EA Forex robot is one of the most popular buzzwords in the world of automated Forex trading using MetaTrader.
Automated trading has rapidly become a go-to method of trading for most Forex traders. Every experienced trader aims to finds that sweet spot of balance between manual skill and automated expertise.
Automatic trading platforms also relieve users from the constant stress of having to make every deal. With one of these, you can just set the rules and check out.
MetaTrader platform is a fine example of a trading platform that is massively popular and used by millions. The reason for its acceptance in the trading community lies in the amount of flexibility and convenience it provides. And the most flexible aspect of the platform is the EA Forex robot.
What is EA in MetaTrader?
An expert Advisor is an add-on software that runs on MetaTrader and serves the function of advising users. Written in a programming language called MetaQuotes, it can take any information available on the platform and segment it to give tangible trading direction.
Very simply, it can offer either advice on which trade to make or be automated to make the trade itself.
What makes the Forex Robot EA trader so popular?
Typically, the Expert Advisor uses simple binary yes/no questions to decide whether to get into a trade or not. This not only makes it simple to use but it also gives users the chance to pass on the decision making the ability to a piece of software. All they need to do is set the loss taking and some other essential criteria.
You can choose to input a trading strategy of your choice into the platform based on which Expert Advisor will trigger trades.
An example of a common EA strategy on MT4
The moving average crossover method is one of the most common EA strategies employed by users. Here, bullish market conditions are indicated whenever a fast moving average crosses over a slow moving one. Contrastingly, a fast moving average crossing below a slow-moving one indicates bearish conditions.
‘Bullish’ is just FX nomenclature for when you should be going long on a currency pair, i.e. when things are looking on the up. ‘Bearish’ is when the market dictates that going short on the currency pair.
On the MT4 platform along with a Forex trading ea robot add-on, trades see execution whenever 2 moving averages cross each other.
However, the platform is able to much more including controlling the amount of capital a user puts into the market. Every expert advisor out there comes with a risk level setting, to put a cap on damage control.
Some of the most crucial functions of Expert Advisor are as follows:
Entering trades automatically
Providing accurate and market-specific advice
Exiting trades with respect to risk value
Ultimately, no matter which EA Forex robot you use, the prospects of successful scalping are going to improve manifold. There are plenty of guides out there that will help you understand the fundamentals of successful MT4 trading.
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.