Just as there are different strategies developed by different traders to trade the forex market, there are also different EAs designed for different purposes. Basically, an expert advisor (EA) will convert a manual trading system to an auto one, saving traders the time and other issues that may occur as a result of trading with a manual system. It is only compatible with the metatrader platforms, and traders with no programming skills can create an EA. In this piece, we will be focused on EAs designed to trade forex news; forex news traders EA.
WHAT IS A FOREX NEWS TRADER EA?
It is simply a trading robot that trades forex news. Trading forex news have to do with keeping a tab on factors that affect the market and taking advantage of whatever changes they make in the currency exchange market. Factors like rate of employment, capital market, international trades, politics, etc, can affect the forex market. Do you have to keep your eyes peeled and on the television all the time waiting for such news release? No. While there is nothing wrong with watching the news in order to gain an insight on what is happening around, it is also not a bad idea to have an economic calendar with all the necessary economic information and their due dates.
It is common practice in the forex market to use economic calendars to track occurrences of market moving events. It is important to note at this point that not all traders like to trade the news. Some traders choose to avoid trading the news for the same reason many other trade it; volatility. Whatever be the case, every trader needs the economic calendar to be able to build a trading strategy that can direct them appropriately. The forex news EA is based on this economic calendar to operate.
FEATURES OF THE FOREX NEWS TRADER EA
Some features of the forex news trader EA are
1. The forex news EA is designed to automatically download economic calendars necessary. They work according to the programmed instructions or algorithms to filter the news events by country and impact levels. By doing so, the trader only gets what is needed.
2. It can trade multi currency pairs at the same time. This is one of the most recent developments of the EA.
3. Asides filtering news events according to countries of interest and level of impact, the news events downloaded are also trimmed down to specified ones like
- US nonfarm payroll
- Unemployment rate
- Consumer Product Inflation
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.