) converge.

Divergence arises, when a straight line, drawn through two local maxima on the oscillator (from left to right - the first one above the second one), and a straight line, drawn through two local maxima on the chart (from left to right - the first one below the second one) diverge.
    
In our opinion, the most effective method is detection of divergence between fractals and oscillator (Stochastic, Macd, RSI, Momentum, Power RVI etc.) – “fractal divergence”.

Many principles of the financial market originate in basic principles of mathematical analysis. The fractal theory in mathematics is based on the fact that phenomena, which surround us, often consist of the self-repeating things – a lift, a tree, a coastal line; all these things are vivid examples of fractal figures. A fractal in mathematics is an infinite geometrical figure, each fragment of which is repeated at scale reduction.

VIDEO - Fractal divergence explanation (MetaTrader 4 Indicator STO-Div)




Fractals – one of five indicators of Bill Williams’ trading system, allowing to find out a trough or a peak of the price chart. An up fractal is technically described as a series of at least five consecutive bars, in which two bars with lower maxima are situated directly before the highest maximum and right after it. The opposite configuration (a series of five bars, in which two bars with higher minima are situated directly before the lowest minimum and right after it) corresponds to a down fractal.






Fractal divergence between Fractals and Stochastic Oscillator (MetaTrader 4 Indicator STO-Div)

Metatrader indicator Sto-DIV shows fractal divergence by Stochastic indicator . When divergence arises between Stochastic indicator and the price it means forthcoming end of current trend. The signal to buy comes when new Low-fractal is below the previous one, and corresponding Stochastic meaning is above the previous one The signal to sell comes when new Up-fractal is above the previous one and the corresponding Stochastic meaning is below the previous one.


Fractal divergence between Fractals and Stochastic MACD (MetaTrader 4 Indicator MACD-Div)
Metatrader indicator MACD-Div indicates fractal divergence by MACD indicator.When divergence appears between MACD and the price, it indicates a high probability that the current trend will finish soon. A signal to buy is when a new Low-fractal is formed below the previous one and a corresponding MACD value is higher than the previous one. A signal to sell is when a new Up-fractal is formed above the previous one and a corresponding MACD value is lower than the previous value. The indicator has a lot of customizable settings.



STO-Div Indicator Parameters:

int Width.Min = 1;	Minimal width of model, bar
int Width.Max = 25;	Maximal width of model, bar
int Height.Min = 15;	Minimal height of model, pips
int Height.Max = 1000;	Maximal height of model, pips
int KPeriod = 21;	Period (bars quantity) for %K calculation
int DPeriod = 12;	Period (bars quantity) for %D calculation
int Slowing = 5;	slowing
int MaxBars = 1000;	Max bar restriction
int Shift.Arrow = 40	arrow shift , pips
int Shift.Dot = 20;	point shift , pips
int Shift.Line = 0;	line shift, pips

We can add extra alerts for our Indicators: pop up alert, e-mail alert and sound.




Best regards,
BJF Trading Group

        

The forex market is clearly one of the most liquid markets of all. By far, this is quite the largest economic market in the world. It is only appropriate that before you plunge into this business, you should have only the best techniques up in your sleeve. There are Metatrader expert advisors available that will help a trader in his quest to success. As long as the trader himself does his homework and selects the best Metatrader, there is a great chance that he will flourish in the business.

Traders, particularly the beginners can seek the assistance of a good Metatrader indicator so that they can be an accomplished trader like the ones who have thrived in this economy. Online forex trading is a complicated world yet many are still venturing here because they believe they will be able to achieve great profits in return. A forex Metatrader expert advisor uses a methodical trading system that will just about eliminate several risks in the business and at the same time, it offers a way for traders to have a steady leverage for the trading process. An expert advisor or EA plays a vital role in the achievement of one’s goals, which is why it is only right that you choose from the various selections available. Bear in mind that whenever there is money, there will always be scammers and self-proclaimed great systems around.

