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  1. #1
    Rookie Member

    Lightbulb Emulating Binary brokers through your Metatrader4 platform !!!

    Hi guys,
    This is my first thread on this forum so I wanted to contribute something useful. Like most people I came from Forex before I ventured into binary options, so I am quite familiar with MT4 and the ton of indicators, scripts and EA's(expert advisor) available out there.

    When I found out about Binary options, I had a few ideas for strategies that I wanted to test, but no real way to do that properly through MT4 except paper trading. The obvious solution was to open and fund a binary options account with a broker and contact them about a demo. This worked, except for the fact that 2 separate brokers I demoed with (Optionfair & TopOption) cancelled my demo account within 2 weeks without informing me. I really couldn't be bothered contacting them again as they always seem to make such a big deal about creating a simple demo(and who likes their demo account getting cut without being informed?).

    I recalled a few EA's in the past I used that allowed me to manage my order, but couldn't really recall anything that would close an order based on time. After much searching I did find an EA that would do exactly that- Close an order based on set time. So if I had an order that I would want closed after 15 minutes, the EA would close the order after 15 minutes regardless if it was winning or losing at the time. Using this EA with MT4 would essentially emulate Binary Options trading on a broker platform. This would be perfect for testing strategies before going ahead and trading live.

    The link for the EA is here:
    http://www.forexfactory.com/attachme...9&d=1388326576

    The original thread link for the EA is here with all the extra discussion on settings and installation.
    http://www.forexfactory.com/showthread.php?p=7178806

    Obviously all the credit goes to the programmers, so if you want to thank them, go to that thread link and do so.

    If you are unfamiliar with Metatrader, just download the EA and put it in your Metatrader -> "experts" folder. It should then show up under "expert advisors" in the navigator(bottom left) window under the name "SimpleTimeBasedSL OrderManager EA". Drag it onto whatever currency pair you wish to trade and have it set as below:

    Firstly, remember to have Expert Advisors set to on:

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    Then have the settings as below:

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    The only thing you would need to change is the last option(TimeBasedSLperiod). Change it from 15(minutes) to whatever minutes to intend to trade. Obviously in Binary Options brokers the trade duration is not exact(except in Stockpair), but just set it to the approximate expiry duration time that you would normally expect your trade to expire in minutes.

    When using this EA, I tend to like to keep one-click trading on in order to get the best execution. You can do this by clicking on the little upside triangle on the top left on your chart window. You may also have to turn one click trading on in the main options as well.

    Now, obviously the price feeds are going to be slightly different from Forex broker to Binary Broker. But this is normally under a pip.

    Then there is also the problem of bid/ask spread in Forex which is different in Bin brokers. The solution to this is to download a demo account with a true ECN broker like IC Markets which have spreads of less than a pip and also excellent execution. This would be pretty close to the price that you would get at your binary options broker.

    Since you are only testing, the balance and lot sizing isn't important. Just use 0.1 lots per $10000 so you can test as much as you like.
    The EA will automatically close your position after the alloted time has elapsed. You can check to see the outcomes of your trades on the account history tab.

    Once you have finished testing on MT4, figure out your win/loss %, workout your broker's average ITM payouts and work out your profits/losses. Keep practicing until you feel confident in trading live on a binary broker platform.

    If you guys already have a fully funtional demo with a Bin broker, thats excellent! But if not, I think this configuration with MT4 and the time-based EA's is the next best alternative. Also, I don't know if this tool has already been posted before somewhere, so if it has, please don't shoot me . And if anyone has any further questions in setting this up, let me know. Hope you guys found this useful.

  2. #2
    Active Member karin's Avatar
    Yes, it's terrible when they close your demo account without any notice the same happened to me Topoption closed it after 2 weeks or so though I had an account..while 24 option is allowing to keep your demo quite long..

  3. #3
    Rookie Member
    Good to hear that 24option allows you to keep a long demo. I have not yet used 24option but will definitely ask them about their demo in the future. To those who want to demo without putting in a deposit first, this might be a good alternative.

  4. #4
    Legendry Member Michael Hodges's Avatar
    That's a good idea but why not just use CT? it's set up and soon the 2.0 version will be out.

  5. #5
    Rookie Member
    Quote Originally Posted by Michael Hodges View Post
    That's a good idea but why not just use CT? it's set up and soon the 2.0 version will be out.
    Hello Michael, I assume you mean the communitraders platform? Sorry I am only a newbie here I'm not really familiar with it yet. Would it work just like a binary broker demo? I might just go check it out!

  6. #6
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Cobbs View Post
    Hello Michael, I assume you mean the communitraders platform? Sorry I am only a newbie here I'm not really familiar with it yet. Would it work just like a binary broker demo? I might just go check it out!
    It's exactly like a demo account only better, it is not tied to any broker, offers every type of binary trading you might find and comes as a part of your joining the forum. All you have to do is look at the top of this page in the navigation bar where it says "trade and share" , that will take you straight to your CT account where you can start trading, share the trades with us and track your progress on the leader board. I place all of my tips trades on CT, its pretty awesome.

  7. #7
    Rookie Member
    Quote Originally Posted by Michael Hodges View Post
    It's exactly like a demo account only better, it is not tied to any broker, offers every type of binary trading you might find and comes as a part of your joining the forum. All you have to do is look at the top of this page in the navigation bar where it says "trade and share" , that will take you straight to your CT account where you can start trading, share the trades with us and track your progress on the leader board. I place all of my tips trades on CT, its pretty awesome.
    Yeah it does sound awesome. I'll definitely have to check it out Thanks Michael!

  8. #8
    Administrator Martin Kay's Avatar
    You should definitely check it out if you haven't so far!
    thank you for the valuable information. most of our community members are already use MT4, and we're also recommending every trader to test his strategies with MetaTrader. We also have a live MT4 discussion on forum - check it out - http://forums.binaryoptionsthatsuck....ader-4-Q-amp-A

    Cheers!

  9. #9
    Specialist Member RCox's Avatar
    If nothing else, it should be remembered that MT4 is still great for conducting technical analysis. Even if you are not using it to actually place your trades.

  10. #10
    Veteran Member hchandra's Avatar
    No complain with MT4, no disagreement that this is one of the best platform to do technical analysis,
    Aside from MT4, community trader in this forum is enough to test the trade also.

    Looking at the EA shared, it seems intended for shares or forex trading and closing trade after X time is not in the BO,
    but this one is useful to trade "Day" order (Close at the end of trading session).

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