A feature of the best expert advisors is that they produce enviable but reasonable results when put to proper use. Right from the inception of automated trading, expert advisors have been talked about every now and then; how they are really good for making money while the trader sleeps, how they can make mind blowing profits from a teeny tiny startup capital, how they can function in every market environment, etc – not all these claims are true, but one can really make money from these expert advisors all things being equal.
FEATURES OF THE BEST EXPERT ADVISORS
EAs can be created only for metatrader platform users. Users of the metatrader platforms are at liberty to customize their platform to suit their specifications. This means that anyone that has the basic know-how can design an EA and trade with it on the metatrader platform. With this level of liberty comes the issue of quality. To avoid this issue, one has to understand what makes an EA stand out among the rest. Here are some tips
The best expert advisors are created by renowned forex traders and programmers who understand the forex market in depth. Knowing the profile of the designer can make all the difference.
The best expert advisors have good histories. If they are good enough, they are bound to generate good reviews from users.
Most substandard EAs do not stay for long in the market before they become obsolete. This is not the case with the best expert advisors. They stand the test of time and meets expectations equally.
They can also run back tests base on historical data. With this feature, a trader can apply it to past trade to see what results it would have produced if it was used for the trade.
FOUR TYPES OF EXPERT ADVISORS
One problem a lot of traders have with expert advisors is that they do not know where to use it. This can be blamed on the advertisers who falsely claim that their EA thrives in every market condition. There are four types of expert advisors all of which can only function in specific market conditions. They are
Expert advisor scalper for forex scalping
Forex news expert advisor for trading the forex news
Breakout expert advisor for trading breakouts in the forex market
Hedge expert advisors for hedging
These expert advisors function under different market conditions, and will not do well if they are swapped for a different market condition.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.