Using Forex EAs To Automate Trading Or To Get Free Signals

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Reading time: 31 minutes

Automated trading now accounts for the majority of orders executed in Forex: in the US alone, about 70% of daily transactions are made by automatic trading software!

Why? If you’ve done much Forex trading, you’ll know how exhausting trading can be, especially if something goes wrong. There are traders who dream of a partner who is intelligent, not exposed to emotions, logical, always looking for profitable trades, and who can execute those trades almost immediately. If you’re looking for all of that and more, look no further – these qualities also describe automated trading software.

Automatic trading software can be used to trade a range of markets, including Forex, stocks, commodities, cryptocurrencies and more. The software simply analyses the market, and opens a trade so you don’t need to carry it out manually. In a nutshell, with automated software you can turn on your trading terminal, activate the program and then walk away while the software trades for you.

In this article, we’ll share an introduction to automated trading software, including:

  1. What is automated trading software?
  2. How how automatic trading software works
  3. Who can use auto trading programs
  4. The advantage and disadvantages of Forex trading programs
  5. Different financial markets for auto trading software
  6. How to start automated trading

What is automated trading software?

Before we can cover what automated Forex software is, we need to start with the basics: What is automated trading?

Simply, there are two types of trading:

  1. Manual trading
  2. Automatic trading

Manual trading is when you manually open and close trades in your trading platform. Automatic trading, on the other hand, is when a software program analyses the market and places a trade based on predefined parameters.

Automated trading software, also known as Expert Advisors or EAs, can open and close trading positions without human intervention. Some automatic software uses technical analysis to make algorithmic trading decisions, while others use economic news to place orders.

How does automated trading software work?

Automated Forex trading software analyses market information in order to make trading decisions. This information might include currency price charts, economic news and events, spread fluctuations, and other market activity.

By analysing this data, using criteria that has been programmed by the trader, the software identifies trading signals and generate a purchase or sell alert based on those criteria. On this alert, the software can be programmed to automatically carry out the trade.

In summary, the functions Forex auto trading software can carry out include:

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  1. Market analysis, including technical analysis and fundamental analysis based on your trading strategy
  2. Opening trades automatically when the specified conditions are met
  3. Closing open positions according to the specified conditions (take profit, stop loss, reversal . )
  4. Risk management, through limiting the size of open positions or the number of open positions you have at any one time

If you have a Forex trading strategy with an automated approach, you can program your automatic trading software to analyse and trade the markets 24 hours a day, which allows you to seize all potential trading opportunities.

Having said that, although trading algorithms can be great tools, keep in mind that using Forex trading program does not guarantee a profit. The results will depend on the strategy used, and a winning strategy may become a loser if market conditions change.

Are you ready to start automated trading? Then you can try out a range of different tools FREE with Admiral Markets?

How? The process is simple:

  1. Sign up for a free demo account.
  2. Download and install MetaTrader 5.
  3. Download and install MetaTrader Supreme Edition.
  4. Open MetaTrader on your computer, and sign in using your demo account details.

Then you can start using free Expert Advisors to see how automated trading works!

Who can use automated Forex trading software?

Hypothetically, newbies, experienced professional traders and seasoned Forex traders can benefit from using FX trading software to make their trading decisions.

In fact, automated trading software is available for a wide range of prices with varying levels of sophistication to meet different needs. Fortunately, most programs offer a free demo period along with other incentives to buy, which gives you the opportunity to see if a Forex trading program is a good match for you.

What are the advantages of automated Forex trading programs?

Now that we’ve covered how automated trading software works, what are the benefits of using tools like this?

The first advantage of automated trading programs is the removal of emotional and psychological influences when trading. Automated software makes your trading decisions consistent and unemotional, exploiting parameters you have pre-defined, or the default setting you have previously installed.

Many traders – both beginners and experienced – often make trades for emotional reasons. They see there is a lot of activity in the GBP/USD, for example, and they don’t want to miss a potentially profitable trade. Or they see a trade going badly, and manually close it before their strategy says they should. With automated trading, emotional decisions and lapses of judgement do not happen.

Automated software pushes you to clearly set out your trading strategy, rules and objectives in order to program the algorithm, so this forces you to set rules and stick to them!

Next, for currency speculators who make trades based currency spreads, auto Forex trading software can be effective. This is because price discrepancies are instantaneously apparent, the information is immediately read by the trading system and consequently a trade is executed.

Additionally, automated software programs also enable traders to manage multiple accounts at the same time, which is a real plus that is not easily available to manual trades on a single computer. This allows you to seize many opportunities simultaneously, along with running complementary strategies at the same time. For instance, with the right software you could run a scalping strategy and a different day trading strategy for the same financial asset.

For serious Forex traders who have other interests, occupations, or obligations, automated software or an automated Forex trading robot can save considerable time that could otherwise be devoted to other important activities such as studying the markets, analysing different charts, or watching for various events that influence currency prices.

Automated FX trading systems allow you to free yourself from your computer monitor, while the software scans the market, looks for trading opportunities and makes trades on your behalf.

In addition, MetaTrader 4 & 5 applications on iPhone, Android and tablet allow you to easily monitor your trading account wherever you are.

One final benefit of Forex auto trading software is that the marketing incentives to buy specific packages, which might give you extra tools for trading.

While there are many benefits to trading with automated trading software, keep in mind that this is not a recommendation on our part to use automatic trading.

What are the disadvantages of Forex auto trading?

As with any tool, automated Forex trading software comes with disadvantages as well as benefits. Some of these include:

  1. Scams related to the sale of autonomous trading software – not every program out there will perform the way you want it to, which can make it easy to spend money with no benefit.
  2. Lack of knowledge in computer and algorithmic programming – given the previous point, it’s important to understand how your automated trading program works. If you don’t have strong programming or computer knowledge, you might struggle to get the most out of auto trading.
  3. The financial cost of using a professional coder – if you can’t code, you can hire people to create Forex and currency trading programs for you. However, these people can get expensive quite quickly.
  4. The lack of systematic trading training – beyond programming knowledge, it’s also important to have a clear trading system for the trading bot to follow. If you don’t, then you will struggle to see the benefits of automated trading software.

These are the four most common challenges faced by beginners to automated trading. If you are an experienced auto trader, you may encounter other difficulties related to advanced trading strategies.

Remember to take into account these considerations when creating your trading strategy and your algorithm! This will save you some nasty surprises.

Which financial markets are the best for using automated trading software?

Automated trading programs are not all made equal, and it’s important to consider the markets you want to trade when choosing the right one for you. In particular, it is important to apply your strategy in markets that are more likely to provide good trading conditions, but also constant movements on a regular basis.

In our experience, auto traders trade three major markets: Forex, indices and cryptocurrencies. In the following sections, we’ll share the advantages of using automated trading for trading these three markets via CFDs ( Contracts for Difference).

Benefits of automatic Forex trading

  1. Enjoy high volatility every day on dozens of currency pairs.
  2. Get 24/7 continuous quotes, trade any time of day and night.
  3. Take advantage of the strong liquidity of the foreign exchange market, with about $5 trillion in transactions every day.
  4. Many Forex auto traders are available on the world’s two leading trading platforms, MetaTrader 5 and MetaTrader 4. These are the world’s most popular platforms for manual and algorithmic trading.

Benefits of automatic trading on index CFDs

  • Auto trading index CFDs is ideal for day traders. Stock markets open and close at a fixed time, which means your trading session can therefore be limited to trading hours without having to monitor an algorithm continuously.
  • Take advantage of open market movements and strategies developed around gaps in the market open, and market ranges.
  • Tight spread can limit transaction costs, making smaller trades more profitable.
  • Indices reflect news from economy and major companies, meaning you can choose an automated trading program that is triggered by fundamental analysis alerts.

