Forex Expert Advisor – What is a Forex EA?

From the beginning of time man has sought to use automation to simplify his life. The financial markets and Wall Street have been major beneficiaries of automation. The most high profile market in the world right know is overflowing with man made robots that are used to do the trading that men used to do. The market I am speaking of is the Forex Market. The Forex traders have created Forex robots or Expert Advisors (EA) that they use to trade currency pairs on autopilot. Forex Expert Advisors such as Fapturbo, Forex Megadroid, Forex Ambush, Forex Godfather and many others saturate the market and promise to make money for its users. Before you go and buy one of these expert advisors it would be beneficial to learn al little about what a Forex Expert Advisor is.

A Forex Expert Advisor is automated Forex trading software. It is a strictly mechanical trading system designed to trade Forex currency pairs automatically without any human intervention. These EA’s are written in a programming language called MQL-4 and are mostly used on what is called MetaTrader-4 platform. This platform enables the EA’s to run and trade currency pairs. These robots can be programmed to provide alerts when a hot trade is coming up or they can be programmed to fully trade and mange all of your trading activities and send orders to your broker. It can even be programmed to adjust stops and to take profits. Awesome right!

Expert Advisors are programmed using rules that tell the EA when to enter and exit the market. Expert Advisors remove emotions from trading and force traders to stick to the trading system. The major downfall of many new traders is trading on emotion and not following the system. It is this consistency that makes EA’s very useful and attractive to Forex traders. Forex is a volatile market with many highs and lows and without a solid system you will be out of cash before you know it. EA’s can be programmed to analyze many parameters simultaneously, which is something that is almost impossible for a human.

Technical indicators are the lifeblood of EA’s. EA’s are programmed to evaluate technical indicators such as moving averages, Bollinger Bands, Fibonacci, etc. and use this information to enter trades, exit trades, set stops and take profits. It is also possible to create a custom indicator to utilize. Many experienced traders hire programmers to automate their systems so they do not have to sit in front of a computer all day. Automate and make profit is the goal of all expert advisors.