Algorithmic & Prop Trading Glossary
Clear, math-backed definitions of quantitative risk metrics, MetaTrader algorithmic parameters, and prop firm evaluation rules.
Expert Advisor (EA)
An automated software program written in MQL4, MQL5, or Python that executes trading rules, entries, exits, and risk management on MetaTrader platforms without human intervention.
Martingale Strategy
A cost-averaging strategy where position sizes are exponentially multiplied (e.g. 1x, 2x, 4x) following each losing trade to recover previous losses with a single winner.
Forex VPS (Virtual Private Server)
A dedicated cloud server running 24/7 with ultra-low latency to broker servers, ensuring automated EAs never disconnect during power outages or internet drops.
Profit Factor
The ratio of gross trading profits divided by gross trading losses over a specific backtest or live trading period.
Sharpe Ratio
A statistical metric that measures the risk-adjusted return of an investment portfolio or EA relative to its volatility.
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