Forex Expert Advisor (EA) 

A Forex Expert Advisor is an automatic trading software, which trades independently in a meta trader trading platform. That means it trades with currencies autonomous. You just need a Real-Account with a Forex Broker who provides the Meta Trader Platform.

What is an Expert Advisor (Forex Software)?

An Expert Advisor (short: EA) is an autonomous computer program (automatical trading system), which is written in the MQL4 language and can be integrated in a Meta Trader platform. An Expert Advisor automatically analysis the market, calculates the strategy and places orders. Furthermore all safety instructions are made (depending on the strategy of the Expert Advisor), take / profit and stop / loss. So that you can be sure that the trading with your money is responsible.

Automated trading becomes more popular among successful traders in the last years and this trend should last for the next time. In the professional area, i.e. Hedgefunds automated systems are used since many years and ensure the trading round the clock. Powerful hardware enables for private investors to use automated systems.

Psychology of Trading with an Expert Advisor

The biggest advantage of trading using an Expert Advisor is the absence of emotions of the program. However an expert advisor is installed and operated by an emotional human being. Therefore emotions are never switched off to 100%. Many people make mistakes switching an Expert Advisor off if there are some negative orders. In the meantime the Expert Advisor would make many positive trades. After a while you switch the EA on again because you know that there were some good trades and that it is possible to make profits. Unfortunately there will be an uncomfortable market phase again and the robot makes some losing trades. In the main the EA would have made a profit if it would not have been switched off. But since in reality there were made losses because of switching off the EA, the developers of the EA will be made responsible for that.

Chances and risks with automated trading

Automated trading gives you chances but also has some risks. An automated strategy if required has to be adjusted to the market situation or accordingly the right system on right time has to be used. The right parameters have to be set. If someone doesn’t adjust an automated system to the market the loss risks can be very high.

Advantages of automated trading

With automated trading your money works for you round the clock. The biggest advantage is that an automated system is emotionless and trades strictly with its strategy.

The trading platform Meta Trader 4 is easy to use, is one of the best of the world and gives you the opportunity to integrate expert advisors.