In this article we will try to explain to you what a forex expert advisor is and what it is used for. Forex Expert Advisor also called Forex Robot is an automated trading software. Forex expert advisors allow you to trade automatically on the popular Forex market (currency exchange market). Forex expert advisors are very popular among forex traders because they give them a freedom – forex expert advisors can trade 24 hours per day and 5 days a week - the forex market is open from Monday till Friday.
Forex expert advisors are very easy for installation and configuration. Most of the forex expert advisors are developed for MetaTrader 4 and MetaTrader 5 trading platforms. They are very advanced applications for trading on the Forex Market. Each terminal must be connected with a forex broker to get the latest quotes. All brokers offer MT4 and MT5 terminals pre-configured to work with their servers. You can open a demo account for free with any broker and then download one of the terminals. You can test any forex expert advisor on these demo accounts with virtual money.
The main task of a forex expert advisor is to monitor the market, to analyze multiple data from the market and forex indicators and when there is a good opportunity to buy or sell currencies or other instruments automatically. Forex expert advisors also automatically manage their own trades without need of manual human interventions. They are able to close any trade on profit or loss depending on the market situation. All of these make them extremely preferred for trading currencies.
Forex expert advisors don’t have emotions, fears and hesitation! The decision to open a trade is taken on the basis of complex calculations. This eliminates the mistakes to 0%. This is another good reason why forex expert advisors are so preferred by forex traders.
Each forex expert advisor can be configured precisely. There are settings for all important parameters. Each of these settings can be changed and adapted by the users. This way the expert advisors can be adapted to cover all users' expectations and needs. For example, such settings are:
- Money Management settings
- Taker Profit settings
- Stop Loss settings
and many other useful settings.
MT4 and MT5 terminals allow any forex expert advisor to be tested with historical data. This is extremely useful because it lets developers improve their expert advisors, to find weaknesses, to correct problems and to add functionalities. The ability to test the forex expert advisors is also useful for traders. They can easily find whether a forex expert advisor shows good results for the last 15 years or 5 years and so on.
Let's summarize the main features that a forex expert advisor should have.
- To trade completely automatically without any manual interventions.
- To be fully customisable: users must be able to change every parameter and adapt the expert advisors to any currency pair and forex instrument if it is possible.
- To have a possibility to set SL and TP and also to hide the SL and TP from the broker when needed.
- To have a money management system to set the risk correctly and to adapt the risk on the changing account balance.
- To have different protection systems such as slippage and spread protection.
These main features are an integral part of our forex expert advisors. When we develop a new expert advisor, the first thing we do is to integrate these main systems. They are very important. Naturally, depending on the trading logic of an expert advisor, we add a variety of additional systems to improve the performance of the expert advisor or facilitate users.
Here are some additional systems we add to our expert advisors:
- Dynamic SL and TP system
- News Filter system
- Grid system
- Loss Recovery system
- Trailing Stop system
- Time Management system
and many other useful systems.
When a forex expert advisor is developed professionally and has all the main features that we have listed above plus a unique working trading logic then we can say that this expert advisor is successful.
If you have any questions about this article don't hesitate to comment below. We will be happy to answer.