Automatic trading on cryptocurrencies

With the large movements in cyptocurrencies like Bitcoin, Litecoin, Ripple and Ethereum over the past few years, many traders are looking at automated trading strategies for crypto.

Cryptocurrencies are an interesting market for trading algorithms, in that they regularly experiences peaks of volatility. On the other hand, they also experience long periods of range-bound movements.

The advantage of an automatic algorithm is to be able to take advantage of opportunities during peak volatility without the need to monitor the market constantly. In addition, the cryptocurrency market is open seven days a week!

However, be aware that the crypto market is still new and unregulated, so avoid purchasing any automated trading software that is specifically designed for crypto. Instead, focus on software that can trade a range of markets, which you can then program for your cryptocurrency trading needs.

Want to try automatic trading for popular cryptocurrencies, like Bitcoin, Litecoin and Ethereum? Then click the banner below to learn about the different crypto CFDs offered by Admiral Markets.

What’s the best time for auto trading Forex?

The best times to use automated trading software are:

  1. When economic publications and speeches are released by major market players
  2. When technical analysis is at its most reliable

During major publications, markets tend to experience significant movements, which is why many traders specialise in using automated trading based on the economic calendar.

Forex trading software can be programmed to monitor regular economic events, like the announcement of the US unemployment rate. The software can then open an automatic trade following the movements caused by the announcement, as soon as the announcement has been made.

Let’s consider a concrete example:

  • If US unemployment rate is lower than expected, an automated trading system can be triggered to go long on USD and US indices when the price closes above a simple or exponential moving average of a certain period.
  • If the US unemployment rate is higher than expected, the auto software can make short trades when the price closes below a simple or exponential moving average of a certain period.

The other good time to use automated trading software is when technical signals are at their most reliable. When is this?

The best times to activate automated trading systems happen to be when there is no economic data on the calendar, which means assets are more likely to respond reliably technical levels such as major support and resistance.

How to create an automated Forex trading system

To create an automated trading system – one that can be mastered with automated Forex programs – you’ll need to start with you trading strategy.

Simply, a trading program needs rules to follow, and if you are unable to give it those rules (whether you program it yourself or hire someone to do it), it won’t be able to operate effectively. To do this, you will need to:

  1. Develop a trading plan based on your capital and risk tolerance.
  2. Develop an automatic trading strategy with very precise conditions for taking positions and analysing the market. This might be linked to economic announcements, or certain technical levels.
  3. Integrate trend analysis with a filter, to define whether the system should seek to buy or sell (e.g. a moving average).
  4. The precise characteristics of a buy or sell signal depending on whether the trend filter is bullish or bearish (e.g. breaking the last peak for a long position or breaking the last trough for a short position).

By following the four steps above, you will be able to create your own automatic trading system, with the first two steps being essential prerequisites for the creation of your Expert Advisor.

Note the importance of accurate conditions for opening or closing positions. If the instructions are not clear and precise, your system will not perform the desired operations, or perform financial transactions other than those desired.

How to start auto trading Forex

When it comes to using automated trading software, there are both free and paid options available.

How to do free automated trading

Free auto trading simply means you are programming your own automated trading software, rather than buying one of the currency trading programs available on the markets.

To do this, you will need to:

  1. Create a trading strategy with clear rules and triggers for opening and closing trades.
  2. Code that strategy into an Expert Advisor that is compatible with your trading program.
  3. If you haven’t already, download a free trading platform, usually available via your broker. (At Admiral Markets, we offer traders MetaTrader 4 and MetaTrader 5).

If you don’t have the skills to code your own forex trading program, Admiral Markets offers the MetaTrader Supreme Edition plugin for free to all live and demo account holders.

MetaTrader Supreme Edition is a tool for MetaTrader that has a range of exclusive indicators and Expert Advisors (or automated trading programs) that you can use to supercharge your trading. For example, the free software trader EA Admiral Correlation Matrix calculates the correlations between several instruments and markets, giving you a clear picture of the correlated movements of the financial markets – and is 100% free.

Another example is the Admiral Donchian flag which has an alert to warn you of the breakout of a major price level. All free automatic trading software is not intended to open positions – some only serve to send signals and alerts to the trader.

If you’re ready to get started, click the banner below to download MetaTrader Supreme Edition today!

How to do paid automated trading

There are a number of paid options for automated trading.

Once you’ve created your trading strategy, the first option is hiring a professional programmer to build an EA, and then to test it on your trading platform to ensure its effectiveness.

If you decide to have your Expert Advisor MT4 or MT5 develop by a professional, the bill will depend on the complexity of your strategy. As a general rule, the more complex the program is, the more it will cost you.

Option 2 is to download a paid automatic trading software from the MetaTrader Market, accessible from the MetaTrader platform in the ‘Market’ window.

Option 3 is to find an automatic trading program on a third party website.

For options 2 and 3 to be their most effective, it’s important to take the time to learn about the Forex software and check the opinions of users and the strategy used. The main risk lies in mastering the trading strategy of the algorithm. In order to use the automatic Forex trading software correctly, you must understand the strategy it uses.

When you are buying from third-party sites, also be wary of unscrupulous sites that may be selling losing algorithms and using false advertising. If this is a concern for you, do not hesitate to buy a Forex algorithm from a serious developer who can explain the implemented strategy.

Automated trading in MetaTrader

While there are a range of trading platforms that accommodate automated Forex trading, the world’s most popular platform is MetaTrader. Both MetaTrader 4 and MetaTrader 5 offer traders access to a wide range of markets (thousands, with Admiral Markets!) from a single platform, along with advanced charting functionality.

The platforms are also compatible with Expert Advisors (EAs), which allow you to carry out trades automatically.

To add an expert advisor to your MetaTrader chart is very simple:

  1. Select the chart where you would like to add an EA.
  2. Click the “Navigation” panel.
  3. Expand the “Expert Advisors” menu, followed by the “Advisors” menu.
  4. Select your preferred EA and drag it onto the chart. You can also double click on it to apply it to an MT4 or MT5 chart.
  5. Fill the desired parameters into the popup window.
  6. In the “Common” tab, check “Allow Automated Trading”.

Source: Metatrader 5

How to Optimise an MT4 or MT5 Expert Advisor

  1. Type Ctrl+R to open the strategy tester.
  2. Choose an indicator or MT4 EA to test.
  3. Select the symbol (instrument) you want to trade.
  4. Define the unit of time on which the EA will operate
  5. Indicate the spread that the EA will use to simulate positions taken in the past.
  6. Check the “Optimisation” box.
  7. Click “Expert properties” to customise your MetaTrader optimisation.

Source: Optimisation Parameters, Admiral Markets MT4

Once these parameters are customised, all you have to do is press ‘Start’ to start the optimisation!

How to Analyse an MT4 or MT5 Optimisation Report

Once the optimisation is finished, you can go to the results in the ‘Optimisation Results’ tab. The different results can be sorted by:

  • Profit
  • Total number of automatic trades
  • Profit factor
  • Expected payoff
  • Drawdown $
  • Drawdown %
  • Input parameters

You just have to choose the best results to find the parameters that best match the time period tested.

You also have an optimisation graph that looks like the following image:

Source: Chart Optimisation, MT4 Admiral Markets

Beware, very often novice traders who use a trading program tend to fall into over-optimisation and find themselves using an approach doomed to failure because the parameters of their automated Forex systems will be optimised too accurately for a defined period of time established in the past.