 
Most Metatrader expert advisors are free of charge so take this opportunity to examine which of them works best for you. With the top Metatrader indicator, you will be able to study securities’ quotes while its network allows you to develop and use the automated strategies in trading. These kinds of programs provide brokerage services and an EA that does the trading for you. Typically, there are a lot of traders in the world who lose their money because they do not know how to properly manage their money. They are probably not aware of the general rule in forex trading which is to grab the profits quickly and then cut the losses immediately. Unfortunately, this will really be difficult because of the natural traits of humans.

 
Therefore the traders should be able to take profit consistently no matter how much it is. In addition, you should steadily look for those currency pairs that will give you a winning trade. All that and more can be done if you have make use of a Metatrader indicator. At iticsoftware.com/, there are a number of Metatrader expert advisors that you may want to try.

Regards,

Boris

        

Appearance of important macroeconomic indicators, as a rule, causes high volatility in the currency market; in turn, there is a temptation to trade in a period of appearance of news. Classical literature on the fundamental analysis recommends to avoid trading in the period of publication of significant data, as it is a high risk-bearing trade. In our opinion, a well thought-out approach to trade on news can provide you with a number of good transactions in a month.
    In this article we will consider technical aspects of trade on fundamental news. It is necessary to make a reservation that you should learn theoretical foundations of fundamental data analysis before applying technical tactics of trade on news.
    Before starting consideration of separate strategies, we will allocate a number of general principles which we should follow at opening of positions on news:
- opening of position should not be done manually straight after appearance of news, but by means of pending orders set up in advance;
- it is obligatory to set up “small” stop loss at 10-20 pips;
- the profit is also should not be fixed manually, but by means of pending order – take profit, or by means of trailing stop;
- it is better to be at the terminal and to watch further developments of events at the moment of appearance of news;
- When choosing data for trading, you should give preference to news, which will lead to strong movement in the market with high probability.

Let's explain, why we recommend to work exclusively on pending orders in the period of appearance of news.
The first reason. As we mentioned before, the appearance of news causes splash of volatility in the currency market. In this case, you simply will not have time to join the movement in time. No trader has reaction as quick as lightning. The market will be faster in any case.
    The second reason is actually the other interpretation of the first one. A broker receives different prices from several largest banks, and then selects the closest variant to the price requested by the client. And the broker executes requests in the following sequence: 1) stop loss; 2) take profit; 3) other pending orders; 4) transactions "on demand", i.e. entry into the market "manually". Thereby, after the broker executes all pending orders, the price of entry into the market, offered to you, can be much worse than the quotation, requested by you. Pending order guarantees that the transaction will be opened exactly at that price, which you used to set up the order.
    We’ve also emphasized above that at transactions on news the size of stop loss should be minimal. This results from the fact that after appearance of news the price moves quickly and in one direction. Moreover, 10-15 pips stop loss will provide quite favorable risk/profitableness ratio for the transaction.
    Now let’s examine the principle of setting up take profit. Here we should take into account the average swing of price movement on one or another news. Trace on history the average number of pips that the currency pair, chosen by you, passes on economic indicator data. When take profit is set up, you should also take into account significant support/resistance levels.

News Trading Strategy 1

 

This strategy includes setting up two pending orders in opposite directions – buy stop and sell stop. It would be better to plan the transaction on trade on news in advance; however we recommend to set up pending orders several minutes (!) before appearance of news. All pending orders, which were set up earlier and are not the part of strategy of trade on news, should be removed on the threshold of publication of significant data.

    Then a question arises: on what distance from active market price should we set up pending orders? We will consider possible variants:

 

1) The simplest way – on equidistant distance of 10-20 pips.

 

2) Taking into account the nearest support and resistance levels. We recommend to use this variant, if the current price has come nearer to strong support/resistance levels.

 

3) The third variant seems to be the most reliable. Often enough the price is traded in a narrow range in day of appearance of significant news, before publication of value of indicator.

If it is really so, i.e. you see clearly formed corridor (volatility is very low in the market before appearance of news), then it really makes sense to open a position on news. In this case pending stop orders should be set up outside the bottom and top borders of the range, formed within day.

    You must set up minimal stop loss and take profit, taking into account volatility, when you use any of these three variants.

Using the strategy 1, it is important to close position in time. If you see, that movement of the price of has exhausted itself, it would be better to close position manually. In any case, trade on news assumes holding of position in the market from 30 minutes up to one hour.

