TRIANGLE HEDGING AND AVERAGING TRADING ROBOT FOR METATRADER 4 PLATFORM
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Abstract
This research designs and tests a trading robot designed for the MetaTrader 4 platform. The basic concept of this trading robot is triangular hedging, which involves trading three related currency pairs simultaneously. This robot is designed to automatically execute trades on three currency pairs that form a triangle, with the aim of exploiting price differences and correlations between these currency pairs. In addition, the robot also incorporates an averaging strategy, which makes it possible to correct losing trading positions by opening additional positions at better prices. This averaging strategy helps reduce potential losses and increase the chances of profits in the long term. This robot is also equipped with risk management, including stop loss and take profit settings, which helps protect traders' capital from large losses and keeps risks under control. Testing of the robot is carried out using the forward test method with a demo account. Testing was carried out between 9 June 2023 to 20 September 2023. The initial capital for the demo account was 100USD. The research results show that robots have the potential to generate stable profits (175.58%) and manage risks well (61.42% - although this risk level is still relatively very high). The designed robot can be a valuable alternative tool for Forex traders looking for a more diversified and effective approach to trading. With the use of these robots, traders can make trading decisions that are more informed and responsive to market changes, increasing the chances of success in Forex investments.
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References
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