Thus, during the periods of future trading, the particular trader who employs such a system will see results very different than those obtained in his backtests, so it is not uncommon to see an automated strategy be largely successful in the past but losing thereafter!

Is optimisation really useful?

If you only optimise a few parameters and your automatic system is dynamic and includes the price action reading, you will be more likely to avoid over-optimising your systematic approach.

On the other hand, it is useless, or even counterproductive, to seek to over-optimise an expert advisor. Finally, if you run several optimisations on your EA, consider changing the dates of the backtests, so that the algorithm is tested on different market context.

4 elements of an automatic trading strategy

Now that you know how to start auto Forex trading, with both free and paid options, as well as the steps to get started in MetaTrader, we will outline four elements that can help you choose the best automated trading strategy.

Keep in mind that these elements don’t guarantee the effectiveness of any automated trading strategy or trading robot, it is only a guide to get your started. Following these steps, however, will help minimise the emotional aspect of your trading and maintain your trading discipline.

1. Strategy logic

The first thing you should consider before an automatic trading strategy is the logic behind the strategy. Here it is useful to consider:

  • Objective benefits
  • Risks
  • Stop losses
  • Momentum
  • Rank
  • Trend

Never underestimate the market conditions in which you will apply your strategy. Not all strategies work in all market environments. You must first consider the environment you are in, and then apply the strategy that works best.

2. Input and output signals

A large number of traders spend a lot of time worrying about the input and output signals in an automated Forex strategy. It is important to understand the general logic implied by the strategy, although we should not overestimate every operation the strategy makes.

In general, this strategy is a start for hundreds or even thousands of operations to come. Try to analyse the performance of the operations as a whole and not individually.

When you review your operations:

  1. Place your winning and losing operations in different places.
  2. Calculate the average of your winning and losing operations, considering a set of at least 10 operations
  3. Ask yourself: The net result of my last 10 operations has been positive or negative, how many pips have I generated or lost?
  4. Try to replicate the winning operations with higher returns.

3. Market conditions

Previously, we mentioned the importance of choosing the right automated trading software for the market in which you are trading. More often than not, traders forget this step.

There are two different types of market conditions. We will define these conditions as:

These two conditions are mutually exclusive. When the market is in a trend, prices are constant and progressing in the same direction. An upward trend is one with higher highs and lower lows, while a downward trend has a series of lower highs and lower lows.

Ranges, on the other hand, are formed when the market is not moving up or down but the price is consolidating. Generally a price will fluctuate between an upper and a lower limit, known as support and resistance levels.

When choosing an automated trading strategy, neither type of market is better or worse – the only thing that should worry you is what kind of market condition your automated Forex strategy is based on.

4. Leverage

Now let’s see the last item on our list: leverage. This is an area that is commonly missed by automated FX operators.

Most of the time, traders expect too much from automated trading strategies before using them. This can lead them to trade with high levels of leverage. And while leverage has the power to amplify your profits, it has the same magnifying effect on any losses.

The danger with automated trading software is that many traders tend to only look at the positive aspects of a strategy and ignore potential losses. This then causes them to choose higher levels of leverage than they should based on their available capital, and can quickly lead to large losses if market conditions change or the Forex bot doesn’t perform as expected.

For this reason, when using automated software, we suggest using effective leverage no more than 10 times. If you are just starting out, you can consider even a lower level, for example 5 times the amount you want to invest.

The benefit of using smaller amounts of leverage is that if your FX strategy experiences a reduction, you only risk a small part of your account and, therefore, you would have much more capital left to negotiate, compared to using higher amounts of leverage..

We hope this checklist helps you towards successful automatic trading. You will begin to implement the best automated trading strategy properly using the right leverage and performance expectations.

5. Bonus tip: Learn from the experts

If you really want to take your trading to the next level, the best way to get started is to learn from those who have been where you are now. The good news is that you can do this with our free webinar series, Trading Spotlight!

Three times a week with three pro traders, Trading Spotlight takes a deep dive into the world’s most popular trading topics. Find out more and reserve your spot by clicking the banner below.

How to choose an automated FX trading program

While our auto trading platforms of choice are MetaTrader 4 and MetaTrader 5, you might want to consider your options on the market. In order to do this, it’s important to define your needs and do your research by reading automatic trading reviews.

Define your needs

Since automated trading systems vary in terms of speed, performance, programmability and complexity, what is good for one trader might not be good for another. Some Forex traders will want a program that generates reports, or imposes stops, trailing stops and other market orders. Other traders, such as those who are less experienced, may want a simpler program with a set-and-forget feature.

With this in mind, the first step is defining your needs for the software.

At their most basic, any automated trading program should be able to perform the following tasks:

  • Generate reports or trading alerts automatically
  • Place stop orders
  • Manage standalone trailing stops
  • Place conditional orders directly on the Forex market
  • Trading in tick, or high speed scalping (High Frequency Trading)

Assuming the programs you are considering can perform all of the above, when it comes to choosing between different currency trading programs, here are some more elements to consider:

  • Real-time market monitoring
  • Remote access capability (this is vital if you travel often, or intend to be away from your PC for a long time)
  • Virtual private server hosting, or VPS, which provides fast internet access, isolates the Forex automated software for security purposes, and also offers technical support
  • Ongoing fees and commissions – is there a one-off charge to purchase the software, or will you need to pay extra fees and trading commissions?
  • Return guarantees, terms and conditions

Read automatic trading reviews

Some auto trading firms claim to have a very high percentage of winning trades. However, as the saying goes, if it sounds too good to be true, it probably is.

In fact, the main criticism made of automated trading software is of unscrupulous people selling losing algorithms. There are many trading scams on the internet, and it can be difficult for new traders to detect them, especially if you’ve never tried automatic trading.

Such advertising claims must be verified, and this is where reviews for Forex automation software can be useful.

A quick Google search will bring up a range of websites that list brokers who offer auto trading support, as well as reviews of specific automated trading programs.

On top of this, the best software publishers will provide authenticated trading history results in order to show the effectiveness of the programs they are offering. The golden rule is to understand that past performance is not a warranty of positive future results.

Consider the costs of the Forex trading program

While cost shouldn’t be your top concern, price competition does currently favour the consumer, so perhaps it’s a good idea to shop around for the best deal. Just be careful not to sacrifice quality for price. Prices for trading packages can range anywhere from hundreds of dollars to thousands.

Try auto trading before you buy

When you’re considering different automated trading software, you’ll find that some firms provide video content of software programs functioning in the market, purchasing, and selling currency pairs. If there are screenshots of account action with trade prices for buy and sell transactions, time of profit posting, and execution – then you should consider checking them out before committing to anything.

While testing new Forex automatic trading software, run the tutorial, or any other training function in order to see if it is appropriate and answers all of your questions. Additionally, you may have to call the support desk for answers to complex questions about programming, like the buy-sell criteria, and exploiting the system in general.

If a help link is offered to you, check how easy it is to navigate, and whether it’s of any use to you. Some of your questions might not be answered through the information provided in the help section and knowledge base. A high level of service and technical support is crucial for Forex traders at any level of experience, but is especially significant for novices and newbies.

Often the majority of the leading firms will also offer a free, non-obligatory test of their automated Forex trading robots, so that the potential customer can see if the program is a good fit. In such a situation, test to see if the program can be installed easily, and ensure that you do not have any difficulties with understanding and using it.

Moreover, ensure that the software is programmable and flexible, so that you can change any pre-installed default settings.

How to test automated trading software

If you have found some auto Forex software that looks promising, the next step is to test it. Backtesting against historical data will help you confirm that the software behaves the way you want, before you put any money at risk.

