Why Auto-Trading Bot Won’t Open Positions – Beginner Fixes

1. Introduction

Automated trading systems (EAs) are tools that streamline investors’ trades in the FX and stock markets and enable stable trading that is not influenced by emotions. However, you may occasionally encounter the issue of “the automated trader not taking a position.” Understanding the causes of this phenomenon and addressing them properly is important.

In this article, we will explain the following points in detail.

• Main reasons why an automated trading system does not take a position
• Steps to verify the issue
• Effective solutions and concrete examples

By reading this article, you will gain knowledge to stabilize the operation of automated trading.

2. Main Reasons Why Automated Trading Doesn’t Take Positions

2.1 Configuration Mistakes

One of the main reasons an automated trading system doesn’t work correctly is configuration errors. Beginners, in particular, tend to overlook points like the following.

Automated Trading Permission Disabled

• In MT4 or MT5 settings, the automated trading feature may be disabled.
• How to Check Settings:

From the MT4/MT5 menu, click “Automated Trading” and set it to the green state.

Drag & drop the EA onto a running chart and ensure the “Allow Automated Trading” box is checked.

Improper Lot Size or Risk Settings

• If the lot size is set too low or too high, the system may stop operating.
• Solution:
• Change the lot size to an appropriate value such as 0.1 or 1.
• Check your risk tolerance and align it with the EA’s settings.

2.2 Market Environment Impact

If market conditions do not meet the entry criteria, the automated trading system may not take positions.

Reduced Volatility

• In low‑volatility markets, the EA may be unable to find entry opportunities.
• Examples: during major market closing hours or immediately before/after major economic releases.

Widening Spread

• When spreads widen, entry conditions may no longer be met.
• Extra caution is needed especially for low‑liquidity currency pairs or time periods.

2.3 Limitations Imposed by EA Logic

Automated trading systems have pre‑configured logic. This can sometimes prevent entries.

Differences Between Trend‑Based EA and Range‑Based EA

• Trend‑Based EA:
• Refrains from entering when there is no clear price trend.
• Range‑Based EA:
• Avoids entries when the trend is strong.

Impact of Filter Settings

• If filters are overly restrictive, the EA may not act even when opportunities exist.

2.4 Technical Issues

Technical factors cannot be ignored.

VPS or Network Connectivity Issues

• If the VPS (Virtual Private Server) is down, the EA will not operate.
• Solution:
• Check the server’s operational status.
• Ensure network connection stability.

MT4/MT5 Error Log

• If the system encounters an error, you can view it in the MT4/MT5 “Journal (Operation History)” tab.

• Solution:
• Search for the error message and apply the appropriate fix.

3. Specific Verification Steps When Automated Trading Does Not Take a Position

If automated trading does not take a position, the simple steps to identify the cause are shown below. This section explains concrete methods that beginners can also execute.

3.1 Step 1: Verify the Basic Settings of Automated Trading

The first thing to check is whether the automated trading feature is properly enabled.

Check if the Automated Trading Feature Is Enabled

• Check the “AutoTrading” button in the top menu of MT4/MT5.
• Green icon: Enabled

• Red icon: Disabled

Verify Chart Settings

1. Right‑click the chart where the EA is applied and select “Expert Advisor” → “Properties”.
2. Ensure the “Allow automated trading” option is checked.

Re‑check the EA Properties

• Confirm that the lot size, maximum risk, and tradable time window match the EA’s specifications.

3.2 Step 2: Analyze Market Conditions

Next, verify whether the market situation meets the EA’s entry conditions.

Check Volatility

• If candle movements on the chart are very small, entry opportunities may be limited.
• Confirm that the currency pair used is highly liquid (e.g., USD/JPY or EUR/USD).

Check the Spread

• Check the spread from the “Quotes” display in MT4/MT5.
• If the spread is wider than usual, the EA’s conditions may not be met.

Important Market Events

• Check the economic calendar to see if you are near any data releases.
• For example, on days with employment reports or central bank announcements, many EAs avoid taking positions.

Economic Calendar – Search (link)

3.3 Step 3: Resolve Technical Errors

If the EA does not operate despite having correct settings and market conditions, check for technical issues.

