Forex Trading Robot with Technical and Fundamental Analysis

Abstract

Nowadays currency trading can be done online through a platform called Meta-Trader4. MetaTrader 4, also known as MT4, is an electronic trading platform widely used by online retail foreign exchange speculative traders. It was developed by MetaQuotes Software and released in 2005. Traders can open market execution (buy or sell) any currency pair just through one mouse click. Two trading robots that can automate open and close transaction in forex was build in the previous paper [5]. These robots are designed to analyze the market price based on tools and indicators that are provided by MT4. This type of analysis is called technical analysis. Experiments show that the profit was not optimal in times of sideways. The other type of analysis in forex trading is based on forex-related news and events that affect forex trends. News reports, economic data, and political events that come out about a country is used by the robots to gain a decision support. This paper build forex robot that analyze forex market based on fundamental analysis. Fundamental news periodically extracted from a website that provide forex news calendar, www.forexfactory.com. This calendar is used to know the news impact to the market price. The robot decisions to open, close, or hold a position are reinforced by the news impact that are parsed from the website. Experiments show that the performance of technical robot is more stable than the fundamental robot.