You can also test the Forex automaton on a demo account over a significant period, or on a significant number of open automatic trades, in order to verify its functioning and its profitability.

A third option for testing is performing a manual test of your strategy on past course data.

In fact, you can test automated trading strategies using Expert Advisors in MetaTrader Supreme Edition, a plugin that includes:

  • The trading simulator
  • The Mini Terminal
  • The Admiral Keltner indicator

These free trading tools allow you to try a systematic trading tools that can eventually become an algorithmic trading strategy.

What is the best platform for automatic trading?

While it’s easy to get caught up in the possibilities of algorithmic trading, it’s also important to consider the trading platform you will use.

The best platform for automatic trading must meet three criteria:

  1. It must be intuitive: You must be comfortable using it
  2. It must be functional: It must not restrict you in your trading strategies
  3. It must be customisable and professional: You must be able to use it for both automatic and manual trading

Forex trading software is numerous but only a few are recognised as reliable and robust. This is one of the many reasons why MetaTrader 4 and 5 are the world’s most popular trading platforms.

And this is why these are the automated trading platform we offer at Admiral Markets:

  • MetaTrader 4
  • MetaTrader 5
  • MetaTrader Edition Supreme
  • MetaTrader WebTrader

Download MetaTrader 5 below.

Which broker should you choose for automatic trading?

Just as choosing the right trading platform is important, so too is choosing the best Forex broker. You could have the ultimate automatic Forex software in your arsenal, but if you aren’t trading with a reputable, ethical broker, you might struggle to access your profits.

With this in mind, it’s important to consider these points when choosing a Forex broker:

  1. Always trade with a regulated broker
  2. Choose a broker that authorises the use of Expert Advisors
  3. Choose brokers with fast order execution
  4. Prioritise Brokers with tight spreads to limit transaction costs and maximise your profits
  5. Choose a broker with a wide range of markets and financial instruments

While the previous five points are essential, this list is not exhaustive! Depending on your strategy, you may have additional requirements, for example: If your algorithm uses a hedging strategy, you must make sure to choose a broker that allows hedging.

For the vast majority of automatic trading strategies, Admiral Markets offers many advantages:

  1. Regulated by some of the world’s leading financial regulators – the FCA, EFSA, CySEC and ASIC
  2. Tight spreads (meaning lower trading costs) on Forex CFDs and other instruments
  3. No opening or closing fees for Forex CFDs – only the spread is paid
  4. Mini lots available CFD, meaning you can trade in low volumes as you test your strategies – with micro lots from 0.01 lots
  5. No minimum stop losses or take profits
  6. Orders executed at the best prices in the market in just a few milliseconds
  7. Speed, comfort and simplicity: enter or exit trades with just one click
  8. Free real-time FX and CFD trading charts in MetaTrader 4 and 5
  9. Access leverage of up to 1:30 for Retail clients, and 1:500 for Professional clients
  10. Minimum deposits from € 200 – start small and increase your investment as you learn the markets

Final thoughts

While automatic trading software is not as simple as most Forex or CFD providers want you to believe, that doesn’t mean it’s impossible!

Like any tool, automated Forex programs are just one that you need to learn. Once you do, they can run your trades for you, while you spend time on the things that are more important to you.

It does not matter what level of expertise you have in Forex trading. Whether you are a beginner, an experienced trader, or a professional, Forex trading automated software can help you.

It is vital to understand that no Forex automated software can guarantee a 100% rate of winning trades. It’s also important to remember that past performance does not guarantee success in the future. However, it is a tool that could give you an edge in the market, when used appropriately.

Ready to dive deeper? Then why not learn to trade in a safe, risk-free environment with a FREE demo account? It is an easy way to learn the basics of Forex trading and polish your skills as a trader before you progress to the next level. Click the banner below to open your free demo trading account!

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About Admiral Markets

Admiral Markets is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world’s most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today!

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

Admiral Markets Group consists of the following firms:

Admiral Markets Cyprus Ltd

Admiral Markets Pty Ltd

Admiral Markets UK Ltd

Reading time: 41 minutes

If you are new to the world of Forex trading, you may have thought about using Forex trading signals to help you speculate on the currency markets. Indeed, following someone else’s Forex signals can clearly save you a lot of time and energy, but it can also help to teach you new trading methods and strategies.

If you are an intermediate trader you may have already encountered a number of different Forex signal providers. The main task for any beginning Forex trader is to learn how to trade efficiently and gain an understanding of the Forex market. That being said, the knowledge of what those signals actually mean for a trader in general, and how to apply them, is useful for traders of all proficiency levels.

The most difficult aspect is to find the best Forex signal provider. Therefore, in this article, we will go through an overview of the services provided by Forex signal providers, along with some of the current providers on the market and what they offer. We will also explain what Forex automated trading signals are, along with the benefits and potential risks of using them and how to generate your own trading signals and become an autonomous trader. Let’s get started!

What are FX trading signals and FX alerts?

A Forex signal is an alert on a trading opportunity, usually in the currency market, but also in other markets. These Forex signals are provided by experienced traders or specialised companies, free or for a fee, through written messages. Trading signals help novice traders with accurate transaction details recommended by real-time Forex signal providers.

Trading signal providers will tell you when to buy or sell an instrument, and where to set the take profit and stop loss to take profits or close the position at an acceptable loss level if the market moves against you. The best trading signals will also explain the reasons for this position.

This means it’s a great way to try new strategies and see how other traders make their decisions. Most FX alerts and FX trading signals can be split into two distinct groups:

1. Fundamental FX trading signals

The first entry in the list is the fundamental approach to Forex signals. Fundamental analysis relates to economic events and market news, all of which can influence the price movements of financial instruments. A fundamental signal is simply one of those events – such as an interest rate announcement – which a trader can use to make informed trading decisions.

To access fundamental signals, traders will need to keep an eye on the news and company announcements. They can also use an economic calendar to stay up to date with upcoming events, to ensure they are ready to act as soon as the news breaks. At Admiral Markets UK Ltd, clients can also see breaking news provided by Dow Jones in the MetaTrader trading platform.

Example: If the European Central Bank (ECB) President’s speech was favourable for the euro, the Forex signal will then aim to buy the Euro against the US Dollar (EURUSD).

2. Technical FX trading signals

While fundamental analysis looks at news and economic events, technical analysis focuses on historical price movements and chart patterns. By seeing how instruments behaved in the past, traders can predict how they might behave in the future – should similar patterns present themselves.

A technical signal is when a chart pattern indicates that an instrument’s price is going to move in a certain direction. Traders can generate their own signals using historical data and indicators, or they can use Forex robots or subscribe to Forex signal services for automated alerts as we go through later on in this article.

Technical Forex signals are frequently issued along with different risk management strategies, in order to ensure minimal losses occur if the current plan does not work out as it was initially expected to. Most online Forex signals tend to fall under this category, which can make the search for the best Forex trading signal provider a much longer task.

Example: EURUSD breaks above a bullish resistance level as part of a bullish trend. This can be a trading signal to take a long position.

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How to find the best Forex signals?

Finding the best Forex signals provider for you can be a daunting task and for good reason. There are thousands to choose from, and some might be Forex scams.

For starters, it is necessary to differentiate between choosing the best free Forex signals and the best paid-for trading signals. This is an important first step because they are actually two different products that are difficult to compare directly.

We can then look at some key data from the signal providers. This will include the subscription price of paid trading signals, seniority, and the existence of a verified track record. This is one of the most important items to look for from a Forex trading signal provider. The results must be verified by an independent third party and made available to the public.

