• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing:  ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2018 Vol.9(6): 238-243 ISSN: 2010-023X
DOI: 10.18178/ijtef.2018.9.6.622

Developing A Forex Expert Advisor Based on Japanese Candlestick Patterns and Technical Trading Strategies

Watthana Pongsena, Prakaidoy Ditsayabut, Panida Panichkul, Nittaya Kerdprasop, and Kittisak Kerdprasop
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).

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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.

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