A Forex Expert Advisor, also known as an EA, is a mechanical trading system (MTS) used for Forex trading. Expert Advisors allow for automatic trading to take place, freeing the trader from continuously having to watch the market. Making a profit while trading in the foreign exchange market is determined by a large number of human factors, such as emotions, knowledge, and even the psychology of the trader. Automated programs such as Expert Advisors remove a great deal of these factors from the equation and enable the trader to make better informed decisions by evaluating multiple factors at once.
An Expert Advisor can inform clients about the possibility of striking bargain deals and EAs are used by beginners and experienced traders alike. Regardless of the level of experience, Expert Advisors can be used to assist traders by allowing them to work in different markets and under different conditions.
Expert Advisors are designed in the MetaQuotes Language 4 (MQL 4), which is a built-in language for programming trading strategies. This language allows for EAs to be programmed to trade accounts automatically by managing trading operations from directly sending orders to the broker’s server, to placing and adjusting pending orders, or placing trailing stops.
There are hundreds of different and unique EAs in the market, all functioning in accordance with different rules. The common factor they all share however, is the adherence to a strict trading strategy and the consistent way of evaluating all parameters at the same time, often more successfully than any human could. Nonetheless, it is important to remember that an Expert Advisor is a trading robot and should be used with caution. It is essential to understand how it operates, the implications it will have on your trading and strategy, and have a trustful source and point of contact for the EA. Online forex broker Maps IG allows the use of all types of Expert Advisor on its MT4 trading platform and all types of trading strategies.
TYPES OF EXPERT ADVISORS AVAILABLE IN THE MARKET
- News Expert Advisor
This is a type of hedging Expert Advisor. The News EA is designed to take advantage of news updates and events and the large price shifts that can occur during the financial news releases.
- Breakout Expert Advisor
Designed to open a trade when the price breaks through predefined support and resistance levels.
- Scalper Expert Advisor
This attempts to repeatedly secure small profits as soon as the opportunity arises.