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Correlation Portfolio Diversification

Free MQL5 Coding Tutorials Video Series | Expert Advisor

One of the most popular languages to code an Expert Advisor in is MQL5. Hence why there is an entire video series covering the topic. Let’s dive into the first topic.

Multi-symbol Expert Advisor

By coding a multi-symbol Expert Advisor, you can run the same backtest you would typically run on a single asset on multiple assets simultaneously. By doing this, you not only save yourself time but increase the statistical significance of your backtesting and optimisation processes.

This multi-symbol capability also means that when you run your Expert Advisor on a live account. You’ll be able to reduce the load on your computer’s resources, potentially increasing the execution speed.

We’ve touched on some of the Darwinex performance metrics in previous episodes. These have included the Open & Close Strategy Investible Attributes. Instead, let’s focus on the information available under the Underlying Strategy tab.

Clicking on the Underlying Strategy tab displays a wealth of trading data. For example, you can see information regarding the D-Leverage. D-Leverage is a much more in-depth look at the leverage in use at any one time.

Also displayed is the number of trades open simultaneously. This gets broken down further by showing the assets traded and the length of time the trades are open. Assuming the Darwin provider is happy to share this trading data.

As a trader, it is possible to restrict the level of public information available to investors to protect your intellectual property.

By looking at the trade distribution, you can clearly see how many positions are open at any time, how long these positions are open, and how correlated these positions are.

Highly correlated positions open simultaneously will likely result in a spike in the D-Leverage at the same time.

If the Darwin has multiple positions open on uncorrelated symbols, this can mean the Darwin is at lower risk from extreme market conditions.

Another insightful concept is that of creating your own custom performance metrics. By creating bespoke performance metrics, you can fine-tune your optimisation parameters. These custom metrics can lead to a robust optimisation. This optimisation is performed in MT5 using the custom macs option.

In trading, everything revolves around price. So, it is essential that you handle your price data correctly. Because the price data you use to test should be close to the price data conditions you are likely to trade in a live account.

Anyone who creates a live trading account with Darwinex is eligible to open up a Darwin and attract third-party capital. You can even use the Darwinex Investible Attributes and Performance Metrics if you don’t have a trading account. You’ll need to create an online login and import your trading data from your existing broker.

The performance metrics and Investible Attributes that Darwinex makes available are valuable tools for either the trader or the investor to base their trading/investing decisions on.

Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees.

Risk disclosure:

https://www.darwinex.com/legal/risk-disclaimer

Content Disclaimer: The contents of this video (and all other videos by the presenter) are for educational purposes only, and are not to be construed as financial and/or investment advice.

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Single Stocks on the MT4 Platform

Traders at Darwinex can now trade single stock CFDs on the MT4 platform.  This is the precursor to allowing investment in single stock DARWINs.


A year and a half ago we launched our first offer of single stock contracts for difference.  We started with the 30 single stocks on the Dow Jones Industrial Average on the MT5 platform.  Half a year later, we added a selection of the more liquid single stock CFDs from the NYSE and the Nasdaq, likewise on MT5. The total offer extends to some 250 US stocks.  Another half a year later, we launched single stock DARWINs in beta (DARWINs created but not investable).

We are now introducing the possibility to trade our single stock CFDs on the MT4 platform as well. With this change, we hope to significantly increase the number of single stock DARWINs before allowing investment in these DARWINs.


In order to trade live single stocks in MT4, you would have to create a new MT4 account.  You cannot trade them in the same account which you use to trade other assets.  Another restriction is that you cannot connect nor migrate single stock MT4 accounts from another broker.

Open an MT4 account for trading shares


In terms of cost and execution, there is no difference between MT5 or MT4. The $0.04 per contract roundtrip brokerage commission you pay us buys you the best fill in the open market, including both CBOE and every alternative via systematic internalisers under the Mifid regime in Europe.

Consult our single stocks on offer


For a complete explanation of how Darwinex’s share CFDs work, check out this webinar recording from last May. The webinar covers the following topics:

  • Why Darwinex started offering single stocks CFDs
  • Why CFDs instead of cash stocks
  • Risks of CFDs
  • CFDs vs. direct market access (DMA) CFDs
  • The price you see
  • The price you get
  • Slippage in the case of stocks

 


Do you have any questions regarding trading single stocks on MT4? Do not hesitate to share them in comments.


Photo by Arch_Sam on Foter.com / CC BY