A Forex Expert Advisor Based On Momentum Back-Propagation Algorithm And Metatrader5

Since the collapse of Bretton Woods system, the foreign exchange market has gradually developed into the world's most traded financial market. However, a large volume of trading must be accompanied by a high frequency of huge price fluctuation. In this case, up to national policy and the real economy, down to business and personal employment will suffer a heavy blow if they don't take appropriate measures in time. Therefore how to effectively improve the capability of controlling exchange rate risk and responding to the level of exchange rate volatility has become a top priority. Scholars have tried to use various methods to improve the accuracy of forex prediction. Neural network, which is good at nonlinear approximation, has achieved good results in the prediction and trading of the major financial markets.On the basis of the researches about foreign exchange prediction and neural network by scholars all over the world, in this paper, a momentum BP algorithm is used to improve the traditional neural network. Besides, this paper selects the EURUSD data of the past five years to train the network in order to continuously reduce error and optimize the weights. This paper creatively combines trained neural network with Expert Advisors in order to apply to real trading, which not only enhances the practicality of this paper, but also avoids the negative impact of human weaknesses in trading through the method of automation.Finally, this paper uses the EA that based on momentum BP method to test EURUSD data in the last 6 months. The result is analyzed empirically through the most straightforward trading data such as equity curve and rate of return. The results obtained are encouraging, which not only reflects the perfect bridging between neural network techniques and automatic trading techniques, but also brings forex automatic trading and the application of neural networks to a new level.