Abstract—Foreign Exchange or Forex market is considered
the largest trading market in the world. Trading in the Forex
market, traders need to have a good trading strategy in order to
make profits and be a successful trader. However, there are
some factors that create limitations for many traders, such as,
trading behaviors, emotions, and time. The development of
Expert Advisor or EA allows automation of the analytical and
trading processes under the MT4 platform. An EA with a good
trading instruction can provide the ability to make profits and
fulfill the limitations of human trades. In this research, we
propose a novel EA that performs an automatically trade
following the trading strategy. Our trading strategy is the
combination between technical analysis including the ancient
but powerful Japanese candlestick patterns and the modern
technical indicators. The results of the evaluation by using the
strategy tester function in the MT4 platform reveal that the
proposed EA performs a good performance as it makes
approximately 150 percent growth in a year. In addition, we
perform an extensive experimentation in order to compare the
performance of the proposed EA with the existing two EAs. The
results show that the proposed EA have a better performance
than both existing EAs testing in the same period of time and
currency pairwise.
Index Terms—Expert advisor, automated trading system,
foreign exchange market, forex, technical analysis.
Watthana Pongsena, Nittaya Kerdprasop, and Kittisak Kerdprasop are
with the School of Computer Engineering, Suranaree University of
Technology, Nakhonratchasima 30000 Thailand (e-mail:
watthana.p@sskru.ac.th, nittaya.k@gmail.com,
kittisakthailand@gmail.com).
Prakaidoy Ditsayabut is with the School of Biotechnology, Institute of
Agricultural Technology, Suranaree University of Technology,
Nakhonratchasima 30000 Thailand (e-mail: prakaidoy_sut@hotmail.com).
Panida Panichkul is with Faculty of Business Administration and
Accounting, Sisaket Rajabhat University, Thailand (e-mail:
panida.pa@gmail.com).
[PDF]
Cite: Watthana Pongsena, Prakaidoy Ditsayabut, Panida Panichkul, Nittaya Kerdprasop, and Kittisak
Kerdprasop, "Developing A Forex Expert Advisor Based on Japanese
Candlestick Patterns and Technical Trading Strategies," International Journal of Trade, Economics and Finance vol.9, no.6, pp. 238-243, 2018.