It will also be necessary to read as many reviews as possible about the best provider of Forex trading signals to have a clear idea of what real users think of the services to which they subscribe.

After compiling all this information, you can begin to evaluate the best Forex signals for you. However, caution is still advised. There will certainly be offers that seem too good to be true, which, as you know, means that they usually are. Also, be wary of any grandiose promises of high earnings rates and profits (especially if they also claim to be low risk). You need proof. Search their websites for verified backtests and be very careful before committing yourself.

We will now look at some types of Forex trading signals.

Types of FX trading signals

The type of signal is determined by the particular function it may have, and how it generally operates. Technically there are two types of FX signals which are permanently available in the Forex market, and they are:

  • Manual Forex signals
  • Automated Forex signals

Manual Forex signals

When using manual Forex signals, a trader has to sit in front of the computer for an extended period of time searching for signals to make a final decision on whether to buy or sell a certain currency.

The decisions made by a trader are all based on the trader’s interpretation, and that can potentially be a time-consuming process. The use of these Forex trading signals has an interdependent connection with manual trading.

A human trader is able to assess the foreign exchange market in a way that programs cannot – they can see when it is moving in an unpredictable manner, and therefore are able to pull out of trades. A trader has certain skills and experience, and isn’t just limited to codes and programmed settings like automated systems, so they can get a feeling of whether certain trades will be profitable or not.

Automated Forex signals

Automated FX signals are signals where the trader only asks the software to seek out certain signals to look for. The human psychological stress involved in the process is completely excluded. As a result, the software will automatically interpret which action to choose: i.e. to buy or sell a currency pair. Trading in this manner can be quite accurate, as long as the program has been completed in a proper way, and by a real professional.

Forex trading robots can process much more data compared to a human FX trader. This means that you are personally able to manage several currency pairs at one time, and you will also be able to monitor all the charts you desire 24/7, without missing any significant signals. Nevertheless, the most successful application of signals is often achieved by using a hybrid of both types, which is what most Forex gurus do.

How to find manual and automated FX signals

As for the purchase, both manual and automatic Forex trading signals can be acquired online. When you intend to buy, check first that the signal offers you a free trial. Legitimate businesses will allow you to test the information first, and make sure it is of a good quality prior to buying it.

It’s also important to only work with companies that are willing to provide previous, evaluated results. Furthermore, those firms that validate their information are much easier to trust, rather than companies who refuse to grant traders a free trial and access to audited results. That is definitely the policy of top Forex signals.

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There are four main ways to receive Forex signals. Your choice will depend on your objective, available time, level of activity, desired level of control, and your personal risk profile.

1. FX signals by text message

The Forex trading signal is in this case communicated by message, which can be in the form of an email, SMS or via a mobile messaging application – it is then up to the trader to do the rest. This is often a paid Forex signal service.

In this case, the trader always manages their own trading account and simply follows the signals by entering the recommended positions on their own trading platform.

This allows the trader to have a greater level of trust, as a third party won’t have any control over their trading account.

However, this trader will have to bear a psychological risk. Indeed, when the signal provider suffers a series of losses, it is sometimes difficult for the trader to continue to follow them, and thereby potentially miss the moment when the gains will return.

2. MT4 signals software and copy trading

An automatic copy trading service simplifies the use of Forex signals by using Forex signal software. Via this method, the account of the Forex signal provider and the trader’s account are linked. When an operation is placed by the signal provider on their account, it is automatically entered into the account of the client trader.

The MetaTrader trading platforms (MT4 and MT5) provided by Admiral Markets, offer trading signal software and allow copy trading. This is an intermediate solution as trading becomes automated. The supplier remotely enters positions in the customer’s account, using a special password which only allows them to filter through trades and not access any account services like deposits or withdrawals, etc. In this instance, the trader also retains control by being able to intervene freely if they wish.

Beyond the ability to use Forex trading signals, did you know that with the MetaTrader trading platform, users can access a wide variety of trading indicators and technical tools, trade directly from the chart, or even become a signal provider?

Admiral Markets offers the following MetaTrader trading platforms, which are all free to download:

  • MetaTrader 4
  • MetaTrader 5
  • MetaTrader WebTrader
  • MetaTrader Supreme Edition (A custom plugin for MetaTrader 4 and MetaTrader 5, created by Admiral Markets and professional trading experts)

Click on the banner below to start your free download, which will prove to be very helpful in following through some of the live examples later on in this article.

3. Automatic FX trading signals

The trader can also use automated trading software such as the MetaTrader platform and its EAs, or Expert Advisors, which will automatically generate trading signals in real-time or even automatically enter positions.

EAs, also known as trading robots, are available for free or for sale on MetaTrader platforms, and can also be sold by Forex signal providers.

Automated trading signals manage the account by entering positions, while semi-automated Forex signals highlight trading opportunities, but it is up to the trader to decide whether to enter these trades or not.

4. Account management Forex signals

Slightly different from a trading signal, the managed Forex account allows a sort of ‘fund management’ opportunity where the supplier, or trading manager, has full control over the trading operations of the account and generally do not communicate much about their trading decisions but rather the reasoning behind positive or negative results in the past.

Admiral Markets does not provide account management products or services.

What best Forex trading signal services Offer

The best providers of free and paid-for Forex signals offer several elements of trading, including:

  • The exact levels of entry, stop-loss and exit positions.
  • Analysis or comments in support of their Forex signals.
  • A history of transactions showing gains and losses, and statistics regarding historical results. Preferably verified by a third-party external service.
  • The ability to interact with them.

While these are the main services of a good Forex signal provider, this is not a complete list.

Finding the best Forex signal providers

There is a wide range of trading signal and Forex signal providers in the marketplace, and we have shared an overview of some of the most popular ones below. However, it is still important that you do your own due diligence before choosing a signal provider.

1. GPS Forex Robot

This the first Forex signal service in this list. The number of trading signals sent out by this FX signal provider undoubtedly has something to offer to traders. If you already have some experience and moderate knowledge of the financial markets, you may benefit from using these signals.

If you are trading using the MetaTrader 4 terminal, it would be preferable to use the advanced trade copier. Traders who invest a lot in the FX markets each month often favour this product. There is no monthly subscription at GPS Forex Robot, signals come with $149 one time payment.

Overall, GPS Forex Robot signals are user friendly and provide easy access to good customer support – contact details are clear and they answer almost immediately, which technically serves a user well – which is one more reason why they are in the list of top Forex signal providers.

2. Itic Software

Itic Software provides FX traders with a wide variety of services. They indicate to their clients when it is an appropriate time to carry out buy-sell actions of main currency pairs on the Forex market, based on analysis

Itic Software signals have multiple trading strategies. The wide service they offer is continuously tested by professional traders, products are not repaints, they always provide a source code and use unique mathematical algorithms only.

Best Forex signals software for MetaTrader

Alongside the best Forex signals providers are a range of Forex signal software programs you can use to generate trading signals.

MQL signals

MQL signals are trading signals in MetaTrader 4 (MT4) and MetaTrader 5. The first crucial thing to mention is that MT4 and MT5 trading signals allow you to mechanically follow or copy the trades of FX signal suppliers, directly out of the MetaTrader platform. Additionally, signal suppliers are able to share their signals inside the wide community of various users.

There is a good chance for providers to discover trading opportunities if anyone decides to follow them. In turn, there are many easy-to-use Forex trading signals to be followed, because they are easily accessible in your MT4/MT5 account underneath the tab labelled ‘Signals’. If you decide to turn them on, the only thing you need to do is to sign up for an MQL5 community username.

