In Forex trading, there are software and important features that help in the success of each trader.
Expert Advisor (EA) is one of those tools that execute trades automatically based on the set of instructions programmed in the software.
This software is mostly found in MetaTrader 4 and MetaTrader 5 trading platforms.
You can either use an existing EA or create one based on your preferred trading parameters.
EAs are written and customized through the programming language used in MT4 and MT5 – the MetaQuotes Language (MQL).
The programming language and the trading platform are developed by MetaQuotes Software Corp.
Advantages of Expert Advisor
One of the advantages of trading in the Forex market is that it is open for 24 hours.
But this advantage can also turn into a disadvantage if you fail to capture good trading opportunities in the market.
No matter how exciting these trades can be, you are a human and you need to rest and sleep to prepare yourself for the next trading day.
So, what happens when a favorable opportunity comes along and you are away from your computer?
That’s when you can use the Expert Advisor which is also called a Forex robot or trading robot.
This software trades in your place so you can maximize your trading opportunities even when you are asleep, working on your corporate job, or just away from the computer.
Moreover, any emotional attachments are removed when you use this trading robot. Your fear or greed won’t interrupt your trades.
The EA will be the one to carry out trades in your place following the instructions that you have previously set.
For traders who consider Forex trading as their primary source of income, the use of EA can help reduce the stress that you feel as you aim to be the best in your field.
Stressful trading is emotionally as well as mentally exhausting. It is also very time consuming and can pin you on your seats for the entire day.
Disadvantages of Expert Advisor
Just like any other software in trading, EA also has its own disadvantages.
One of the most troublesome things here is when the EA fails to respond on the real-time news, which results in ignoring the important fundamental reasons why you want to make a trade or why you shouldn’t.
If you personally monitor this news, you can relieve yourself from these trading mistakes. But of course, that will be too time-consuming and can take up all the time you have in a day.
Right after the main menu, you will see various kinds of built-in tools that can be replaced with the commands and functions that are found in the main menu.
As for the toolbars, they are highly customizable, which allows the change of chart timeframes, candle chart, line chart, bar chart and so much more.
You are going to see the key features of the trading platform. You will also notice how simple the user-interface is, perfect for beginner traders
Moreover, even though a trading robot can shoulder more variables all at once more than what you can do, EA can only act based on the things you have programmed them to do.
Other variables that fall outside these limitations will not get covered, unfortunately. There are also times wherein big trading errors can happen and you cannot avoid them.
Whether you utilize the EA available in the MetaTrader 5 trading platform or use the one you personally created, you must test it first over some time frames using a demo account.
This should make sure that the trading robot will perform well just as how you expect it to be.