The forex expert advisors are programs that are capable of performing the tasks of a forex trader without his or her direct involvement. As all the tasks are done mechanically or automatically, the advisors are also known as experts or mechanical trading systems (MTS). This program has the ability to send applications to the brokers without any interference on the part of the trader. In order to make the advisor trade according to a preset strategy, you have to install a forex expert advisor and add it to the existing forex online trading platform. Then you have to connect it to the server broker and adjust all the settings.
The forex expert advisors are actually trading robots that are irreplaceable from a psychological point of view. Of course, this trading strategy requires a lot of experience, research and knowledge. So make sure that you do your homework before step into the forex market and run an expert advisor. Some benefits of forex expert advisors are discussed below:
It trades on your behalf while you sleep
It is known to all that the forex market is open 24 hours a day and 5 days a week. So it is quite difficult for humans to stay up all day and night the whole week just to trade in the forex market. On the other hand, forex expert advisors or robots can be programmed so that they can work day and night. They don’t even have the need to take breaks or rest. There is a set of rules based on price action or technical indicators that is followed by the forex expert advisors. This helps them to execute the trades automatically. There are many forex traders who are stuck in a different time zone and fail to make profit from market movements during a particular trading session. If they use expert advisors, they don’t have to worry about trading, as the expert advisors will trade on their behalf.
Control of emotions
If you are forex trader, you have definitely faced a situation where you have struggled with two different feelings at the same time- fear of loss and greed. Your decision making can sometimes be clouded by your emotions. This can lead even an experienced trader to drift from a tried and tested strategy. The absence of any emotional components is what makes the forex expert advisors completely different from humans. They don’t know what anger, greed or fear are. They are designed in such a way that they always stick to the commands of the system and take valid trade signals. They don’t get disappointed, if they make losses; or don’t get overwhelmed with joy, if they make profits.
The ease of backtesting is another benefit of having forex expert advisors. You can easily conduct backtests using these expert advisors. This is especially true in case of MetaTrader 4 platform. Backtesting enables you to see how a system has worked over years, with just a few clicks.
Compared to humans, modern technologies work faster. Humans may take few seconds or more for digesting the market information and then figuring out how to react to price movements. On the contrary, forex expert advisors or robots have the ability to react instantly and then execute a trade faster than you could imagine. If you are a day trader, this can be advantageous for you, as you can make profits from quick price moves that are based on 5 minutes or 1 minute charts.
Several currency pairs can be monitored simultaneously by forex expert advisors. New horizons in trading are opened up by this. Traders don’t need to sit in front of the monitor for long hours and switch from one currency to another.
These are indispensable benefits to adding an Expert Advisor to your arsenal. There are 3 ways of doing so:
- Hire someone to create an Expert Advisor or Create one yourself
- Use a winning professional trader who sells access to theirs
Have a look and see what will work best for your trading and your business.