 

Example: “Tragic reverse” on Nonfarm (pic. 1).

 

The data on the employment market in the USA for November, 2006, were published on Friday, December, 12th, 2006. Level of unemployment unexpectedly rose from 4.4 % to 4.5%. Such data had to bring pressure to bear upon dollar, and that happened. EUR/USD exchange rate rose approximately on 80 points within an hour after publication of data. According to the principles of trade on news, which we considered above, the transaction on news should have been closed after an hour from the moment of publication of news. If you didn’t do it, you would be overtaken by the strongest reverse: almost one and a half pattern. Certainly, such reverses are quite rare phenomenon, which is almost impossible to predict. However accurate following the rules of trade on news would help you to keep profit and to avoid loss.

 

Friday 08.12.2006

 

 

Picture 1. EUR/USD, М30 (each candle каждая was formed for 30 minutes)

 

 

News Trading Strategy 2

 

    This strategy includes opening of position in one way – in the most probable direction of price movement from the point of view of tools of technical analysis. Here trends are used quite actively. So, for example, opening of position in the direction of day charts movement is possible.

    The position can be opened several minutes before publication of news, having set up minimal stop loss and take profit, taking into account volatility.

    You can set up pending order as an alternative variant, but only in one direction. Requirements on setting up stop loss and take profit remain invariable.

 

Retracement

 

We recommend the following: avoid trade on retracements. If you missed the main movement at publication of data, it would be better to refrain from trade on news at all.

Conclusion

 

Trading on news can give you some good transactions every month and, thereby, to increase the set of tools in your trading strategy. Transactions on news are attractive because of quite high potential of profit and minimal risk.

Metatrader Expert Advisor "News Trader"

This adviser trading principal is based on economic news and is a very useful tool in the portfolio of every trader.  In a given time, several minutes in advance of the news issue NEWSTrader places two different orders. There is a special mode within the adviser which allows to delete one pending order in case if another pending order was made. Several intervals are possible.

The following type of orders can be used:

MarketOrders = false; //open buy and sell market ordrers true/false
StopOrders = true; //open buystop and sellstop pending ordrers true/false
LimitOrders = false; //open buylimit and selllimit pending ordrers true/false

OCO = true; //One-Cancel-Other mode for pending orders

extern int Dist = 50; //distance from the market price to set pending orders  

There is also trailing stop added.

The advise can work both on five-digits and four-digits quotations.

extern bool Acc5Digits = false; //set true if your broker provides 5 digits for EURUSD

Read more about MT4 expert advisor NewsTrader

Post your questions about about Fundamental News Trading and MT4 Expert Advisor "NewsTrading" on our   MT4 Forum

Regards,

BJF Trading Group

        

Neural MT4 EA Introduction

We are glad to bring to your attention new Neural Network Tools. This tool is based on the neuroX library. It is possible to realize neural network1 of practically any topology on the basis of this library. What are the advantages of Metatrader Expert Advisors, based on neural networks, over usual Metatrader Expert Advisors?
    Usual mt4 EA are programmed on the basis of the algorithm, which is based on certain trading strategy. Metatrader EA, which are based on neural networks, are not programmed in the full sense of this word: they are trained. Possibility of training is one of the main advantages of neural advisors over usual advisors. Training is a finding of links between neurons. In the course of training such Metatrader Expert Advisor is capable to reveal difficult dependences, and also to execute generalizations, and in case of successful training Expert Advisor can find true result on the basis of data, which were absent in the training sample.
    If neural metatrader EA is trained correctly, it can predict future behavior of price on the basis of several previous values (patterns2) or on the basis of factors existing at the present moment.
Such Metatrader Expert Advisor is capable to allocate and generalize latent dependences; usual ЕА is incapable of doing it.
    Accurate prediction is possible only when the previous changes somehow really predetermine the future. Therefore it is necessary to note that the neural network should be retrained after a certain operating period for more exact prediction.
    Use of Kohonen maps3 in the network allows to examine the sample (price or other additional data) for many times. Each examination of sample is called “a training epoch”. Initial data (historical data, quotations) are divided into two parts during training: the training sample and the testing sample (as a matter of fact, the testing sample replaces forward test for such Metatrader Expert Advisor).
    So, all our Neural Metatrader Expert Advisors consist or will consist of two basic nodes: neural net, organized by means of NeuralX.dll, and the advisor, which forms a signal for training.

