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| What an Expert Advisor Can Do For Your Forex Trading |
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| Written by Linda Galla |
| Friday, 05 September 2008 07:50 |
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The Expert Advisor is a very sophisticated trading software tool. Each one is built upon a specific set of rules, sits on your trading platform and executes your trades. Actually, it is a robot. Most forex traders fail because they fall prey to the human emotions of fear and greed. However, trading with an Expert Advisor removes these emotions so that trading can be executed on a purely logical basis. So often a trader will hold on to a trade in an effort to grab that last pip of profit even when his/her logical mind says to exit. Conversely, many times a trade is exited prematurely out of fear, leaving profits on the table. The Expert Advisor has a plan, sticks to it without regard to outside influences, and does this 24 hours a day during market hours. The Expert Advisor is constantly scanning and monitoring the market, and executes trades based upon its underlying parameters. And unlike a human, it is also capable of monitoring indicators, support and resistance levels, and a host of other factors in a variety of timeframes with lightning speed, and making immediate trading decisions. Today's market offers quite a variety of Expert Advisors in a wide range of prices. There are so many factors to consider; for example are they currency specific? Are they timeframe specific? Do they attempt to predict trends or do they follow them? What about risk management? Most I've seen recommend 2-4% risk, but there are some out there that are low risk (1-3%). Do they support stop losses or do they continue to hold a trade - even thru downturns - until a profit is achieved? There are many questions to be researched and answers to be considered before buying an Expert Advisor. It's also important to be sure the EA will run on your trading platform, that you can run multiple EA's on one account, and that it can be used with a mini account, if that is your account type. Prior to installing an EA on your trading platform, there's one more thing to think about. What happens if your computer dies, or the power in your area goes out? Remember that the EA handles your trade, and resides on your computer, but open trades are in the hands of your broker. In this case, you would have an unmanaged open trade. If you're in an area that has frequent power failures, you might want to look into opening a VPS (virtual private server) account. If you run your trading platform on a virtual desktop, you don't have to worry about power outages or crashing computers. Your trading platform will continue to run wtihout you, and it can be accessed from any location. More traders are trading with Expert Advisors today than ever before. They can be a very useful tool. If you do your homework and get all your questions answered, you should be well on your way to a profitable trading experience. About the Author: If you're interested in building wealth trading forex, please visit Forex Trading Tips to learn more about the Expert Advisor, Forex Autopilot, a proven step-by-step approach to currency trading. Kindly provided by MoneyHunter.org You are welcome to use this article on your own website, if you include the link just before this text. |
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