Expert Advisors Explained | Learn how to use EAs with MT4 - IG

Risks of Expert Advisors

Inexpert advisors

If the promise of a program that beats the returns of the world's best fund managers at a fraction of the cost sounds too good to be true, then it probably is. So, if you're planning on buying a readymade EA, it is imperative that you carry out your own research to make sure that what you are buying is worth the money.

Lack of human interaction

No matter how sophisticated your EA is, it's no match for the human brain. As such, it is important to remember that while taking some of the emotion out of your decision making is often useful, removing it entirely can bring new problems. It is always important to keep track of how an EA is performing and assessing whether it is in line with your trading logic.

Not always online

Unlike a web trading platform, to run MT4 you have to install it. This means that you can only access it from the device you install it on, and your EAs can onlyrun when that computer is switched on, with MT4 up and running and connected to the internet.

If you want your EA to run round the clock, you'll need a virtual private server (VPS).

What is a virtual private server (VPS)?

A VPS is an online version of your MT4 that is hosted on an external server, enabling your EAs to operate even when your computer is switched off. It solves the problem of needing your computer or mobile device to be running MT4 in order for your EA to function, by hosting an instance of your MT4 on an external server that is always on.

For more information about IG's VPS service, contact our helpdesk at helpdesk.uk@ig.com, or call us at 0800 195 3100.

How to get started with Expert Advisors

You can build your own EA or download one that someone else has already built. Whichever way you choose to begin using an EA, it will need to be backtested to ensure that it works in the way you expect before letting it trade with real funds.

Build an Expert Advisor

EAs for MT4 are built using a programming language called MetaQuotes Language, or MQL. Just like any programming language, getting up to speed with the ins and outs of MQL requires a significant investment of time and effort. You can find guides on the MQL site.

You can also build simple EAs using MT4's inbuilt wizard, or an external strategy-building tool. These visualise the code that is being written underneath, enabling you to put together strategies without having to learn the programming language itself.

Use a pre-built Expert Advisor

If you have found a pre-built EA you want to use on MT4, you'll need to copy it into the 'experts' folder where your MetaTrader 4 is installed on your computer. On a computer, this is usually located on the 'c:' drive.

Once that's done, launch MT4 and expand the 'Expert Advisors' section on the left hand side. Your EA should be located there. Drag it onto a chart to get started, and you'll be asked to review its settings before putting it live.

Backtest your Expert Advisor

You can backtest an EA on MT4 using the strategy tester, which you'll find by clicking 'view' in the top navigation bar. In the tester, select the EA you want to run, as well as the market and timeframe you want to run it against. Backtesting an EA is important to ensure that it is working currently.

EAs can also be run on a demo account within MT4. Just install the EA in exactly the same way as on a live account, and set it running on your chosen markets. With an IG MT4 demo account, you'll be able to trade on over 80 markets using £10,000 in virtual funds, and test some of the freeindicators and add-ons that are available on our live platform.

Note

¹ Whilst Expect Advisors (EAs) are available you use them at your own risk.