After authorisation, you can enter it with all the necessary settings in your FX trading platform. There are also advantages to social trading for FX traders, one of which is that it makes it easier to find accurate Forex signals. You can also save in fees, and the risk is diversified. If you have your own manual strategy or, for instance, an Expert Advisor that works well, the MQL may approve it and thus share.

If you do not want to build your own strategy (as it can often be quite a difficult and time-consuming process) you can instead opt to follow a particular trader who you deem to be trustworthy. Your account is also protected, so you do not have to worry when you make a decision to follow a trader, as only you can control your account.

There are two more important features of MQL. The tireless amounts of paperwork are now a thing of the past, so you can start copying reliable Forex signals immediately. Finally, there are low barriers to entry, so as you can see, utilising the MQL can really prove useful for your trading.

You can also open an MQL5 account directly from the MetaTrader trading platform which you can download for free! If you haven’t already click on the banner below to start your free download of the MetaTrader 4/5 Supreme Edition and receive access to copy trading services and free access to Trading Central’s signals:

Viewing the best Forex signals in real-time on MetaTrader charts

It is also possible to view a supplier’s trading signals directly from the MetaTrader trading chart to study the effectiveness and soundness of the Forex signal provider’s strategy.

Source: Admiral Markets MetaTrader 5, showing the Signals tab and Visualise on Chart feature.

This is accessible from MetaTrader 4 and MetaTrader 5 in the “Toolbox” using the “Signals” tab where you can analyze the trading signals in different ways:

  1. The signal provider’s history. This is important to make sure that the strategy that provides the Forex signal is reliable in the long run.
  2. The signal provider’s statistics. This is in order to know the number of gains and losses.
  3. The signal provider’s entry and exit levels to determine the reliability of the Forex signals

From the “Toolbox” area you can also:

  • Register an MQL5 Account. This is an essential step in order to subscribe to FX trading signals provided in the MQL5 Signals tab.
  • Add the provider’s profile to your favourites. When searching for your best free Forex signals you can bookmark several profiles that seem relevant to your criteria.
  • Subscribe to the signals directly via the green “Subscribe for free” button. Once your choice is made you can validate it by clicking directly on this key to launch the copy trading programme.

Before subscribing to signals on a live account, it’s important to test the quality of a signal provider by first using the signals on a demo account. This allows you to test their services in real-life trading conditions but completely risk-free. To open your free demo trading account, click on the banner below:

How to find the best Forex signal provider

The profile page of an FX trading signal provider on MetaTrader has a lot of very useful and practical information to evaluate a trader’s performance. It also shows the strength of their approach and trading strategy which is essential in making the decision to copy a free Forex signal service or a paid-for service.

While the “Signals” tab provides a lot of useful and detailed information to evaluate a trader’s performance, logging in to the signal providers webpage on the MQL5 website provides much more detail, as shown below:

The following examples are taken from different signal providers and are given for information only and to demonstrate the different sections provided on a signal provider’s profile page on the MQL5 website. Past performance is not necessarily indicative of future performance.

Here are a few things to consider when trying to find the best Forex signal provider:

1. Check the numbers

So what do these numbers mean? Let’s take a look:

  • Growth: The gain or loss performance in percentage terms
  • Profit: The monetary gain or loss of the system
  • Equity: The capital amount of the signal provider, including unrealized gains and losses
  • Balance: The balance of the trading account of the trader
  • Initial deposit: The amount originally deposited in the MQL5 trader’s account
  • Withdrawals: The monetary value of withdrawals made from the trading account
  • Deposits: The monetary value of new deposits on the MetaTrader account

2. Check the account statistics

  • Trading Days: The number of days traded by the trading system or by the trader
  • Latest Trade: The date, or time of the last trade
  • Trades per Week: The number of trades per week
  • Avg Holding Time: The average duration of a position
  • Subscribers: The number of registered subscribers to this copy trading signal service
  • Weeks: The number of weeks since the account was opened
  • Started: The date the account started

3. Check the account statistics visual table

  • Reliability index: A reliability index from MetaQuotes to quickly judge the efficiency and robustness of the trading system or the trader
  • Total funds of real accounts indicate the number and total amount of accounts that follow and copy the trader’s transactions

4. Check the trading statistics

  • Algo trading: The percentage of trades executed by an Expert Advisor (EA)
  • Profit trades: The success rate in percentage terms
  • Loss trades: The loss rate in percentage terms
  • Trading Activity: The percentage of time when positions are opened on the account
  • Max deposit load: The maximum deposit amount reached
  • Maximum drawdown: The largest capital loss (drawdown) on the trading account

You will then find a “Copy for XX USD” button on which the price of the subscription is written to track and copy the trader’s transactions.

Comparing the profiles of suppliers of MT5 and MT4 signal providers and their statistics provides insights into the best and most successful trading signals available on MetaTrader.

Even with this research signal providers should be treated with caution. Before using them on your real account, test them safely on a demo trading account with virtual money. Did you know you can open a demo trading account with Admiral Markets for free? Simply click on the banner below so you can start trading, or copy trading, on a free virtual practice account:

Comparison of the best Forex signals

The comparison of different FX trading signal providers can be further elaborated on by analyzing more data related to the performance of their signals. This additional data can be found by browsing the different tabs related to the trading signal provider directly from the MetaTrader platform, under the “Signals” tab in the “Toolbox” section as shown below:

Source: Admiral Markets MetaTrader 5, showing the Signals tab and Profile section of a signal provider.

This section from the MetaTrader trading platform offers a variety of useful statistics and information such as the:

  • Growth: The graphical evolution of the performance of trading signals
  • Balance: The graphical evolution of the account’s assets
  • Equity / Drawdown: The graphical evolution of Equity and Drawdown as a function of time

In particular, the “Trades” section is very useful in providing statistics one can use to compare different signal providers, as shown below:

Source: Admiral Markets MetaTrader 5, showing the Trades section from the Profile section of a signal provider.

So what does this information tell us?

  • Trades: The number of trades since the opening of the trading account
  • Profit trades: The number of winning positions and the corresponding success rate
  • Loss trades: The number of losing positions and the corresponding loss rate
  • Best trade: The monetary value of the best trade
  • Worst trade: The monetary value of the worst trade
  • Gross profit: The gross monetary gains made on the account
  • Gross loss: The gross monetary losses realized on the account
  • Maximum consecutive wins: The consecutive number of winning trades
  • Maximal consecutive profit: The maximum run of profit in monetary terms
  • Sharpe ratio: This measures the reliability of the account relative to the risk. It’s a ratio used by fund managers where anything above one is considered good
  • Recovery Factor: The amount of money risked by the strategy to make the profit it obtained
  • Long trades: The number of long trades the strategy has taken
  • Short trades: The number of short trades the strategy has taken
  • Profit factor: This shows how many times the gross earnings have exceeded the gross losses – it must be the highest possible
  • Expected payoff: the expectation of earnings at each new position
  • Average profit: The average monetary gain per position
  • Average loss: The average monetary loss per position
  • Maximum consecutive losses: The consecutive number of losing trades
  • Maximal consecutive losses: The maximum run of losses in monetary terms
  • Monthly growth: The monthly growth of the trading account in percentage terms
  • Annual Forecast: The annual forecasted growth

There are also some additional tabs which could be useful to analyse when trying to find the best Forex signal provider. This includes a Risks, Distribution, Description, Reviews and News section as shown below:

Source: Admiral Markets MetaTrader 5, showing the Reviews section from the Profile section of a signal provider.

