Foreign exchange isn’t always as thrilling and glamorous as it looks. It can very well become frustrating and exhausting and can lead to sleepless nights fueled by bad business and trade.
In an age where technology has become the true hero and God, one is always looking for ways to make life and trading easier. And why shouldn’t that be? There is so much to do and much less time. Automated machines and software have come to our rescue in this digital age. With theinvesting.online, you have the opportunity to have all eyes everywhere.
Want to know how it works? Let’s get to the basics!
What’s the fuss about anyway?
The Forex EA is an irreplaceable automated trading system that allows you to take that breather and not miss out on great opportunities in the market. Foreign exchange can be a tricky terrain to step into, but with a Forex EA, you have an Expert Advisor to guide you and help you make better choices, so you don’t run into losses.
What does it really do?
Apart from saving precious time and directing you towards the best market values, a whole lot more! Forex EAs are your automated friends. This cutting-edge trading system can accurately read what’s happening in the market and send trading signals to alert you to the best trading opportunities.
Forex EAs can also juggle a lot. It can read innumerable variables at the same time and can also reflect diverse currency pairings at the same time! And while there is much excitement brewing now, you might also be unsure of how secure this can be. Here is why you should keep your worries at bay!
How does it work?
Unlike a Forex robot, which operates on a similar program, the Forex EA does not make decisions on its own to trade on behalf of the trader. This Forex EA is steady, acts as an expert advisor, and does just what the name suggests: gives great advice but never makes decisions for you. With the Forex EA, you have full autonomy, and the final say because it requires manual authorization by individual traders.
Here’s a more in-depth explanatory video from Mr. Patrick Ryan (the proud owner of https://forexrobotnation.com/) on what is a Forex EA, and on which Forex EA he relies the most to automate his day-to-day Forex trading:
What do you gain from a Forex EA?
As mentioned above, your precious time! When you have your Forex EA to do the needful, what you are left with is a schedule where you can balance both work and life seamlessly. Gone are the days when you’d have to monitor the market like a hawk 24×7.
It is time to go to that house warming or that family dinner, grab a few drinks, and keep faith in your all-day market watcher, your own Forex EA.
A platform that is extremely time-efficient, which executes orders as fast as it takes them! Trade setups need to be paid attention to and managed with utmost agility and speed because of a trading timeframe that can be immensely stressful.
There’s more- the Forex EA is the answer to all the prayers by beginners in foreign exchange. Those with limited or close to no knowledge of market trends may find this to be the boon of their business presence. This Expert is going to do all the math, fundamental, and technical analysis for you, leaving you with better and well-researched options to choose from.
A Forex EA can ensure that back testing does not become back-breaking for you! The EA will make it much more convenient to test a trading hypothesis or strategy based on relevant historical data so as to improve trading performance and the trader’s performance.
What are the different kinds of EAs out there?
There are four major categories you should be aware of before jumping into this:
- The News EA: this expert advisor reads into current affairs, the many events that might occur with a piece of news, and the big shifts in the market that are caused because of big press releases.
- The Breakout EA: this expert advisor is designed in a way to open a trade when the predetermined resistance and support levels experience a breakthrough in price
- The Hedge EA: this expert advisor hedges your bets and reduces or cancels out risks in one investment by enabling profits in another.
- EA Scalper: this expert advisor enables you to make mini profits as soon as they are available. This EA can open and close incalculable trades for any value, making it possible to trade anywhere from 500-600 times a day, subject to market conditions.
How does one install this?
You can find this computer program on the MetaTrader 4 and MetaTrader 5 platforms. Developed by MetaQuotes in the year 2005, this platform is most known for its forex trading and is used for trading a variety of markets ranging from foreign exchange, cryptocurrencies, and many more.
Here is some information on how to install MetaTrader on your PC. And here is something that you might find helpful to guide you on the installation process on your iOS, Mac, and Android devices.
Are there any disadvantages of a Forex EA?
As many pros as the Forex EA may exhibit, it is essential to be aware of its cons too. A Forex Expert Advisor, while it does ease your life, can also diminish the reason that you entered the market in the first place. A trader’s skill set and the ability to act on pure intuition are lost when investing in such automated software where everything is done for you.
Another low is that with the kind of system that the EA is, a smooth run-time becomes absolutely important. This might not be accessible to everyone, even for those with computers at home or at work. And if this isn’t a hurdle you think you might face, there are also many technical discrepancies and failures that you need to be conscious of.
Computers crashes, unwanted and automatic software updates (which can be long drawn), coupled with unexpected power outages, can have an adverse effect on how your Forex EA functions.
Virtual Private Servers (VPS) can come to your rescue here. But, remember, this too, like everything else, comes at a cost which might not be popular for being affordable.
All said and done, there are contingency plans for the risks and disadvantages that have been stated above. You can begin by identifying and closely analyzing what the current market trends and conditions are.
This will keep you alert and discourage you from making any brash decisions, making sure that you continue to rely on your own discretion. Another tip is to trade less when your Forex EA experiences a drawdown or a short/ long term period of losses.
We know you might be excited to go all out with your swanky MetaTrader software. And to improve its functioning and maintain its speed, you could reduce the number of windows you keep open in your MetaTrader workspace. It is very similar to how our phones and computers work- lesser tabs mean lesser encounters with unexpected shutdowns or slowing down of basic functions!
The Forex EA is, after all, built to make sure that you become a better trader, making use of both your own tact and taking a little help from advanced technology. Finally, like the very trade market, you need to tread carefully when choosing which Expert Advisor to invest in. Be sure to choose your EA as responsibly as you would when trading in fluctuating market conditions.
Want to learn how Forex EA works in detail? Here is something you might be interested in.