We’ve all heard of how much money can be potentially made through Forex trading – so how come so many people dabble in it and barely break even? The truth is that many people get too emotional or greedy while they’re trading, which affects the decisions they make. They can also get tired or irrational.
To steer clear of these problems, some people use a Forex Expert Advisor, aka an EA. But do these systems really make a difference? Keep reading to learn more!
What’s A Forex EA?
A Forex EA is an automated program which will monitor the market constantly and signal any identified trading opportunities. This monitoring is crucial as the Forex market is open for 24 hours, Monday to Friday. However, each system has different preset trading rules.
Forex EAs have fully customizable systems for personal accounts, but will require a trader’s manual authorization to approve a trade. Forex robots, on the other hand, are also like EAs because they look for trading patterns and send signals. The main difference is that they can be programmed to approve or reject trades automatically on behalf of a trader.
Forex EAs will normally assess your current account balance to see how much of it can be risked in a trade. Then it will notify you when to open a position. It can also review trades and current market conditions before deciding if there should be a take-profit, trailing stop, or stop-loss. Generally, most EAs are set to risk only 1 – 2% of your balance.
Popular Forex systems includes EA-nation, BOTCHIE EA Robot, EA-Philippines, XAURU EA Robot, GPS Forex Robot, Forex Gump, and Forex Fury. These systems always follow very strict programming rules, and can freely be found for sale online. Installing them into trading platform even with minimal tech knowledge.
The 4 Basic Types of Forex EAs
While there are many types of Forex EAs, most of them can be classified according to the functions that they perform. Here are four of the most common kinds you will find.
1. Hedge Expert Advisor
These EAs will “hedge” their bets like human traders – they’ll put two opposing positions together, to reduce the loss from one while maximizing profit from the other.
2. News Expert Advisor
These EAs monitor different price moves and news events that may affect the market, to allow traders to take advantage of sudden price volatility.
3. Breakout Expert Advisor
These EAs will analyze the market to see if a price will “break out” from predetermined support and resistance levels – if they do, they will signal to open a trade
4. Expert Advisor Scalper
These EAs are designed to get as many small profits as they can as soon as they’re available – increasing trade volume in exchange for waiting for a larger payoff.
Installation to MT4 guide
1. When you receive your EA/Robot files, Unzip or extract it if its on Zip mode.
2. Select the EX4 file and right click to “copy” the EA
3. Open MT4 (all brokers has their own MT4 application just download them)
4. Click “File” -> “Open data folder” –> “MQL” –> “Experts”
5. Right click and “paste” the EA into that “Experts” folder
6. Close your MT4 and reopen it
7. View your Navigator window and the Experts folder to see the newly installed EA
8. If you want to use the EA just open any chart/pairs then drag the EA/Robot from the navigator window.
Learn How To Trade & Use Forex EAs
Before you dabble in the Forex market, research online and learn the basics to maximize your returns! It can take a little extra work, but with some trading lessons and a few practice rounds in the market, you can learn the basics of making steady profits through Forex!