This section is particularly helpful in finding the best Forex signals provider review. Learning about other people’s experiences can give you a good understanding of the pros and cons of a particular strategy provider.

If you’re feeling inspired to start trading, or this article has provided some extra insight to your existing trading knowledge, you may be pleased to know that Admiral Markets provides the ability to trade with Forex and other asset classes, with the latest market updates and technical analysis provided for FREE!

You can start the account opening process here, or watch the video below on how to open a live trading account with Admiral Markets.

Now you know more about how to find the best Forex signals and how to subscribe to them, let’s have a quick recap on some of the benefits of using an automated Forex signal provider.

What are the benefits of using an automated Forex signal service?

While there are some clear risks with copying other people’s trades, there are also some benefits of using an automated Forex signal service, as stated below:

  1. Save time. You do not need to spend time building your own trading strategy. Developing your own FX trading strategy can be a long process, so you may choose to follow a trader with a similar risk profile to your own. You also save a huge amount of time placing trades and monitoring different markets.
  2. Diversify your risk. You may select multiple FX strategy providers so that your outcome does not rely on the performance of only one strategy.
  3. Highlight more trading opportunities. If you have a current strategy or an EA (Expert Advisor), you can quickly add supplementary strategies to your trading mix by adding Forex automated signals.
  4. Save on fees. Social trading is a low-cost alternative to well-known traditional money management.
  5. Low barriers to entry. You are not obliged to possess a minimum account balance to begin social trading. As a matter of fact, anybody with access to the MetaTrader platform is able to do it.
  6. No paperwork. There is no complicated and boring paperwork to go through in order to get started with copying signals.
  7. Maintain control of your account. The account you use for social trading is in your name, so you do not have to give power of attorney to anyone.
  8. You are well protected. When you decide to follow a trader, you choose how much to distribute to their strategy and can place a stop-loss on your MetaTrader platform and trading account in case they do not perform in the way you expect.
  9. Share your success. You can even share your successful strategies.

There are also some extra features specific to using the MetaTrader trading platform “Signals” service and MQL5 website, as highlighted below:

  • There are thousands of different strategies to follow and copy on MetaTrader
  • The identity of a trader is verified
  • You can test the MT5 and MT4 signals on a demo trading account
  • There is no interface to install, copy trading is possible directly from the MetaTrader 4 and MetaTrader 5 trading platforms
  • You can directly evaluate a trader’s history in a transparent and concrete way
  • Comments from other trading signal followers are available to judge the profile of a trader
  • Affordable costs with most around the €30 per month price level
  • You always have control of your trading account from the MetaTrader platform

Of course, there are also some risks and disadvantages of using a Forex signal provider, as discussed in the next section.

Disadvantages of using a Forex signal provider

  • Past performance does not indicate future results
  • It is necessary to stay connected to the MetaTrader platform permanently unless you use a VPS server so that the trades and actions of the supplier are copied all the time to your trading account
  • Performance is not the basis of the remuneration of signal providers
  • You can only subscribe to one signal provider per trading account
  • Note that some trading signal providers use demo accounts
  • If you have a different broker than your signal provider, the actual results on your account may be different depending on the slippage or spread that is different for each broker

Questions to ask before using a Forex signal service

Before following trading signals it is important to understand the strategy and behaviour of the strategy. In other words, do not just look at the end result!

A Forex signal provider can generate a lot of profits, but at what price?

In trading, the more we take risks, the more we can win big, but what we often forget is that we can also lose big too and that’s what happens most of the time for many inexperienced beginner traders.

That’s why before following any Forex signal, you have to be able to answer at least some of these questions:

1. What type of strategy is it? Is it a breakout strategy, a strategy of range or trend?

This is important as you may be able to identify what market conditions you should follow and not follow a particular strategy.

Example: If the strategy of the Forex signal provider is to trade ranges, then you will know that in times of trend you will not win, or you will lose money, so you will have to be psychologically prepared for that or even consider switching to a different provider during that market condition. Do not forget here that financial markets range 75% of the time!

2. Is it swing trading, day trading or scalping?

Short-term trading is more responsive and takes many more trading positions, unlike swing trading which may only take a few positions a week or even a month. What is your preference?

3. What is the Forex signal provider risking to get their results? Is it a risk that you’re ready to take or is it too much money for you?

Example: If the Forex signal provider uses a swing trading strategy with large stop-losses on a volatile pair like the British pound against the Japanese Yen (GBP.JPY) – you need to make sure you have enough capital to take this type of position. If the stop loss is 250 pips and your account is €500, a risk of €20 is not possible on this trade because the stop loss is too big!

4. How many Forex pairs or financial instruments does the signal provider use?

If to earn 20% profit you have to trade 15 Forex pairs and the size of your account does not allow you to do it, is it a good idea to follow this provider?

The answer to these questions will depend on individual circumstances. However, there are also other ways to trade from FX trade alerts and signals, such as using trading signals from the MetaTrader 4 and MetaTrader 5 Supreme Edition plugin, provided by Admiral Markets completely free. If you have not yet downloaded your MetaTrader Supreme Edition, click on the banner below to start your free download:

FX alerts using the MetaTrader Supreme Edition plugin provided by Admiral Markets

MetaTrader Supreme Edition is a special plug-in built by Admiral Markets for the Metatrader (MT) software platform – MetaTrader 4 and MetaTrader 5. The Supreme Edition plug-in hosts 60+ extra features which the standard MT platform does not offer.

The good news is that the SE plug-in is free to download for both MT4 and MT5. This means that you can first test the plug-in without any stress or worry.

The plug-in offers a wide range of advantages. Here is a short-list of all the extra features:

  1. Global Opinion shows the sentiment of worldwide traders for financial instruments.
  2. The Mini Terminal is a handy trade management tool which allows you to open, close and manage trading positions.
  3. The Trade Terminal is an efficient way to manage all of your accounts and orders.
  4. The Tick Chart Trader gives you the ability to see the price move from up close and also allows for trading directly from the tick chart, exporting data, and using different chart types.
  5. Stay connected with real-time news directly within the MetaTrader platform.
  6. The Indicator Package features a large collection of valuable indicators designed to help your trading.
  7. The Trading Simulator gives you the ability to test your strategies.
  8. The Mini Chart allows you to see multiple time frames and chart types in one chart.

As you can see, the MetaTrader Supreme Edition offers many advantages and benefits for traders. You can also trade with famous indicators that have already demonstrated their effectiveness, such as the:

  • Donchian channel
  • High-Low indicator
  • Keltner channel
  • Pivot points
  • And more!

FX trading signals using Admiral Donchian

The free Admiral Donchian indicator measures the volatility of a Forex currency pair. It is also a trend indicator that highlights the highest and lowest points of the Forex market, according to a chosen period of time.

Here’s how to add the Admiral Donchian indicator to your trading chart:

  1. Open your free MetaTrader Supreme Edition platform provided by Admiral Markets.
  2. Open the Navigator window (Ctrl+N).
  3. Expand the Indicators section.
  4. Drag and drop Admiral Donchian onto the chart.

Source: Admiral Markets MetaTrader 5 Supreme Edition, accessed on 12 December 2020 at 6.30 pm GMT, showing the Navigator window and the Admiral Donchian channel indicator.

The upper band represents the highs reached in the previous 20 default periods. The lower bound represents the lows reached in the previous 20 default periods.

A MetaTrader signal is generated:

  1. If the upper limit is crossed. This causes a rise in prices. A series of consistent upper bands moving higher shows a strongly bullish market.
  2. If the lower limit is crossed. This causes a downward progression. A series of consistent lower bands moving lower shows a strongly bearish market.

