Are you into forex trading?
Then you must know the importance of using expert advisors in trading. An expert advisor or EA is a type of software that can make trading decisions on behalf of a trader. When a forex EA is installed on a trading platform, it can manage all trades of the trader according to some predetermined criteria, which can be some form of programmed algorithms as per the trading strategies of the trader. First, you need to identify your trading strategy, and then it can be translated into the algorithm. Thus, a trading robot is developed that executes trades when you are not present.
By using an expert advisor, a trader gets the benefits of automated trading which escalates his trading career higher. Keep in mind that the forex market is open for 24 hours, and it is impossible for you to sit in front of your computer screen. It can make you miss out on some favorable conditions for your strategy if they occur at the wrong time. This is when the expert advisor becomes useful at it keeps the trades growing in your absence.
You can program an EA robot on your own, or you can purchase one from the market.
Many types of EA robots are available out there, such as:
1. EA for EURSD
EURSD is the most popular currency pair in the forex market, so, this expert advisor is used by many people. The reason for its popularity is its high volatility which makes it easy to earn profits from it. It has been estimated that EURUSD accounts for about one-fourth of daily trading. Due to its huge demand and high trading volume, the EURUSD has the lowest spreads in the forex market. EA robots for this currency pair are developed to ensure maximum returns for traders.
2. EA for moving averages
Moving averages is one of the most popular forex trading strategies used by most traders. Moving averages indicators smooth out the fluctuation of currency pairs within a given period. So, it is easier for them to identify trading opportunities. You can use moving averages for forex trading in many ways, which includes identifying the market trend, executing trades according to crossovers, and marking significant support, as well as resistance levels.
For instance, if you follow a strategy based on moving averages crossovers, you can produce a buy signal whenever a long-term moving average crosses over a short-term moving average. Forex robots take these advantages in many ways and use the indicators to make money. You can go for a robot that is based on a strategy combining multiple indicators relying on moving averages acting as additional criteria. It helps traders in confirming entry and exit points of a trade. With such combinations, you can reduce errors greatly by meeting multiple conditions before executing a trade.
3. EA for micro accounts
Compared to simulated forex trading conditions, it is better to rely on micro accounts for perfecting your trading skills because these accounts can be opened with a capital of less than $100 and you can trade with 0.01 micro-lots. When you are trading with a micro account, it is safe to try out your strategies under multiple trading conditions because there is no risk of incurring huge losses. Similarly, the EA robots for micro accounts allow traders to implement the robots on small trading accounts before they decide to migrate to bigger accounts.
Although, expert advisors for micro accounts and difficult to sustain and you cannot expect proper money management either, yet they are great for providing good returns to beginners. Moreover, you can check out the micro versions of any EA to see how they work. This way, it will be easy to determine whether the robot is profitable on bigger accounts.
4. EA for news trading
News trading is preferred by a lot of traders because it can generate high profits within a short period. You must know how the market reacts to major economic announcements. The market either spikes downwards or upwards whenever such announcements are made. So, obviously, it is crucial to make the best trade decisions during an economic announcement and with this objective, news trading expert advisors are programmed.
By using these robots, you can be benefitted by the high volatility during news releases which can also increase your profits earned from trades. These EAs are programmed in a way so they can accommodate price requites, enormous slippages and widened spreads during economic releases when the forex market conditions change fast. Risk management is also a very important factor for these robots, or the big moves can work against the trader.
5. EA for scalping
The scalping trading technique involves opening many positions in the forex market for short-term gains. A scalper intends to take advantage of small movements in the market and make countless trades that add up when the day ends. With that objective in mind, EAs for scalping are programmed to help traders gain from short-term market movements. These robots are very popular since most people prefer quick ways to make profits.
However, they are not sustainable in the long run, so, they can prove to be a waste of money most of the time. The forex market has a dynamic nature, so you can end up with big trading costs due to unpredictable spreads, slippages, as well as other vulnerabilities. A scalping EA is designed to respond to short-term conditions only, so, it is difficult for it to accommodate vulnerabilities. The worst part is that they are usually coded to work with one type of brokerage account only.
6. EA for binary options
Binary options trading has been rising to the top recently, but it is still new. So, you cannot expect it to be as developed as forex trading. Expert advisor robots for binary options are now available in the market, but you need to be very careful because scammers try to fool traders by taking advantage of the underdeveloped market. It is indeed not easy to find an efficient robot for binary options trading and the trader may suffer huge losses if he chooses the wrong one. So, do your own research before you go for an EA for binary options trading. You may go through reviews online or try the EA on a demo account.
So, there are many types of forex expert advisor robots that can help you in making trade entry and exit decisions automatically. Make sure you know which one is the most profitable before you purchase any of them.