In the world of forex trading everything is moving so fast. This is a crucial aspect of almost any financial world. If you, or any part of your trading process, is halted or hindered even for a short amount of time, that’s it. You could lose a great opportunity and much more.
This is especially true if you’re one of those smart traders who is using automated trading. You can probably guess which method of trading we are in favor of!
In automated trading, any kind of it may be, such as expert advisors on MetaTrader 4 or any other, smooth and uninterrupted access to the market, to the internet, to the power, etc., all of these are extremely crucial.
But what if the power goes out? What if the internet company is doing maintenance in your area? And so many other ifs. Unfortunately, the market does not understand these. That is why in these situations you better use a virtual private server or VPS.
If you don’t know what a VPS is, then don’t worry about it. It’s your lucky day. In this article, we are going to talk about everything related to virtual private servers.
What is a VPS?
Let’s start from the very bottom. Rock bottom even! We’re even going to assume you’re a boomer!
What happens when you want to install a software? You get it and install it on your device, whether a PC, laptop, mobile, etc.
But where do you save everything? The data related to the software? The data related to your activity? On the storage that is on your device – e.g. a hard disk, ram memory, etc.
This is exactly where the idea of VPS enters the chat!
A virtual private server will provide you with a remote server or storage space where you can install and store your software (i.e. the trading platform such as MetaTrader 4) and keep all your trading data and activities.
That’s like the simplest explanation of a virtual private server. But let’s take it up a notch and make it more technical.
A VPS is not just a remote storage space. It is literally a remote, private server that provides you with storage space, uninterrupted power, uninterrupted internet access, CPU, RAM, all that stuff.
It is virtually guaranteed that you will access all of these around the clock 24/7 all the time.
And this is exactly why using a VPS is recommended for all forex traders, especially those who are using automated forex trading with MetaTrader 4. But we will discuss many more reasons why it is necessary to use a VPS with MT4 expert advisors.
How Does a VPS Guarantee Uninterrupted Access to Power, Internet, Etc.?
Before we go any further, let’s take a quick detour and talk about how server providers are able to provide their services, whatever it may be such as internet or power, in an interrupted manner for all eternity!?
The answer is in their construction. This is also why we by and large wholeheartedly trust servers around the world.
There are serious steps that must be methodically taken into account in the construction and setting up of a server space or server farm. There are many different mechanisms put in place to avoid and manage anything that can interrupt the smooth operations of the server, such as any natural disaster, flooding, fire, rupturing of pipes, power outages, you name it.
They’re like nuclear bunkers for your data!
This is just a quick peek into how server buildings are built and managed so users can trust them with their data.
Let’s go further into the topic and see how VPS can help with automated trading in MetaTrader 4.
Why Use a VPS for Automated Forex Trading?
Using a virtual private server with automated trading is not simply a suggestion. It has so many advantages over using your own personal computer or device that it is basically a must.
- 24/7 Operation
First and foremost, a VPS is operating without stop 24/7. Your personal computer or device however can be turned off for any reason. The power might go out, it might restart due to an update, anything.
But a VPS is like a computer that never ever turns off no matter what. So when you are using automated trading, it is simply in your favor to have the algorithm trading for you nonstop.
- Reduced Latency
In a market such as the forex where things can change so quickly, any delay between the time you want to place your order and the time your broker executes your order can mean the difference between profit and loss.
You can simply reduce this latency by choosing a VPS that is physically and geographically closer to the location of your broker.
In this way, even if you are living on the most remote island on earth, you can just rent a “space” so-to-speak near your broker and just say goodbye to unnecessary latency.
- Increased Reliability
As much trust as you might have in your internet service provider or your local power company, your access to the internet or power can be cut off at any moment.
Using a VPS will ensure that your trading process and trading data will not be affected by any internet or power outages.
- Improved Performance
A pleasant upside of using a VPS is that it’s like having an all new computer or device with improved specs.
Running a software such as MetaTrader 4, especially if you plan to trade on high volumes in terms of the number and frequency of trades, relies on certain system resources. So even if you have a personal computer that does not have enough memory space for such operations, you can use a VPS and solve this issue instantly.
- Enhanced Security
Another huge advantage of using a VPS has to do with security matters. Every day there is a lot of news about how hackers have gained unauthorized access to people’s financial data and have stolen their money.
Server spaces are specifically built in with extremely powerful cyber security mechanisms, firewalls, and other robust safety features that protect your data against cyber-attacks.
Servers also back up user data regularly. So you do not even need to be worried about any data loss.
Setting Up a VPS for MT4
We have covered most of the basics related to virtual private servers and how they word. We have also discussed how they can enhance the process of automated forex trading with MetaTrader 4. Now, let’s talk about how you can set up your very own VPS for MT4.
Step 1: Pick a VPS Provider
Pick a VPS provider that is reliable. You can usually find one recommended by your broker or your automated tool provider.
In the next section we will talk about the criteria that are important in picking a VPS.
But for now, let’s assume you have already chosen one.
Step 2: Install MetaTrader 4 on the VPS
- Connect to your VPS using Remote Desktop Protocol (RDP) or a similar tool.
- Download the MT4 platform from your broker’s website.
- Install MT4 on the VPS and log in.
As you can see, what this step says is basically to use the VPS as you would your own computer or personal device.
So instead of using your own personal computer to download MT4, install it, and then log into it, you would do all that on the space provided by the VPS.
It’s really simple. No need for complications.
Step 3: Install Your EA (Forex Bot) and Voila!
Once you have logged in to your MT4 account, you need to download the data related to your EA.
This is of course can be easily found on the website of the platform from which you have acquired the expert advisor.
Once you get the data for EA, follow the steps provided by the EA provider and install it on MT4.
That’s it. Run the EA and let it trade.
Step 4: Monitor Performance
Of course, just because you are using a VPS, it does not mean you have to leave everything forever. You are still in charge as the trader.
At this stage you need to monitor the performance of your EA on the virtual private server regularly.
Tips for Selecting the Right VPS for Forex Trading
While there are well-known VPS service providers and your broker or even EA provider will most likely recommend one or two to you, this article is not about to list VPS providers. That’s for another article.
But here, we want to present you with useful tips that you need to keep in mind for picking a VPS.
- Proximity to Broker Servers
Ideally, you should choose a VPS provider that is geographically close to where you broker is located. This is to reduce latency and minimize your broker response time.
- Dedicated Resources
Another factor to keep in mind is that the VPS provides you with dedicated resources that we already discussed, which of course includes CPU, adequate memory space, etc.
- Broker Compatibility
This is a crucial factor to keep in mind, especially so if you are indeed using automated trading. There are various aspects of compatibility between your broker and the VPS such as technical compatibility.
- Scalability
Your trading activities might be limited in the beginning. But you will probably, if things work out for you, end up scalping up your trading activities to a great extent. So you need a VPS that offers scalability and can upgrade the resources that it provides for you.
- Customer Support
You can also check for user comments and testimonials to pick a service provider that offers reliable and responsive customer support services.
Conclusion
A virtual private server is a tool that goes beyond a mere recommendation for forex traders, especially those who use automated trading. This is because automated trading, in order to be successful and profitable in the long run, needs to have uninterrupted access to the market.
While you may not personally be able to sustain an uninterrupted access to power, internet, etc., due to numerous external factors, a reliable virtual server provider will be able to do that for your data seamlessly and smoothly.
