Introduction
AmiBroker is a professional charting, analysis, and trading automation platform widely used by retail and professional traders. It allows for automated trading through its advanced scripting language, AFL (AmiBroker Formula Language), integration with brokers via APIs, and third-party plugins. AmiBroker’s flexibility makes it suitable for stocks, futures, forex, and cryptocurrency markets.
Key Features of AmiBroker Automated Trading
1. AmiBroker Formula Language (AFL)
AFL is the backbone of AmiBroker’s automated trading capabilities:
- Custom Strategies: Traders can code strategies using technical indicators, patterns, and price/volume rules.
- Backtesting: Test strategies on historical data with extensive performance metrics, including net profit, drawdown, win ratio, and profit factor.
- Optimization: Parameters can be optimized to maximize performance while minimizing risk.
- Example AFL Code for Moving Average Crossover Strategy:
// Simple Moving Average Crossover
ShortSMA = SMA(Close, 20);
LongSMA = SMA(Close, 50);
Buy = Cross(ShortSMA, LongSMA);
Sell = Cross(LongSMA, ShortSMA);
ApplyStop(stopTypeTrailing, stopModePercent, 2, True);This script generates buy/sell signals automatically and can be linked to broker APIs for live execution.
2. Backtesting and Portfolio Testing
AmiBroker offers sophisticated backtesting features:
- Walk-Forward Analysis: Tests strategies on out-of-sample data for robustness.
- Monte Carlo Simulation: Analyzes strategy performance under random order sequences.
- Portfolio-Level Backtesting: Enables testing multiple strategies across instruments simultaneously.
3. Broker Integration
AmiBroker connects to various brokers for live automated trading using third-party plugins or direct API connections:
| Broker/Plugin | Market Type | Key Features |
|---|---|---|
| Interactive Brokers | Stocks, Futures, Forex | Full API support, direct order execution, margin trading |
| TD Ameritrade | Stocks, Options | Thinkorswim integration, conditional orders |
| MetaTrader | Forex, CFDs | Bridge plugins allow AFL to execute trades on MT4/MT5 |
| TradeLink | Multiple | Open-source integration for automated execution |
| Rithmic | Futures | Low-latency execution, market data streaming |
4. Alerts and Signal Automation
- Real-Time Alerts: AmiBroker can generate alerts based on any custom condition.
- Auto-Execution: Alerts can trigger broker APIs or third-party automation tools to execute trades.
5. Risk Management
AmiBroker allows traders to implement automated risk controls:
- Stop-Loss / Take-Profit: Automatically close positions at predefined levels.
- Position Sizing: Calculate trade sizes based on risk tolerance or portfolio allocation.
- Trailing Stops: Adjust stop levels dynamically to lock in profits.
Example: Automated Trading Workflow in AmiBroker
- Develop Strategy in AFL: Create buy/sell rules using technical indicators.
- Backtest Strategy: Evaluate performance using historical data.
- Optimize Parameters: Use walk-forward or Monte Carlo testing to refine strategy.
- Connect to Broker: Configure API or plugin for live trading.
- Enable Automation: Link AFL signals to broker execution with risk controls enabled.
- Monitor Performance: Track trades and adjust parameters if necessary.
Advantages of AmiBroker Automated Trading
- High flexibility with AFL scripting
- Advanced backtesting and optimization capabilities
- Supports multiple asset classes and brokers
- Strong community and plugin ecosystem
Limitations
- Requires knowledge of AFL or programming skills
- Broker integration often requires third-party plugins
- No built-in trading execution; relies on APIs for live trading
- Learning curve for advanced features and portfolio testing
Conclusion
AmiBroker is a powerful tool for traders seeking full control over automated trading. Its combination of AFL scripting, sophisticated backtesting, and broker integration makes it suitable for a wide range of trading strategies. While it requires some programming knowledge and setup, the flexibility and precision offered by AmiBroker make it a top choice for serious retail and professional traders aiming to automate their trading strategies.