Important! The trained network is saved in the directory Metatrader\tester\files\ and has the filename extension .nnb

    All buyers of advisors, based on NeuroX.dll, can exchange the trained networks and discuss the work of advisors on our forum 24fx.us. We will also train and publish networks on the forum as far as possible.

MT4 NeuroX.dll Description of parameters (This information is given for the developers.)

There are several components in the neuroX.dll library for MetaTrader4, which are created in MQL4 language and used for realization of expert systems of analysis and prediction of the financial market.

The agreement on call of exported functions for scripting programs:

int NewNeuro( int NeuroType ); // Creation of object NeuroID >= 0 or -1 error
int NeuroAgent( string AgentName ); //  Creation of AgentID >= 0 or -1 error
int NeuroLoad( string FileName ); // Creation and load of file NeuroID or -1
string GetProperty( int ObjectID, string Property ); // Reading parameters
bool SetProperty( int ObjectID, string Property, string Value ); // Record
bool NeuroSave( int NeuroID, string FileName ); // Saving data in file
bool NeuroInit( int NeuroID, double& Layers[], int Count ); // Initialization
// Input in network NeuroID data vector Data, OutCnt output и InCnt input
bool NeuroPattern( int NeuroID, double& Data[], int OutCnt, int InCnt );
// Network training using input data | Data, OutCnt output и InCnt input
bool NeuroTrain( int NeuroID, double& Data[], int OutCnt, int InCnt, int Num );
// Calculation in network NeuroID - return in Data, OutCnt outputs on InCnt inputs
bool NeuroCompute( int NeuroID, double& Data

Types of neural components - parameter NeuroType for function NewNeuro()

#define NT_SOM 1 // Self Org.Map Kohhonen.
#define NT_BPR 2 // Back Propagation
#define NT_HOP 3 // Net Hopfild
#define NT_LPF 4 // Low Pass Filter
#define NT_KLF 5 // Kalman Filter
#define NT_GEN 6 // Genetic Algorithm
#define NT_WNN 7 // Wizard Neural Network

Protection of Neural MT4 EA

Sale of advisors with open mql4 code was a policy of our company for several years. Lately we incur losses because of resale of our advisors through fraudulent web sites, exchange of advisors and their use in the championships under other names.

In order to protect our intellectual property we were forced                                                                                                                                                                                                                                                                                                                                                                                                                                                              to protect our advisors by server-based guard. So, you can use the advisor only on one computer, but, at the same time, we do not limit the number of brokers or accounts, i.e. we do not limit the number of metatraders running on one computer (PC, VPS or Dedicated server). For registration of the bought advisor you just need to enter yours e-mail address in a registration window, which opens at the first start of the advisor.

In case of changes of hardware on your computer we will update information about new hardware and re-register you.

MT4 Expert Advisor "NeuralScalpingEA"

Now let’s speak about new NeuralScalping MT4 expert advisor in detail.
The expert advisor consists of the unique scalping expert advisor, which is based on in-depth analysis of the sample by means of overlap of multilayered flat channels that not only gives a chance to identify the price maximum and minimum on a certain time interval, but also allows to estimate the market tendency, i.e. if the market dies away or vice versa. Neural part also analyzes sample in the same time interval and takes a decision to open order or not to open it on the basis of the accumulated knowledge. Options also allow to open order at negative signal of the neural networks, but with changed StopLoss and TakeProfit and smaller lot. It allows to protect the deposit in a better way.

The expert advisor was created for work with currency pairs having low spread, for example, EUR/USD. In order to prevent the pernicious influence of the expert advisor on the market, the number of copies in sale is limited.  MT4 EA NeuralScalping BackTest

1. Artificial neural networks — mathematical models and also their program or hardware realizations, created using principle of organization and functioning of biological neural networks —networks of nerve cells of a living organism. This concept was developed at studying of the processes proceeding in a brain at thinking, and at the attempt to simulate these processes.

