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Using Encog with NinjaTrader and MetaTrader for FOREX and Stock Market Trading

NinjaTrader and MetaTrader 4 are advanced trading platforms. It can be used for both day trading and high-frequency trading. NinjaTrader 7 (NT7) and MetaTrader 4 (MT4) both allow application programs to actually execute the trades. This becomes essential in high-frequency trading, where the computer will execute trades without human intervention. NT7 and MT4 both pull in real-time financial data and feeds it to "indicators" and "strategies" or "expert advisers". These "indicators" and "strategies" and scripted objects that contain computer code. They are the foundation of an automated trading strategy.

Both NT7 and MT4 take very different approaches to indicator development. NinjaTrader uses NinjaScript, which is based on Microsoft C#. If you know C#, then you already know the basics of how to program NinjaTrader. This allowed me to create a special indicator the bridges the gap between NinjaTrader and Encog.

MT4 makes use of a special scripting language, called MQL4. MQL4 is similar to the C programming language, yet is very different than C. This allowed me to create a special indicator the bridges the gap between MT4 and Encog.

Encog is an advanced Machine Learning framework. It includes neural networks, support vector machines, genetic algorithms and simulated annealing. Encog is a very active project that is always evolving to include the latest technologies. Encog already supports 64-bit, multi-core and is adding GPU CUDA processing. These all make Encog one of the fastest machine learning frameworks available. Encog is currently available for C#, Java and C/C++.

Machine Learning, and neural networks, have long been applied to financial markets. With varying degrees of success. The large mutual funds and hedge funds do make use of these techniques. Obviously, exactly how they use machine learning is very secretive.

Encog and NinjaTrader should be a great fit for the application of machine learning techniques to technical analysis. Encog 3.2, the next version of Encog, is focusing on providing specific indicators to allow NinjaTrader and MetaTrader interoperability. Encog already has some financial analysis features, but these will be greatly expanded. This is an on-going process. I will post the current status, as well as tutorials and articles, to this page.

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