If you are a forex trader, then you must have come across different forex EAs, and might have applied a bunch of them to your trades. Also, you must have noticed that there is more to a forex EA that they are advertised to be seeing that some investors make good profits for making use of an EA, while some do not make much. As a matter of fact, there are a lot of negative reviews about a lot of EAs, but that did not stop developers from developing more EAs, not did it stop marketers from aggressively advertising them in the forex market. That means there really must be something about these EAs that is not well known to the common trader out there. What is a forex EA, and why should you download one to trade with.
A FOREX EA:
EA in forex EA stands for Expert Adviser. It is a metatrader platform friendly software application developed to help traders automatically generate trading signals from the forex market, and can even go ahead to perform auto trades on behalf of the trader. This is to say that it is a trading robot. Its basic function is to generate signals, but if given the instruction to do so, a forex EA can generate signals and also trade with those signals without any human input needed during the trade. Also, from the definition, it was stated that a forex EA is metatrader platform friendly; meaning that it only works on metatrader currency trading platforms.
WARNING ABOUT FOREX EA
A lot of juicy things have been said about forex robots, but traders should be properly advised before applying such sophisticated trading tools to their trades. It is not as straight forward as the advertisers make it look like. There are a lot of things to put into considerations before trading with it. For instance
The spread as offered by the brokers
How many currency pairs it was designed for
The market environments on which they can thrive
All these and more must be considered. However, there are some things about a forex EA that makes it indisputable in the forex market.
WHY YOU SHOULD DOWNLOAD A FOREX EA
Here are some reasons you should download a forex EA
It can trade for you all day round with neither food nor rest.
It gives you tie for other things rather than staring at the computer screen all day long
Forex EAs do not have that human nature that permits bias, greed, fear, or ego; and as such sticks to the strategy from beginning to end.
Most forex EAs can be backtested as well as optimized on quantifiable data.
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.