Tutorial: Code an Algo Trading Strategy Part 2

In part 1 of this tutorial you coded a strategy in the LUA programing language using the Indicore SDK that you can employ on the Trading Station platform. In part 2, you’ll learn how to check your strategy code using the simulation mode on Trading Station in order to ensure your parameters have been coded correctly and your strategy is functional.

Discretionary traders may be familiar with technical analysis and applying indicators on their charts to identify patterns and locate trading opportunities. Algo traders simply code a program to do this for them. This tutorial takes us through the process of automating our idea from manually placing an indicator on a chart to writing the idea in English to coding it into .Lua, which helps us identify the following:

  • Is this strategy possible?
  • Does this strategy makes sense?
  • Do we understand the logic behind this strategy?

Once you understand the strategy and can illustrate it on a chart, you will use simulation mode to test the logic to ensure the strategy opens and closes trades as intended. Simulation mode highlights each time a trade was placed by the strategy, allowing the user to identify and correct any potential errors. If you are a trader that has a strategy but needs help with the implementation, this tutorial is for you.


Risk Warning: The FXCM Group does not guarantee accuracy and will not accept liability for any loss or damage which arise directly or indirectly from use of or reliance on information contained within the webinars. The FXCM Group may provide general commentary which is not intended as investment advice and must not be construed as such. FX/CFD trading carries a risk of losses in excess of your deposited funds and may not be suitable for all investors. Please ensure that you fully understand the risks involved.