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An Expert Advisor is a piece of forex trading software that is attached to the MetaTrader 4 platform. It can either trade automatically with no human interference or can be used to advise traders which trade they should make.
How can you Use an Expert Advisor?
Online traders use expert advisors either as a way to tackle the market in isolation or in addition to manual online trading. Once the EA is attached to the MetaTrader 4 platform it can direct all trades on your behalf based on the indicators you have programmed it with.
You can use expert advisors for a number of reasons. First of all, you can use them to execute all of your trades for you on your behalf. This means that you do not need to perform technical analysis or tackle the market yourself.
However, you can also use EAs to back test your trades and establish whether your forex trading strategy is effective. This will enable you to figure out what will make your trades more efficient and rewarding.
What are the Benefits of Expert Advisors?
Whether you are an accomplished trader or a novice to the industry, you can make use of EAs. They are easy to install and free to update.
If you are novice to the industry then EAs are ideal since they do not trade with any emotion or stress. You will not need to analyse the market in detail, or have much knowledge of the foreign exchange market.
Even for accomplished traders, expert advisors are incredibly flexible and are ideal for traders who do not have a lot of time on their hands. They are ideal for investors who already trade a specific currency pair (e.g. EUR/USD) but who do not have time to trade an alternative currency pair such as JPY/USD due to international time differences.
EAs – Assessing their Effectiveness
Despite the above assertions, many online traders proclaim that expert advisors aren’t as reliable as the human eye. They eliminate fundamental factors that are so important to forex trading and do not take into account natural, political or financial issues such as devastating weather or a terrorist attack.
For this reason, if you are going to use EAs then you should do so with caution. Always perform your own background research and make a habit of keeping an eye on regular forex news. This will enhance the quality of your expert advisor and improve your chances of making a profit.
