Imagine you have a profitable strategy and make money trading forex or any financial markets, but you have to stare at your screen without missing any important information or moves on the market. This can take hours from your time and could lead to over-trading or opening wrong trades out of boredom. To face this challenge, you can use robots who can do all the trading tasks for you and give you more free time to spend with family and friends. This could be very tempting and in this article, I am going to provide all the necessary information for you to get into forex EA specifics.
There are various robots available online and some of them are built into MetaTrader 5, you can even write one for yourself or buy one online. They automatically scan the market and make decisions to buy or sell. These trading robots are called Expert Advisors. Forex expert advisors or shortly EAs are very popular among forex traders. Imagine you can run the program with your favorite trading strategy written and it executes your strategy automatically. How’s that? Seems very intriguing. Building EA is not as hard as you may think. There are websites that enable traders who don’t know how to program to create EA easily. With simple drag-and-drop tools, anyone can create their first robot. There are plenty of indicators available to meet your needs. It is easier to test and buy already profitable Ea developed by professionals online.
There are a few ways to start using forex EAs, first let’s understand how exactly EAs work behind the scenes and then where can we buy, or create one:
Expert advisors are algorithmic trading software that use complex mathematical formulas to analyze market data and make decisions to create alerts or even trade the markets. EAs come in different flavors and some are just using indicators to create alerts and send them to email or just notify traders right away. Imagine you want to know when the 9-period moving average crosses above the 21-moving average. You can stare at your screen for hours or you can set up a simple alert to notify you when this happens. But if you want. You can use your FX broker’s EA to alert you when a crossover happens. EAs not only make alerts but they can be programmed or assembled to trade the market automatically. Every EA takes in market Bid and Ask prices data and then uses indicators or mathematical formulas to conduct analysis and if all terms are met it will make the decision accordingly to buy, sell or send an alert. EAs can place any type of order on the market. EAs can also paint information on the chart about all the important data about your trading account, or trading instrument.
The pros and cons of buying EAs from online marketplaces
The easiest way to avoid programming EA yourself is to buy them from professionals. There is a best expert advisor for mt5 but finding it is a challenging task. There are thousands of EAs available and it is more than likely that you can find one that suits your needs. The greatest advantage of EAs is that you can demo trade and backtest them before paying money.
The main advantage of this method is that you don’t need the knowledge of programming, it requires you just to select indicators and specify when to buy or sell. After completing the robot websites automatically generate and compile code. You can then download the EA and test it on MetaTrader 5 platform from the strategy tester feature (CTRL + R).
The obvious cons of this approach are that you can not use custom indicators. The customization is limited and you have to use templates. If the indicators used in your strategy are available on these websites then it shouldn’t be an issue. Try to find more free online tools and you will succeed.
This is for more advanced users. Programming EAs is no different from building a website or software. It requires a general understanding of programming and computer science. So, in order to program your robot on your own you have to know C or C++ or have an experience with python programming languages. Meta Trader 5 uses MQL5 language to write robots. It is a C/C++ library and enables you to program trading robots or any custom indicators.
Programmers who are not familiar with forex trading can write fantastic robots but can struggle to make money. It takes practice and aid from a professional trader to become a successful EA developer. There are plenty of sources available online including youtube tutorials and reading materials from the web are of great use.