Forex Trading Expert Advisors - What Are They?
Forex trading expert advisors are custom written mathematical algorithms using programming languages (such as MQL4 for Metatrader) to trade forex markets automatically based on preset criteria. Metatrader is by far the most well-known and commonly used platform for the private trader. In layman's terms, expert advisors are forex robots, trading currency markets automatically.
The programming language is used to create these expert advisors to either trade the market automatically or to monitor the market for specified trading signals that are then used to trade manually. The robots generally monitor well-known indicators or a combination thereof in order to trigger potential trading opportunities.
Ok - that was a bit technical! Let's take a breather!
You really do not have to be bothered too much with all the technical "back-end" workings of forex trading expert advisors. What is more important is to understand how to choose the best robot to maximise your profits.
Very simple robots using only a few basic indicators can assist you with understanding the basic workings of using expert advisors as part of your trading strategy. More advanced robots, which are promoted by well-known creators, provide a vastly different perspective on forex trading as these robots can essentially completely automate all your trading efforts.
That's correct - in theory, you can actually leave these more advanced robots on autopilot to trade currency pairs with virtually no manual intervention. This is a very viable option for the novice to "medium-experience" trader, especially where you have time constraints due to family or other work commitments.
The most important thing is to choose correctly. Choose a forex robot that has been thoroughly tested and has a good reputation. You will easily gauge from browsing the internet which robots are worthwhile investigating and which ones are not. I have found that free robots can generally not be recommended.
But above all, gain knowledge about forex trading before committing hard-earned money. Make sure you understand the risks and view forex trading as a serious business just as you would any other - even if you are only a part-time trader.
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ABOUT THE AUTHOR
I am a Chartered Accountant, forex and stock market trader, business owner and property investor. Finding profitable forex trading systems and strategies to benefit the average person on the street is my passion as forex trading is a very accessible means of earning additional income. I endeavour to provide good, honest and value-add articles and posts on forex trading in general.