What is an Expert Advisor?
An expert advisor, also commonly referred to as an EA is a trading robot that automatically places traders for you. They work using mechanical rules that can be described using a series of if/then statements.
What the fuss is all about?
What’s great about an EA is that even when you are sleeping or working at the office, the expert advisor looks for trading opportunities. Traders also like the fact that an EA never decides to take trades that don’t match the desired setup 100%.
What should I know about using an Expert Advisor?
Before you start using an EA, ask yourself, can you trust a pure black box with thousands of dollar in capital? Does this idea sit well with you? If the answer is yes, then learn as much as you can about your EA. Don’t rush into things. Knowledge is power. Knowing why an EA trades and how it works can be the critical factor that convinces you to stick with a winning strategy during a drawdown. You always have the ability to turn the EA off. You are likely to do just that if you don’t know why you are losing the money.
IMPORTANT! Always read the manual that comes with your EA.
Why backtesting an EA is useless?
Expert Advisors also come with some downsides. Traders love having the ability to back test to see how the EA did in the previous market conditions. Keep in mind that past performance isn’t necessarily indicative of future results. Market conditions DO change, if an EA performed well over a specific period of time, no one can guarantee that it will perform in exactly the same way in the future. We’ve seen plenty of EAs that make money and then fall apart at some point in the future.
PC vs. VPS
When a computer runs an expert advisor, it enforces a certain amount of discipline on a trader. When the EA automatically placed trades and exits them, you have to leave your computer on in order for an EA to function. When an EA sits on your computer and if the power or the Internet has ever gone out in your home, you know that leaving the computer on 24/7 comes with risks. Traders with larger balances usually opt to use a VPS, which stands for a virtual private server. That’s a fancy way of saying that they are renting the computer power.
Placing your EA on a VPS is a great way to ensure that you are not relying on home resources, which have a high risk of going down. And you are probably not going to have an automatic diesel generator that automatically turns on whenever your home power goes out.
What Expert Advisors do you recommend?
We are neither advising nor recommending to use any Expert Advisors. We simply offer our educated clients with a vehicle to trade their funds using Expert Advisors within forex market after first considering the high level of risk involved.
How to install an Expert Advisor?
Both the installation and activation of most expert advisors are extremely easy and straight forward and yet many EA users struggle getting their EA up and running. Our short video tutorial gives an idea of how an EA is installed and activated. Tips from our tutorial will work for most EAs, but there may be exceptions, so be sure to read the manual that came with your EA.