Development of an Optimized Intelligent Machine Learning Approach in Forex Trading Using Moving Average Indicators - Expert Advisor

Aug 4, 2026

The research develops an optimized intelligent machine learning Expert Advisor for Forex trading using two variants of Moving Average indicators. The goal is automated trade execution that reduces losses from human errors and emotional decision-making. A momentum strategy guides trading by exploiting market swings, while a machine learning approach based on a genetic algorithm is trained on historical data within a MetaTrader 4 (MT4) environment. The EA, Exponential Moving Average (ESMA), is implemented with MQL4 to run trades autonomously by intersecting moving averages over selected periods, achieving a 75% profit pass rate in MT4 optimization.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages10

Reading Time25 min

AccessFree to download

Abstract

Introduction

Methodology

LAUTECH Journal of Engineering and Technology 17 (2) 2023: 18-27 DEVELOPMENT OF AN OPTIMIZED INTELLIGENT MACHINE LEARNING APPROACH IN FOREX TRADING USING MOVING AVERAGE INDICATORS 1*Aru O. E. and 1Okechukwu C. C. 1Department of Computer Engineering, College of Engineering and Engineering Technology, Michael Okpara University of Agriculture, Umudike. Corresponding Author: [okezearu@yahoo.com](okezearu@yahoo.com) ABSTRACT This research presents the development of an optimized intelligent machine learning approach in Forex trading using two variants of Moving Average indicators. The main aim of the Expert Advisor (EA) development is to introduce a new intelligent model for automated execution of trades in the Forex market, reducing potential losses due to human errors and sentimental factors in trading Forex. In developing this trading model, Momentum strategy was used since it takes advantage of market swings, along with Machine Learning-Genetic algorithm, being a type of supervised learning used in training the past historical data based on selected trading parameters in a Meta Trader 4 (MT4) platform. The new Expert Advisor –Exponential Moving Average (ESMA) was built using the MQL4 language which is based on C++ for programming specific trading strategies and easily facilitates automated trading. The result is an optimized intelligent trading system that implements the intersection of the two moving averages at various periods, to execute trades autonomously with a profit pass rate of 75% visible from the Optimization chart of the MetaTrader 4 (MT4) platform Keywords: Expert Advisor, Forex Trading, Genetic algorithm, Machine Learning, Moving Averages, Meta Trader. INTRODUCTION The recent interest of Forex analysts and traders in financial institutions and academic communities in the area of intelligent trading systems, otherwise known as Expert Advisors (EA’s), has led to the intensive research on the development of various types of Forex trading systems. This is relatively due to its captivating techniques to outrun the financial market. Many attempts have been made to come up with a consistently profitable system and inspiration has come from different fields ranging from Technical analysis, fundamental analysis, econometric modeling of financial markets, to machinelearning,. Few efforts were profitable and those that appear most promising often could not be utilized in trading real markets due to related practical disadvantages. Among others, these included large draw-downs in profits and excessive switching behaviour resulting in very high transaction costs (Dempster and Romahi, 2002) . Proficient traders do usually consider those automated systems as being highly risky in contrast to the returns they themselves were capable of delivering. Even though a trading model was publicized to generate an acceptable risk-return report on the historical data, there is no guarantee whatsoever that the system would still be effective in the future. It would cease working precisely at the moment it became unable to adapt to the changing market conditions,(Moody and Saffell, 1999) . These developed intelligent systems are able to trade financial markets most times, better than humans (profit, risk management) and most are fully autonomous, Martinez (2007) . Many concepts, divided into technical analysis and fundamental analysis are implemented into the systems, but the tweaks making them successful remain unidentified, Aru O. E. et al. /LAUTECH Journal of Engineering and Technology 17 (2) 2023: 18-27 shrouded in mystery. Different individuals have strived to overcome this by coming up with different trading approaches that can protect them from the inhospitable downfalls ofthe market, as well as still allowing them to access the profitable nature of the market. This has led to some strategies, such as market timing approach utilizing the moving averages from technical analysis becoming exceedingly prevalent,

FAQs

What is the main objective of the optimized machine learning approach in this study?

To develop an Expert Advisor that automates Forex trade execution and helps reduce losses caused by human errors and emotional factors.

Which technical indicators and strategy are used for building the trading model?

The model uses two variants of Moving Average indicators and applies a Momentum strategy to benefit from market swings.

How is the Expert Advisor implemented and evaluated?

The EA (Exponential Moving Average, ESMA) is built using MQL4 on the MetaTrader 4 (MT4) platform, and optimization results show a 75% profit pass rate.

Aug 4, 2026

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