You can select a pop-up trading alert when prices reach the upper or lower limit to create your very own FX trading signal, as shown below:

Source: Admiral Markets MetaTrader 5 Supreme Edition, accessed on 12 December 2020 at 6.45 pm GMT, showing the Navigator window, the Admiral Donchian channel indicator and option box and a pop-up alert.

You can use these type of FX alerts to:

  • To take a position
  • Be informed of a change of trend in the market
  • Take profits
  • Start a trailing stop-loss

FX trading signals using Admiral High-Low

The free Admiral High-Low indicator shows the maximum and minimum value of price for a chosen period of time.

Here’s how to add the Admiral High-Low indicator to your trading chart:

  1. Open your free MetaTrader Supreme Edition platform provided by Admiral Markets.
  2. Open the Navigator window (Ctrl+N).
  3. Expand the Indicators section.
  4. Drag and drop Admiral High-Low onto the chart.

Source: Admiral Markets MetaTrader 5 Supreme Edition, accessed on 12 December 2020 at 7.30 pm GMT, showing the Navigator window and the Admiral High-Low indicator.

The representation of maximum and minimum levels over a chosen period of time makes it possible both to determine a potential trading zone in which the price can oscillate during a certain period, but also automatic levels of support and resistance.

You can select a pop-up trading alert when prices reach these support and resistance levels, to create your very own FX trading signal, as shown below:

Source: Admiral Markets MetaTrader 5 Supreme Edition, accessed on 12 December 2020 at 7.45 pm GMT, showing the Navigator window, the Admiral High-Low indicator and its option box.

You can use these type of FX alerts to:

  • To take a position
  • Be informed of a change of trend in the market
  • Take profits
  • Start a trailing stop-loss

FX trading signals using Admiral Pivot

The free Admiral Pivot indicator shows different lines of support and resistance on the chart. The central pivot point is the most important support and resistance line.

Here’s how to add the Admiral Pivot indicator to your trading chart:

  1. Open your free MetaTrader Supreme Edition platform provided by Admiral Markets.
  2. Open the Navigator window (Ctrl+N).
  3. Expand the Indicators section.
  4. Drag and drop Admiral Pivot onto the chart.

Source: Admiral Markets MetaTrader 5 Supreme Edition, accessed on 12 December 2020 at 8 pm GMT, showing the Navigator window and the Admiral Pivot indicator.

The Forex indicator Admiral Pivot is interpreted as follows:

  • R1, R2 and R3 represent resistance levels
  • S1, S2 and S3 represent support levels

You can select a pop-up trading alert when prices reach these pivot point lines, to create your very own FX trading signal, as shown below:

Source: Admiral Markets MetaTrader 5 Supreme Edition, accessed on 12 December 2020 at 8.20 pm GMT, showing the Navigator window, the Admiral Pivot indicator and its option box.

You can use these type of FX alerts to:

  • To take a position
  • Be informed of a change of trend in the market
  • Take profits
  • Start a trailing stop-loss

Did you know you can test these indicators completely free by opening a demo trading account? This allows you to trade in a risk-free, virtual trading environment so you can test your skills, indicators or trading signals from other traders. Click on the banner below to open your free demo trading account today:

With this knowledge in mind and the ability to create your own FX alerts, some may be asking the question how you can become a supplier of trading signals and set yourself up as a Forex signal provider.

How to become a Forex signal provider?

Any trader can become a signal provider. To do this, they must provide a piece of identification and be aware that their first and last names will be made public as sellers of trading signals.

In addition, each person is subject to a test period, a trial period of one month during which it is not yet possible to have subscribers.

Whether you are an experienced trader with a solid strategy, or not, you can become a trading signal provider and potentially increase your trading income! If you become a signal provider, other traders will be able to copy your trades and pay you in return.

Here are the steps to becoming a Forex signal provider:

  1. Create an account on MQL5.com
  2. Submit your personal data as part of signing up as a signal seller
  3. Register your trading account as a source of trading signals
  4. Set subscription prices

After checking these items, your profile becomes available to all MetaTrader users.

How to create the best trading signals system

Forex trading signals can use a variety of inputs from multiple disciplines. Generally, technical analysis is a major component, but fundamental analysis, quantitative analysis and economic analysis can also be factors. They can also include sentiment measures and even signals from other trading signal systems.

The goal is to give investors and traders a mechanical, emotionless way to buy or sell a currency pair. In addition to simple buy and sell signals, trading signals can be used to modify a portfolio by determining when to buy more of a particular instrument and to lighten another.

There is no limit to the complexity of a Forex trading signal. However, the best traders tend to keep things simple by using only a handful of tools. For practical reasons, it is much easier to manage a simple signal system and test it periodically to see which components need to be adjusted or replaced.

Too many tools would introduce complexity, which would require more time than a trader may have to offer. As markets evolve over time, complex strategies could be rendered obsolete even before the tests are completed.

Forex trading signals template

The possibilities are endless when it comes to creating a Forex trading signal, but traders tend to just want to automate their thinking. Here are some of the most common signals. Traders can combine them as they wish to meet all the criteria they use to select trades.

  1. A chart pattern breakout system: These can be triangles, rectangles, head and shoulders and trend lines.
  2. A moving average crossover system: Many traders track short-term moving averages crossing above or below long-term moving averages. For example, the 50-period moving average crossing above the 200-period moving average is seen as a bullish sign.
  3. Changes in volatility using the Average True Range (ATR) indicator: There are many ways to measure volatility. The most popular is the ATR. Extreme up or down movements of volatility can trigger changes in the trend of the market.
  4. Extreme sentiment analysis. This is used as a contrarian indicator. Extreme positioning on one side of the market (long or short) can end up in very large price swings as markets unwind positions.

You can learn more about trading strategies and different types of trading analysis and indicators by watching the Admiral Markets Spotlight Webinar where three traders host three live sessions a week covering technical analysis of live markets and more! To reserve your spot in these complimentary webinars, simply click on the banner below:

How to start trading with the best free Forex signals, conclusion

This article has introduced you to a very wide range of free and paid-for trading signals that you can start using today. However, a particularly important warning must be issued and taken seriously regarding free Forex signals and those displaying outstanding performance.

It is therefore generally recommended to try and find reputable trading signal providers, which can often be paid signals. However, Admiral Markets potentially offers you another, better solution with some of the offers presented in this article such as using the advanced indicator set from downloading the Supreme Edition plugin for free, where traders can also access free signals from Trading Central.

If you’re feeling inspired to start trading, or this article has provided some extra insight to your existing trading knowledge, you may be pleased to know that Admiral Markets provides the ability to trade with Forex and other asset classes, with the latest market updates and technical analysis provided for FREE!

You can start the account opening process here, or click on the banner below to open a demo trading account with Admiral Markets:

About Admiral Markets

Admiral Markets is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world’s most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today!

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

Does MetaTrader have access to EAs / Signals on the market?

its called being paranoid.

you will never have reliable guarantee you can only give it your best shot and keep an eye on the things you know are vulnerable to fraud.

i don’t worry about that at all.

If there is anybody invisibly tapping the signal , then they deserve it.

i only look at how much profit something makes.

What good is you highly secured losing signal ?

Well, I’ve had profitable strats that lose profitability when I push too much liquidity into them, so I need to understand whatever platform I use and how it might be ‘reused’.

Another thing that confuses me is why we can’t subscribe to multiple signals. Is it because MetaTrader doesn’t like competition (ie, it’s already blending multiple signals and doesn’t want to compete with its users)? It seems like such an obvious feature and would significantly encourage more subscriptions.

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