2. Patterns – characteristic parts of time charts of prices, which are examined during the technical analysis.

3. Such networks represent the competitive neural network, working on visualization and clustering. It is a method of projecting the multidimensional space in space with lower dimension (two-dimensional); it is also used to solve problems of modeling and prediction.

        

Sphere of neural networks’ financial applications is actually boundless. Any goal concerning manipulation of financial tools, whether it is currency or securities, entails risks and needs to be estimated and predicted thoroughly. How quotations of the basic currencies will change tomorrow? Will outwardly successful company give credit back? How to choose profitable and at the same time reliable “investor’s portfolio”? Analytic departments of financial (and not only financial) companies have to solve all these and hundreds of other problems, using all kinds of analytic instruments. It is no mere chance that financial applications make up quarter of neural networks products market (let’s remind that size of global market of neural networks increases on 40% annually and exceeded 600 million dollars in 1994).

 

Neural networks appeared in Russian market exactly in financial sphere. Fifty neural networks software suites have been sold in Russia for the last quarter, and overwhelming majority (about forty) have been bought for financial use (twenty – for banks). And after such “big shots” as Inkombank, Autobank, and  Eleksbank turned their favorable eyes on neural networks, apparently, that the process of further distribution of neural networks came into self-generation mode (it seems that arguments like “I want the same toy Alexander has” are in common use not only among children). Many companies use neural networks software suites not only for solving concrete tasks, but also for not to be behind competitors in mastering of new weapon.

 

But why are neural networks so attractive? What makes them so good for solving various tasks on prediction and discernment? Not going into details, we can say that currently there are four essentially different approaches for solving tasks of analysis.

 

Firstly, if data are interdependent and their volume is rather small, you can use classic analysis methods (for example, correlation methods). Secondly, you can create an expert system, using rules “if…then”. Thirdly, you can use methods of fuzzy logic (they are in fashion today) and operate with qualitative characteristics, such as “majority”, “reliable”, “some”, etc. And, at last, fourthly, in cases, when input data volume is vast, you have no idea about their interconnections, some part of information is distorted and some part of information is lost, then neural networks will help you. You only have to enumerate factors, which essentially influence the forecasted value, and to find enough examples describing behavior of these values in past. Neural network will “be adjusted” on the given totality of examples by itself, minimizing summary error of prediction. Moreover, analysis of adjusted network allows to find hidden dependences between input and output data, which often remain “behind the scenes”, when using traditional methods. Assuming that character of interconnection between specified parameters won’t essentially change for some time, you can use adjusted and trained neural network for short-term (and sometimes long-term) prediction.

 

“Well, it is not for us…”, - disappointedly says reader, who was nearly fascinated by cold shine of “perfect weapon”. Our financial market is formed solely by ruble rate, and ruble is unpredictable. And also we have mysterious parliament, peculiar taxes, grandiose financial pyramids, extremely simple advertisement, and many other things that make business look like roller coaster “in Russian style”. It is the real truth, but let us give some more precise definitions.

 

Firstly, ruble as well as any other currency (including various coupons, levs, tugriks, etc) can be predicted quite well – we only need high-end computers and one dozen of experts. Game on the world currency market has turned into a war of supercomputers a long time ago. Stories like legend about Soros, whose daring game brought him one billion during one day, gradually become a thing of the past. And when you read in the “Financial Times” that yen “dropped” dollar on two points, it means that yesterday supercomputer of some “Sakura Bank” beat its competitor from “Chase Manhattan” (or vice versa).

 

Secondly, we are not as exceptional as we think we are. Our history saw many events: local conflicts, revolts of interregnum, big scandals around false corporations, etc. Scenarios of their development and influence on financial market are studied well enough. Besides, an entire system of macroeconomic indicators, like Dow-Jones average or S&P 500, has been worked out for many years; they are sui generis “barometers” of current state of market. Many of these parameters have been punctiliously recorded since 1901, and databases of reports for several last months are the object of brisk trade. You might answer that there were no such indicators in Russia. Believe us – they will appear in the nearest future, before you collect dividends from your voucher.

