MegaTrader PairTrading – Software complex, developed for automation of pair trading strategies.
MegaTrader PairTrading – special version of MegaTrader, designed for realization of pair trading strategies through MetaTrader 4/5 terminals. Software maximally automates all the process of building trading system for pair trading: imports historical data from terminal MetaTrader, calculates all coefficients for trading instruments and automatically builds trading algorithm by its own. As result user achieves fully automated trading robot, which makes deals by its own and ready to use.
The program is easy to understand, user doesn’t need to have special experience or knowledge. MegaTrader PairTrading allows users with any level of preparation to create a trading system ready in less than 5 minutes, and then run it in real work.
Pair Trading, also known as spread trading, statistical arbitrage, basket trading – is the most popular trading strategy of most hedge funds. The reason is that this strategy has a rigorous scientific study, has high profitability, low risk, and makes a profit regardless of market direction. Pair Trading earns constantly emerging imbalances between correlated assets by selling overpriced and buying undervalued, and when the balance is restored - the transaction closes. Read more about the pair trading here.
With MegaTrader PairTrading, pair trading strategies are available to all traders, regardless of their level of wealth and training.
MegaTrader PairTrading supports only MetaTrader 4/5 terminals, and is primarily intended for the realization of pair trading strategies. Full version Megatrader is a universal program, which, in addition to the pair trading strategies, also allows us to implement a variety of arbitrage strategies. Full version includes all MegaTrader PairTrading functionality of the program, but apart from that supports additional sources of leading quotations (CQG, LMAX, Rithmic, dxFeed, Integral, SaxoTrader, etc.), and also wizard for setting Forex arbitrage.
If you are interested only in the pair trading strategy, MegaTrader PairTrading - the optimal choice.
Configuring of MegaTrader PairTrading starts from creating new project, using project wizard. Pay attention, that all parameters, you set on this step are changeable in the future.
In Account window are all MetaTrader accounts with MegaTraderExchange EA, which are running on your computer. After choosing account, you need, in wizard window will appear a lis of trading instruments, which are opened in "MarketWatch" window in MetaTrader terminal. It is necessary to put a check mark on instruments, from which you want to make a spread. Also you need to set timeframe of data, you download.
On this step it is necessary to set time period of downloading data. In default in program is set maximal period of all data, which is available in MetaTrader. Also here you have to set time difference between your computer and MetaTrader terminal (in hours).
Pay attention that initially in MetaTrader terminal, as usual, is available quite little amount of historical data, and to have more data for analyzing, you have to download it from broker’s server. On the next video is shown how to download in MetaTrader 4 maximally available amount of history:
Next step the program automatically chooses optimal parameters of Weight coefficients of instruments, we trade and also calculates what quantity of Lots is necessary, using parameters "tick size" and "tick value". Pay attention that value of "tick size" and "tick value" parameters, MegaTrader PairTrading takes directly from MetaTrader terminal. Thus, if you are going to use created trading strategy on another broker, you must specify the values of these parameters, and if they are different, to specify the new values. In this case the program will recalculate the required number of lots. Moreover, it happens that some brokers settings "tick site" and "tick value", specified in the terminal, do not correspond to reality. In this case, for correct calculation of the number of lots, and you must manually specify the correct values.
Next step program will offer choice from three proven trading algorithms. Each algorithm has its own set of configurable parameters, and by default the program will offer its own version of settings. However, you can try to manually adjust the settings to achieve optimal performance of the trading system.
It should be noted that at any later time you can change the settings. Change the parameters of the strategy can be made using the menu item "Script -> Script parameters", and to change the period of average lines - using the "Chart -> Chart Settings" item.
Upon completion of this step, the program will form the final trading system and perform all the required settings. Now trading robot is ready and it is already possible to run into a real job. However, before you start trading it makes sense to test the trading system on historical data and, depending on the results, adjust parameters of the strategy.
Testing trading systems on historical data is carried out with the help of the strategy tester. During testing, the program runs through the data a predetermined period and simulates the execution of transactions.
On the main screen of the strategy tester is necessary to specify the time period and select the tool for testing: the spread or a particular trading instrument, which is part of the spread. If the spread is selected, the test will take place on the entire portfolio of instruments included in the spread. If you select a specific tool, the test will only be performed on it.
If necessary, you can specify the commission, which is given in points. You must enter a value equal to ½ of the brokerage commission because this parameter is taken into account by the tester at the opening and closing deals. You can also specify the delay in the execution of transactions that will assess their impact on the graph.
According to the results of the testing, program will give detailed information located on three tabs:
To start the system enough to establish a connection with the trading terminal and enable automated trading.
To connect to the MetaTrader, you need to execute the menu command "Connection -> Connect to Metatrader". After connecting to the terminal, the program will display the value of the spread.
To enable automatic trading you need to select "Script -> Run script".
The protocol of all Megatarder PairTrading actions can be viewed on the "Messages" tab.