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What is Forex Expert Advisor
Written by: PaxForex analytics dept - Wednesday, 11 January 2017 0 comments
The forex expert advisor is a program capable of performing in the terminal any action following the instructions of a trader, without his direct involvement. All tasks are performed automatically or mechanically. This program is sending applications to a broker without any intervention on the part of the trader. You install a profit forex expert advisor to the existing forex online trading platform, which is connected to the server broker, adjust all the settings, and the advisor will begin trading according to a preset strategy.
A EA or forex robot on the other hand, can be programmed to watch market movements without the need to rest or even take pee breaks. It simply follows a set of rules based on technical indicators or price action and can execute trades automatically. For a lot of forex traders who’d like to profit from market movements during a particular trading session but are stuck in a different time zone, using an expert advisor means that they don’t need to worry about trading sleep for pips.
Thus, the quality of work of any trading robot depends on the professionalism of its author. Regarding the principles of forex expert advisor, it is based on a specific algorithm. As the robot is created by the man the standard scheme of trading which consists of the
following steps is in the basis of it: Analysis of the market. In order to fulfill it the technical indicators integrated to the advisor are used. They analyze the market situation and give the signals to open positions. Opening the orders is performed according to the set algorithm.
From a psychological point of view, the forex expert advisor is irreplaceable. A trader decreases the responsibility for decision-making, and the trades become less stressful. The trader does not need to have an in-depth knowledge of technical and fundamental analysis, since all the calculations are already included in the program. Besides, the advisor is able to handle the trading signals even when the trader is absent from the workplace.
The disadvantage of trading robots is that the errors occasionally take place in their work. It is very hard to find such forex advisor which would be able to work without high financial risks at least for a year. It is worth to understand that the advisor should be set according to your currency pair, deposit and trading period. You can find lots of advisors on the Internet, but getting a profitable one is very difficult, and using every single one is exhausting and may result in depleting your deposit. Many advisors demonstrate excellent results when tested on one currency pair, but perform poorly on others.