VPS (Virtual Private Server) Connection Status

• Ensure the VPS is operating normally.
• Excess load on VPS resources (CPU, memory) can cause latency.

Check MT4/MT5 Error Log

1. Open the “Terminal” window in MT4/MT5 and select the “Journal (Activity Log)” tab.
2. Check the displayed error messages.

• Common error message examples:
  • “Trade is disabled”: Automated trading is disabled.
  • “Invalid lots”: The specified lot size is invalid.

Verify the Latest Version

• Check that the MT4/MT5 you are using is the latest version.
• If it is an older version, the newest EA may not function correctly.

3.4 Additional Checkpoints

• Check Tradable Time Windows:
• Some EAs are configured to trade only during specific times. Verify the EA’s specifications.
• Check Account Type:
• Ensure the strategy used by the EA matches the account specifications (e.g., ECN account or standard account).

4. Specific Measures When Automated Trading Does Not Take a Position

After identifying the reasons why automated trading does not take a position, it is important to implement appropriate countermeasures. This section presents specific solutions for each cause.

4.1 Correcting Configuration Errors

Reconfiguring the Automated Trading Feature

1. Check that the MT4/MT5 “AutoTrading” button is enabled; if it is red, click it to turn it green.
2. Open the EA’s properties, check “Allow Automated Trading,” and verify again.

Adjusting Lot Size and Risk Settings

• Examples of Optimal Lot Sizes:
• For small capital: 0.01–0.1 lots
• For medium capital: 0.1–1 lot
• Recommended Risk Management Settings:
• Limit risk to 1–2% of the account balance.

Reinstalling the EA

• If the EA behaves abnormally, deleting it and reinstalling may resolve the issue.

4.2 Adjusting the EA to Market Conditions

Dealing with Insufficient Volatility

• When volatility is low, choose highly liquid currency pairs (e.g., EUR/USD, USD/JPY).
• For trend-following EAs:
• Temporarily stop using it and switch to a range-based EA or another strategy.

Managing Spreads

• If wide spreads are an issue:
• Select an ECN account with tight spreads.
• Change the trading time (e.g., during major market openings).

Handling Economic Events

• Use an economic calendar and manually pause the EA during important events.
• Resume the EA after major data releases to avoid risk.

4.3 Optimizing EA Logic and Settings

Relaxing Filter Conditions

• If filter conditions are too strict, consider the following adjustments:
• Adjust RSI or MACD thresholds.
• Loosen the minimum volatility requirement.

Choosing the Appropriate EA

• Use a trend EA in trending markets and a range EA in ranging markets.
• For example, trend EAs that utilize moving averages or Bollinger Bands are effective.

4.4 Resolving Technical Issues

Improving the VPS Environment

• Check VPS resource usage (CPU, memory) and upgrade to a higher plan if needed.
• Switch to a more reliable VPS provider.
• Regularly monitor the connection and reconnect immediately if issues arise.

MT4/MT5 Maintenance

1. Update the platform to the latest version.
2. Remove unused indicators and EAs to streamline performance.

Fixing Connection Issues

• Ensure the internet connection is stable.
• If necessary, set up a backup line.

5. Real Case Study: Examples of EAs That Did Not Take Positions

Here we present concrete examples of actual cases where automated trading did not take positions and their solutions. By referring to these cases, you can learn how to handle similar problems when they arise.

5.1 Case 1: Example of Not Taking Positions Due to a Configuration Mistake

Issue
A trader who installed a new EA experienced a problem where no positions were taken from day one. Checking the MT4 screen, the “AutoTrading” button was disabled.

Cause

• The MT4 “AutoTrading” feature was turned off.
• The “Allow automated trading” checkbox in the EA’s property settings was unchecked.

Solution

1. Click the MT4 “AutoTrading” button to enable it (turn it green).
2. Check the “Allow automated trading” option in the EA’s property window.
3. After restarting, verify that positions are taken normally.

Takeaway
Verifying basic settings should always be done before using an EA.

5.2 Case 2: Entry Failure Due to Insufficient Volatility

Issue
A trader using a trend‑following EA faced a situation where no positions were taken for several days. Looking at the chart, the market was moving within a narrow range, with no clear trend.

