What is an Expert Advisor in Forex?
A lot of traders in forex trading are using an Expert Advisor, but what is an Expert Advisor exactly? How can you use it?
Let’s answer that question in this article, so you can see how to benefit from it.
What is an Expert Advisor in Forex?
An Expert Advisor is a software or piece of code which is used to analyse the forex markets and can trade automatically. It can also be integrated with a Metatrader Account.
That’s why an important platform to have when using an Expert Advisor is the MT4 or MT5.
An Expert Advisor in forex is easily integrated with the Metatrader because it’s developed with the same code called MetaQuotes Language Version 4.
In forex, an Expert Advisor in can be used in 2 different ways:
- to analyse the graphics
- to trade automatically
Both of these options are useful for traders, it just depends on the selected forex trading strategy.
A forex trading strategy is a very personal choice and there are many to choose from.
So if you’re a person who prefers an automatic approach to forex trading, or if you like the analysis fully under control, then an Expert Advisor might be a good option for you.
Why are Traders Using Expert Advisors?
Every day new traders are using an Expert Advisor in their investments.
But why are Expert Advisors so popular in Forex Trading?
The answer is very simple. Just think at how much time is needed for a full technical and chart analysis. Analysis needs to be done in order to understand where and which time is the best to invest.
For novice traders, forming a proper analysis is not an easy job and it can lead to mistakes. That’s why software can help guide traders and aid them with their trading decisions.
To sum it up, below are the main reasons why it is a good idea to use an Expert Advisor in forex:
- in order to save time
- to avoid mistakes
- for a trader to have better results
Where Can I Find an Expert Advisor?
Today it is possible to find Expert Advisors for forex everywhere on the internet. There are many private companies or professional traders offering their own products.
Even on social media platforms like Facebook or Instagram, it is possible to get in touch with some EA providers.
What’s important is to choose the right product from the right people. Usually, if a company or a single forex trader is clear and transparent about its product, they should publish the results or give a trial period.
If they don’t offer a trial period or can provide some form of results then we’d recommend that you don’t use them. This is because the product is probably not very good or worth the money.
How Much does an Expert Advisor Cost?
Expert Advisors in forex have different ranges of prices. There are also various purchase methods available.
It’s possible to buy an Expert Advisor for forex through the following plans:
- by monthly payments
- by single initial payment
Regarding the price, it depends on the EA performance, for instance, does it offer only chart analysis or is the automatic trade is implemented too? It also depends on how technical the analysis provided is.
Depending on these factors it’s possible to find an EA costing more than $1000, or from only $99. The prices vary a lot.
How to Install an Expert Advisor With a Trading Account
The first thing to have before using an Expert Advisor in Forex is to own a Metatrader real trading account.
As we’ve mentioned briefly, every Expert Advisor is developed in the same MT4 or MT5 language.
The installation process is very easy and can be completed in a few steps.
Finally the integration is not so difficult. Here are the steps to follow:
- Create or download an EA and save it on your computer.
- Select and copy the EA file you want to install.
- Look for the MetaTrader4 folder in the C: drive.
- Paste the files into the ‘Experts’ folder. A pop-up requesting admin permission may appear, if so just click Continue.
- Launch your MT4 platform.
- Look for the Expert Advisors section under the Navigator panel on the left side of the platform.
- Click on the ‘Plus‘ sign and the available Expert Advisors should be listed there.
- Click on the EA you want to install and drag it onto one of the charts on your platform.
- A pop-up box will appear showing the settings of your EA.
- Make sure that all the settings and alerts are correct before clicking OK.
Conclusion
To conclude, there are many benefits to using an EA software in forex, mainly that it can trade on your
behalf even if you’re at work or sleeping.
The software, unlike a human, can also carry out much more analysis than any person could.
Plus there is the benefit that Expert Advisor software doesn’t make trades based on emotions like a human would. The trades are based purely on chart analysis.
Humans are emotional beings, and trading is best done rationally. Emotions can have a negative impact on trading, so using an Expert Advisor can resolve this.
It’s important to remember that with an EA it’s harder to tell whether the software will help you achieve actual profits or not.
So you must make your own mind up if the software is something that will suit your trading needs or not, as well as following some of the tips in this article.
To find the best Expert Advisor for you, do your research and check to see whether it can connect to your platform.
Author of this article and founder of Tradingonlineguide.com
My aim is to help you increase your trading knowledge with helpful content. I come from an economic background and have a strong passion for forex trading. With more than 6 years in the online trading world, I want to share my financial knowledge so that anyone can develop their investment skills.
In my spare time I enjoy cooking and travelling.
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