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How To Profit From Falling Naira Without Spending Time?

Posted by Thandiubani on Wed 26th Apr, 2023 - tori.ng

The Nigerian Naira (NGN) is the official currency of Nigeria, a country located in West Africa. NGN has experienced a massive devaluation throughout the second half of 2022 and the first half of 2023. The price of USD/NGN has increased from around 415.00 level to 460.00.

Traders that trade currency markets can benefit from the falling Naira price. Many traders are actively involved in buying and selling currencies. However, there are methods that do not require an active participation. For example, there are swing traders, and long term investors that open and hold positions over a couple of days to weeks and even years in the case of long term investors. On the other hand, there are algorithmic traders that let their trading robots do the job.

The most popular trading platforms are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Both platforms support the use of trading robots. Trading algorithms of MetaTrader are called Expert Advisors (EAs). The market is filled with expert advisors for FX trading since these platforms have been around for years and many developers had time to make their contributions.

Both platforms are fairly old. MetaTrader 4 was released in 2005, and MetaTrader 5 was introduced 5 years later. Both platforms became instantly popular and they both keep the first place in popularity even today. As a result, there are plenty of EAs available for customers in the Meta Market.

Benefits of algorithmic trading over manual trading

Algorithmic trading involves computer programs making trading decisions based on strategies and rules without human intervention. Humans are only involved in the beginning stage when robots are created. In addition, trading algorithms can be updated to adapt to the changing market conditions. The main benefits of algorithmic trading include:

Speed: trading robots can analyze markets and execute trades much faster than humans, which can lead to better execution. Algorithms are great at taking advantage of short timeframe market opportunities.
Accuracy: trading robots are highly accurate, because they can remove human emotions and biases from trading decisions.
Efficiency: trading robots do not get tired, sick or go on vacations. They operate 24/7 without the need of rest, which leads to better productivity.
Backtesting: there are lots of backtesting algorithms available in the Meta Market. Backtesting helps traders compare their trading systems with the historic chart data. This allows them to refine and optimize their strategies before putting their capital into risk.
Risk management capabilities: Algorithms can manage risks better because they do not have human emotions. They enter traders based on predetermined rules, and automatically exit when predetermined thresholds are reached.
Scalability: algorithms can handle large volumes of trades simultaneously. In addition, they can execute orders without physiological difficulties. Most traders that trade manually have difficulty managing larger positions. For example, a trader that trades using a 1000 USD account might take wild risks, while a trader that manages 100,000 USD will be more conservative. Managing increased positions manually requires mental toughness and traders need to think in terms of percentage points instead of sheer numbers.

How to find the most suitable trading algorithm in the Meta Market?

It’s important to note that MetaTrader 4 and MetaTrader 5 use different coding languages. The coding language of MT4 is called MQL4 and the coding language of MT5 is called MQL5. This means that you cannot use the trading algorithms of MT4 on MT5 and vice versa.

There are a couple of ways to find the most suitable trading algorithm on the Meta Market, you can follow these steps:

Visit the MetaMarket and create an account in case you don’t have one already.
Navigate to the trading section of the website, where you can see the list of available robots.
You can filter the algorithms based on various criteria, such as their risk level, performance and market type. It’s important to note that not all algorithms that are posted are up to date or profitable. It’s critical that you do your research prior to using a free robot or making a purchase. Make sure that your algorithm has positive reviews.
The moment you find an algorithm that meets your needs, you can select it and configure it for your trading account by setting trading rules and capital amount.
Lastly, you can monitor the trading robot over time and make adjustments as needed to optimize your results.

It’s critical to note that trading algorithms involve significant risk and may not always be profitable. Trading algorithms are generally built for trading certain markets and under certain market conditions. And they do poorly when those conditions change. However, we are currently witnessing the falling value of the Nigerian Currency, which gives traders a great opportunity to benefit from the currency’s deflation.