How to create an automated trading strategy on Tradeworks

Tradeworks is all about automating your forex and CFD trading strategies through our cloud-based technology. 

Below you will find a detailed step-by-step guide on how to set up a strategy on the Tradeworks trading platform. In this example, we are using Golden Cross strategy where we trade when a fast moving average crosses a slow moving average.

 

Strategy Description
For this example we will be looking at a simple moving average strategy where the 'faster' indicator (i.e. the one with the shorter period) crosses the 'slower' indicator. Depending on how the indicators cross, the strategy will either generate a Bull Signal which will fire a Buy-order, or ther strategy will generate a Bear Signal which will fire a sell order.

 

Instructions:
Follow these steps and you will be automating your first strategy in just a few minutes!

 

1. Log on to Tradeworks
Click on the Create Strategy button on the STRATEGIES page:

You strategy has a default name "Strategy (1)" and is set to trade on EURUSD. You may change these settings by simply clicking on them.

When you change the market you want to trade on then you will by default see eight FX symbols, to see more than this you need to connect to your MT4 account frist.

 

2. Create a new customised Technical Indicator
Create your own customised Technical Indicator to use in this (and future) trading strategy by following these steps:

a) Choose the relevant Indicator from the drop-down menu 

b) Name it and choose the corresponding underlying currency or CFD (the Indicator will be saved and you will be able to use the same Indicator in other strategies)

c) Choose your preferred Timeframe and corresponding Indicator Settings.
(In this example we set the Timeframe to M30, pick MA Simple method, Apply to Close, set Period to 14 and set Shift at 0).

d) Save

 

3.  Create another Technical Indicator
Just repeat step 2 - only this time setting the Period value to 8.

 

4. Create your own customized Entry Signals
Having created two Technical Indicators, we now need to create two Entry Signal rules, which will govern which criteria will fire a trading signal. (Signal Rules can be Bullish or Bearish. In this example we will create one of each beginning with a Bearish Signal Rule).

a) Click the Signal Rules menu

b) Set Signal Type to Bear Signal and click on Indicator. You may change the name of the rule by clicking the blue name.

c) Set Indicator to the 'faster' indicator that you have just saved (i.e. the one with period set at 8).

d) Now we define the logic that will apply to the rule. Click on the Logic button and choose 'Crosses from above to below' on the drop-down menu. 

e) Click on Indicator (to set what indicator is being crossed) and choose your second 'slower' indicator. It will now look like this:

f) When this happens you now have the choice of what to do:

  1. Instantly send a market order, or
  2. Wait for a custom Trade Timing event to happen.

Choose "Instant Market Order" from the drop down.

g) Save!

 

5. Create your Bull Signal Rule
Follow the steps above with the following settings:

a) Set Signal Type to Bull Signal 

b) Choose you 'slower' Indicator

c) Click Logic and choose 'Crosses from below to above'

d) Click on Indicator and choose your 'slower' indicator.

e) Don't change the Instant Market Order trade timing.

f) Save!

 

6. Choose how to handle Multiple Entry Signals
Now let's add a rule that governs what to do if the Entry Signals are generated repeatedly. For the purpose of this strategy, we will choose to Ignore any subsequent signals and to Close and Reverse if we get an opposing signal to any existing positions initiated through this strategy. 

a) Click on My Multiple Entry Signals (created by default on all new strategies)

b) Ensure the first option is set to "Ignore" and the second options is set to "Close and reverse".

c) Save!

 

Now - the only thing we have left to do is to set the rest of our Money Management rules.

 

7. Set your Money Management Rules
Click on the Money Management button and pick Trade Size from pop-up menu.

a) Give your rule a name and set you lot sizes for going long/short. (In this example we will set lot sizes at 0.5 for long and equally for short positions). Save.

 

b) Now click the Money Management button again and choose Position Stop Loss. Give your rule a name and set your Individual Position Stop Loss to either a nominal Dollar amount or PIP value. (In this example we are setting the Stop Loss at 25 PIPs). 

 

 

c)  Now click the Money Management once again and choose Position Take Profit. Give your rule a name and set the desired Take Profit target in either nominal or PIP value. (In this example we are setting the Take Profit target at 50 PIPs). 

 

N.B. For the sake of this example we have omitted to set rules for Maximum Exposure and Account Stop Loss. You can find more tips on using these features elsewhere on the Help Center or just ask the Tradeworks Support Team.

 

8. Wrapping Up
Your strategy should now be complete and ready for activation. Before you activate it, we recommend that you double check that you have all the rules in place and perform one or more back-tests to see the historic performance of the trading strategy you just created.

Depending on what names you have chosen for your rules, you should have something close to the following:

 

Indicators

 

Signal Rules

 

Money Management Rules

 

Once you are comfortable that all the rules ar eset up correctly - you are ready to activate your strategy.

Try it out on a Demo account first and familiarize yourself with the software before you activating your strategies on a real-money account.

 

Happy trading!

 

 

 

 

 

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