 

At last, thirdly (and it is the most important thing), state of financial market is not determined by one (even dominating) parameter, but the sum total of processes of different nature that have various speed of response. For example, dollar rate can fall down within one hour (it happened more than once), but broker’s expectations, reflected in futures’ quotes for the following month, will change much more slowly. And if you have a tool for assessment of speed of this process (neural networks) and iron nerves, you will have enough time to prepare and play competently and skillfully. Eventually, what is more important for you – to predict “black Tuesdays” or to get stable profit?

 

Let’s study the use of neural network in financial prediction, using concrete example – prediction of currency futures rate. Company that had successfully used neural networks software suite Brain Maker Pro for its internal tasks, decided to try it for prediction of futures quotes on Moscow Commodity Exchange in March, 1995. Futures contract quote on $1000 with June date of payment was chosen as the object of prediction (input parameter of neural network). Input parameters for training of network were changes of futures rates during May, June, and July for the last four trading days (dynamics of the last day was taken into account as a separate parameter, evaluated using special formula), and ruble-to-dollar rate for four days. Training data included forty last trading days (two months). After six and a half thousand steps of training algorithm (it took 3 minutes of calculations) the neural network showed quite adequate reaction on all set of given parameters, i.e. it was trained.

 

Then the neural network was used for ten days for prediction of today’s futures rate for June. The calculations were made when the current dollar rate and the last quote of May futures had become known. As a rule, there was about one hour left till trading on June futures. The result was unexpectedly accurate: the network didn’t once make mistakes in predictions of change tendencies (decline or growth), and deviation of real rate from predicted rate made up no more than 10 rubles in nine cases from ten.

 

Of course, such method can also be used for playing on GKO, for currency dealing, and for many other applications. But the given example is quite typical, because it shows some interesting rules of work with neural networks. Firstly, experience has shown that in spite of simple interface of neural networks they are very delicate and began to obey to their owners only after 2-3 weeks of intensive study and “adaptation”. Secondly, when choosing toolkit, pursuit of low prices does not prove its value. Of course, you can use so called “student” version of neuron network suite for $300, but for new task adjustment you will need high-end professional suite like BrainMaker Pro, OWL or something similar. Thirdly, analytic tools of neuron network suites open new opportunities for study of parameters of tasks, as an adjusted network accumulates in itself hidden regularities of a subject field. For example, in the given example with futures the neuron network suite was also used for analysis of influence of current dollar rate’s fluctuation on futures quotes with delayed date of performance. There was found quite an unusual regularity: on the level +30 rubles for bid there comes a kind of “saturation” of brokers’ expectations, and further growth of rate does not affect futures quotes (generally, it can be explained, however it is quite problematic to find such dependence, using traditional analytic methods).

MetaTrader Expert  " Neuro 1" showed moderate results for more than 4 months real account tests. It is based on simple Artificial Intelligence model and few simple indicators, which feed the network with information. It has small TP to cut profit very fast and the optimization showed that with current parameters of market if he finds the wave he can cut allot! If market conditions doesn't met the profit needs it will sleep. The sleep time also being controlled by Neural Network and you can never say when it get "the good mood" again. Read more>>>

 

And what is about responsibility for decisions making? It is clear that the price for mistake in financial operations is too high! We advice you (following the Americans) to use the following method: if neural network suite shows approach of “black Tuesday”, and, on the contrary, your broker is sure in success – trust broker. If he makes mistake, you won’t lose (because your broker is, probably, quite experienced, and together with him majority of competitors will make mistakes, too) – your neural network suite, which predicted financial collapse correctly, will also predict a winning game strategy. If the neural network makes mistake, you won’t lose, too; you’ll just once more note that computers can’t be trusted. Besides, there are a lot of tasks, where the price of one mistake is not so high, and you have some time to make additional adjustments. For example, Inkombank specialists are seriously thinking over use of neural network suites for selection of the most optimal places for opening of new branch offices. From methodological point of view such approach is safe: undoubtedly, the net will make choice among good variants easier, and knowingly bad variants can be set aside by the expert himself.

 

If to formulate the place of neural networks in arsenal of your financial tools in one phrase, we can say, that the neural network is a prompter for skilful analyst.  Neural network won’t help looser, but good broker can improve his game in many times.

BJF Trading Group

http://iticsoftware.com