Do Forex Expert Advisors Work?

Do you know what forex Expert Advisors (EAs) are?

How do they work, and why do traders need them?

To start with, Forex Expert Advisors are automated robots programmed to detect trade entry and exit opportunities based on a certain set of parameters. This is a mechanical trading system that automatically manages all trading operations.  They are also known as “forex trading robots”, “EA”s, “MT-4 EA”s, or “automated forex trading software”.

Forex expert advisors are built not only to automate trading operations, but also to generate profits while doing so. Even with this intention, the types of forex expert advisors vary largely. News, breakout, hedge, scalper, and adaptive expert advisors are among the types available in the market. Some are designed to trade at certain times only while others may be made such that they trade round-the-clock. There are even custom-made EAs that expert traders have asked programmers to automate their tried-and-tested manual trading systems.

How do these forex expert advisors work?

EAs use certain algorithms or technical indicators to assess the foreign exchange market’s conditions and take appropriate action, as dictated in its source code.

A basic MT-4 expert advisor is made up of three parts:  a startup function, a main function and a cleanup function. Upon startup, the expert advisor will run through the startup function once. It will also run through the cleanup function once at the end. Prior to closing, the EA will run through a cycle of its main function with every incoming tick. This goes on for as long as the EA is attached to a trading chart and is active. However, a new cycle will not start for a new tick if the EA is still processing a previous cycle.

So, do expert advisors really work?

Some traders are critical about it while some welcome the extra hand. Certain traders believe manual trading is better because the forex market is too complicated and unpredictable to be automated. Others see EAs as beneficial in the areas of decision-making and income generation.  Because every forex expert advisor has a trading plan with which it adheres to indefinitely, it has the ability to decide without being influenced by external human factors, such as stress and emotions.

EAs are also capable of making trading decisions while taking into consideration the different factors that influence prices, which make them valuable trading tools. Also, EAs bring in additional income while the trader sits back and relaxes. EAs can run on autopilot and they will continue to trade in the same patterns that they have been designed to trade with.

Given the number of EAs available in the market today, you should be a smart shopper. Do research on what you need for your trading style. Then, look for reputable sellers, compare, send queries, and ask them to provide live forward test statements. Once you have your choices, check the software and test run the system.

Finally, get expert advice. And from here on, enjoy trading with the automated profits!