1. What is Forex Robot ( Expert Advisor [EA] )?
Forex robot (called expert advisor [ea]) is a software developed to trade automatically in the forex market. Most of the well-know forex robots are built to work on metatrader platform. The language used to developed the EA is MQL. Below we are going to count why to use expert advisor, what are the benefits and the drawbacks of using forex robot.
2. Benefits/drawbacks of using forex robots
Expert Advisor(EA) can trade 24 hours per day without interruption. However, if you trade manually you will need to stop and rest, to waist time for food, and any other small jobs that will make you to interrupt the trading and do some other things. But with forex robots this is not like that and all you have to make sure is to install the EA and have a stable Internet connection, and leave your PC to work, without any sleep, hibernate and any other modes.
Another important part of the EAs is that it will not take decision based on emotions, however, human can be emotional and therefore make a decision based on emotions which can cause you a lot of trouble. So, it is far better to use set of rules instead of making decision at a time.
In the Forex Market there are many successful strategies if you are going to use them with reasonable risk you can definitely make good profit. But if you want to make money fast then using expert advisor can cause you a lot of trouble.
Using Exprt Advisor is really easy. It requires to install and set couple of things such us SL/TP, or any risk, and leave it to work. A lot of EAs allow you to take manual actions however it is best to leave it to close/open trades alone. Important: It sometimes requires to make manual interractions and this is absolutely normal since the Forex Market is really dynamic and unpredictable and there is no unique strategy that can deal with any kind of market conditions and for that reason you may need to open/close trades manually with different trading lots size - this may happen very rear once or twice a year.
EAs will alow you to trade on many currency pairs, many forex robots allow you to trade on multiple pairs, but this is very hard to be achieved with manual trading, because you will miss many important signals since you will be watching one pair at a time.
The drawbackst could be that you will need to have stable Internet conneciton or use Virtual Private Server(VPS), 24 hours per day and this may require you to spend additional money.
A lot of EAs are desigend to work with tight spreads on different brokers and this may lead you to find a broker with such spreads but this will need you to spead more money for trading such as for commissions, for opening ECN accounts and so on.
Since Expert advisors become well-know in the Forex Market a lot of developers started to develope EAs which cause many of them to release one in the Forex Market without testing it enough. Therefore this cause many forex robots to fail. They may have good results for couple of months but after a time it can be very unsuccessful and you can lose your account. For that reason, while choosing forex robots you must be very careful and check all the necessary things to get EA such as:
- Is it compatible with all the brokers and account types?
- Does it work good with higher spreads? Slippage?
- How many currency pair it support?
- Do they have LIVE accounts on third part systems? And many other essentiall points.
3. Why to use forex robots?
You need to use forex robots because of few things such as:
- many of the EAs use strategy wich is already tested
- if you do not have any experience in the forex market
- if you do not have enought time you can allow forex robot to trade instead of you
- and many other factors
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