What Is A Forex Expert Advisor?
For Forex traders who are new to Forex trading who may not have heard of Forex Expert Advisor or do not have a good idea what is a Forex expert advisor, or EA in short or also commonly known as Forex robot.
Here is an explanation on what is a Forex expert advisor, its role and its usefulness in helping you with your forex trading.
Forex Expert Advisor Explained
A Forex expert advisor or EA as they are call in short and also commonly refer to as Forex robot or trading robot, is a
program that sits on your MT4 or MT5 platform or VPS (virtual private server) that analyze the forex market based on a particular trading strategy.
The EA replaces you sitting in front of the computer waiting for the right moment to enter a trade, the EA will take over that job, entering the buy or sell trade when all conditions are met.
There are fully auto Forex expert advisor and semi auto expert advisor. Depending on individual preference, some prefer to use semi-auto version, waiting for signal from the EA or custom indicators to give them a signal to enter a trade and the trader will then decide to enter or not enter the trade base on personal judgement or emotion or whatever rules at the moment to decide what to do next.
If the Forex robot sits on your computer, you have to make sure that your computer is on while its trading has an internet connection.
Whereas for those who have their EA sitting on a VPS, there isn’t a need to turn their own computer since the EA sits on the VPS and it’s on all the time.
The Forex robot can monitor various currency pair all at the same time which I’m pretty sure you won’t be able to. It
only has to be placed in the chart of the currency which you would like to trade and it will take care of the trading part.
There are some EA that is able to trade all currency pairs without you even having to load it into any charts, you just have to make sure that the “expert advisor” function on your MT4 or MT5 platform is turned ‘on’.
The EA basically replaces you. It monitors the market 24/5 and do the job for you without you having to be present in front of your computer. However, having said that, my recommendations is that you still check on it once in awhile to make sure that everything is in order.
I have yet to come across a fully auto Forex expert advisor that can be left to trade on its own without some human intervention from time to time. Semi-auto is my preference and although it has its disadvantages, you have better control on when you want to activate it but doesn’t necessarily mean you have better control of your emotions at that point in time 😀
Clear About The Function Of A Forex Expert Advisor?
I hope the explanation of what is a Forex expert advisor gives you an idea of its functionality and usefulness in
helping you with your Forex trading. There are plenty free and paid version to be found on the internet when you type the word “Forex expert advisor”, “Forex EA” or “Forex Robot” into your search engine.
Before you jump in and start using any EA straight away, I must forewarn you that not all Forex expert advisor are created equal and there is more than meets the eye. We trade using mostly EAs and I will be writing more about Forex expert advisor as I go along so stay tuned.