A Forex Robot or an Expert Advisor or a Forex EA is a piece of software that works as a fully Automated Forex Trading System and executes trades on both sides of the market 24/5 per week. The most popular forex robots are offered via the MetaTrader-4 or MT4 platform.
Forex robots provide an exciting way of earning profits in the online Forex market. Forex robots will save you loads of time analyzing the markets or sitting in front of your computer screen to monitor the markets. Most investors understand that trading is very time consuming and could lead to stress, which could magnify losses instead of profits. Current Automatic trading technologies have made trading easier, less risky, and increased the chances of better performances.
Basically, an expert advisor for MetaTrader 4 works by coding predetermined strategies or rules for making trade decisions. The rules are programmed on an expert advisor (robot), which it uses to enter and exit trades fully automated. Robots are capable of making trade decisions in a way that humans can’t. Robots can effectively scan the markets looking for trade opportunities with high levels of accuracy. For example, if you have a successful trading strategy that relies on indicators, candlestick patterns, support and resistance levels, you can code it in a robot and just sit back and allow the algorithm to do the work for you. Furthermore, if a robot is programmed to make a sell order whenever a currency pair reaches a resistance level, it will obey those instructions always. Time saving and reducing human errors are the main reasons why investors actually use robots.
Advantages of forex robots
- Trades the Forex Market in multiple currency pairs
- Trades the Forex Market 24/5 (day and night)
- Forex robots do not make order entry errors
- Most EAs are coming with money management features
- Forex robots do not get tired
- Eliminates Human Emotions such as fear and greed
- Can analyzes many charts simultaneously
- Forex robots are very easy to use
- May work on a Demo Account for testing before used for real trading in a Live Account
- Can be back-tested (testing historic performance) on MetaTrader-4 or other Forex Trading PlatformForex Trading With Robots