Cause

• Low volatility prevented the trend‑following EA from finding entry opportunities.
• The market conditions were not suitable for the EA’s logic.

Solution

1. Stop the trend‑following EA and switch to an EA designed for ranging markets.
2. Use the ATR (Average True Range) indicator to assess market volatility.
3. When a trend reappears, restart the trend‑following EA.

Takeaway
Selecting an EA that matches the market environment is crucial.

5.3 Case 3: Halt Due to VPS Connection Issues

Issue
A trader was running an EA on a VPS, but it suddenly stopped taking positions. Upon checking, the VPS was down, and the connection to MT4 had been lost.

Cause

• Insufficient VPS resources caused the system to stop.
• Network connection was unstable.

Solution

1. Monitor VPS resources (CPU and memory) and upgrade to a higher plan if needed.
2. Switch to a more reliable VPS provider.
3. Regularly check the connection status and reconnect immediately if an issue arises.

Takeaway
Securing a stable VPS environment is key to automated trading operations.

5.4 Case 4: Example of Overly Strict EA Logic Settings

Issue
The EA used by a trader continued to take no positions in certain market conditions. Upon review, the entry logic was set extremely strict, limiting the markets that met the criteria.

Cause

• The EA’s entry conditions (RSI and MACD threshold settings) were too strict.
• The settings remained at default and did not match the trader’s market view.

Solution

1. Modify the EA settings, relaxing the RSI thresholds from “70‑30” to “60‑40”.
2. Conduct a test run to confirm that positions are taken correctly.
3. After adjusting the logic, resume operation on a live account.

Takeaway
Adjusting the EA’s settings to fit your trading style and market environment is essential.

6. Summary and Future Measures

There are various reasons why an automated trading system (EA) may not take a position, but by performing proper checks and addressing the issues, you can resolve the problem and achieve stable operation. In this article we review the content presented and organize the points that can be applied to future operations.

6.1 Review of This Article

Main Causes

1. Configuration Errors

• The automated trading feature is disabled.
• Lot size or risk settings are inappropriate.

1. Market Conditions

• Impact from insufficient volatility or widened spreads.
• Trend-following EA not suitable for ranging markets.

1. EA Logic

• Entry conditions are too strict.
• Filter settings that suppress operation under certain market conditions.

1. Technical Issues

• VPS connection problems or MT4/MT5 errors.
• Compatibility issues due to outdated software versions.

Solutions

• Review and adjust settings.
• Switch to an EA suited to the market environment or relax the logic.
• Stabilize the technical environment (optimize VPS and platform).
• Troubleshooting using real-world examples.

6.2 Points for Stable Automated Trading

Regular Settings Check

• Before running the EA, always verify that the settings are correct.
• In particular, lot size, risk tolerance, and whether the automated trading feature is enabled are important.

Market Environment Analysis

• Select the appropriate market based on the characteristics of the EA you use.
• Trend-type EAs are suitable for high‑volatility markets.
• Range‑type EAs are effective in markets where price moves within a narrow range.
• Consider manually pausing operation during economic data releases or events.

Technical Environment Setup

• If using a VPS, choose a highly reliable provider that offers a stable connection.
• Regularly update the platform and EA to keep them current.

Rapid Response to Issues

• If a problem occurs, use the MT4/MT5 “Journal” tab to check for errors.
• Contact the EA developer or the platform support team as needed.

6.3 Future Outlook and Next Steps

Testing and Deploying New EAs

• Regularly test new EAs on demo accounts to broaden your operational scope.
• Using multiple EAs allows you to diversify risk while enhancing profitability.

Continuous Learning and Improvement

• It’s important to review settings and operating methods in line with market trends and EA behavior.
• Gathering the latest trading information and deepening your knowledge enables more stable operation.

Combining Automated and Manual Trading

• Incorporating manual trades as well as automated ones lets you respond flexibly to sudden market changes.
• In situations where automated trading struggles, manage risk manually.

6.4 In Conclusion

An automated trading system is a powerful tool that can dramatically improve trading efficiency when set up and operated correctly. Even if you encounter a problem where it doesn’t take positions, stay calm, identify the cause, and take appropriate action to achieve stable operation.

We hope you apply the knowledge gained from this article and that your automated trading operations become even more successful.