In the world of foreign exchange (Forex) trading, an expert advisor (EA) is a piece of software that tells you when to make trades or even automatically initiates and executes trades according to preprogrammed instructions.
Every Expert Advisor is based on preset rules, but EAs can differ in the rules they follow in order to trade. As with any automated software, they reduce the chance of making emotional and irrational trading decisions, which commonly affects novices or inexperienced Forex traders. A Forex Expert Advisor follows a very strict and consecutive plan, free from any human intervention.
Expert advisors are most often deployed on the MetaTrader 4 or 5 forex trading platforms. This company will work with MetaTrader 4 and EAs can be used on said platform. You can use an existing EA or create your own based on the trading parameters you like. These EAs are written in a programming language called MetaQuotes Language (MQL). Both MetaTrader and MQL were developed by MetaQuotes Software Corp.
Advantages of an EA
- Forex markets are open somewhere in the world 24 hours a day/seven days a week. Using an expert advisor, or a similar trading tool called a forex robot, to carry out trades in your absence enables you to take advantage of trading opportunities while you're working, asleep, or otherwise occupied.
- Using an EA also removes the emotional factor from your trading. Your fear or greed won't play a role in whether you choose or decline to respond to trading signals; the EA will carry out trades based on your instructions without considering how it would spend a profit or weather a loss.
- If forex trading is your main income generator, using an EA can reduce your stress level and make a potentially emotionally and mentally exhausting and very time-consuming enterprise a lot less so.
- On a related note, an EA or robot can consider far more variables at the same time than you could hope to wrap your head around. And it can consider those variables for several different currency pairs at the same time. You can not, no matter how intelligent you are.