Many of us will often complain about how Forex trading takes up all of our time and we simply don’t have any free time to spend with family and friends. Well, there are many ways to overcome this – one of the most popular ways being that you can develop an Expert Advisor.
It’s not easy to get a Forex EA that really works developed, however, throughout this article we’ll be going through the details of what an EA actually is and what kind of benefits you can expect if you decide to purchase one.
What Exactly Is an Expert Advisor?
An Expert Advisor (also known as an EA) is one of the most effective tools that can be utilized in order to save up a lot of the trader’s time. An EA will effectively trade for you under certain rules and conditions, for example you might want your trade to be opened once one of your indicators hits a certain level – you can program your EA to do this for you so you don’t have to sit at the screen waiting for the perfect setup.
There are a wide range of advantages and disadvantages and so it’s important to take all of these into consideration before you put your capital at risk. A Forex EA that really works has a lot of potential and depending on how it is used could either lose every penny in your trading account or could make you a millionaire with only minimal effort on your part.
There are an abundance of advantages to using a Forex EA that really works, however some people don’t really think they are that great whereas others see them as a life-saver – it all depends on your personal circumstances. We’ll take a look at the advantages below:
- More Free Time – This is perhaps the number one advantage for you if you are using an EA. Your EA will practically open and close trades for you under your specified rules, for many traders this is a life-saver and will free up your time and allow you to do other things.
- Remove Emotions – There are many traders who enjoy following the markets and wouldn’t rather be doing anything else with their time, but it can be hard to keep your emotions balanced whilst you’re trading. An EA will help you in this regard as it’s a program, therefore it has no emotions and so ‘trading psychology’ is negated.
- Flexibility – You must think that since you are building a program you will be restricted to the kind of options you can have. This isn’t necessarily true however; if you’re a good programmer or can hire someone who is, then you have opened yourself up to a world of possibilities!
Just as it is with everything, there are some disadvantages to an EA. Whether these will deter you from using one will depend on your own preferences and your personal lifestyle. We’ll take a look at the top 3 below:
- High Maintenance –
Even though an EA will free up a lot of time, it should be noted that they do require maintenance. Since you are dealing with a program you will be responsible for making sure that it is always running smoothly and efficiently – this might require some monitoring.
- Regular Updates –
Many people assume that an EA is just something that you can ‘set and forget’ but this isn’t the case. They actually require a lot of regular updates if you want to keep your account in the black. Think about it for a moment – how much diversity is in the market every day? Market conditions are constantly changing and you have to adapt your program to these conditions.
- Expensive –
Even though the programming might be quite simple to most, there will be a huge investment even if you can program it yourself! If you can program it yourself then you will have to invest a lot of time in developing the program and maintaining it. If on the other hand you decide to hire a programmer then this might cost a good sum of capital and could eat into your profits.
One Thing to Look out For
As you can see, there are many advantages and disadvantages to trading using an EA – how much these factors affect you will depend greatly on your lifestyle and your approach to the markets, so some people will love Expert Advisors and others will hate them.
If you do decide to use a Forex EA that really works make sure that you program it yourself or get someone to program it to your specifications and rules. There are many programs that are sold as systems online and these often promise absurd amounts of profit, they are marketed to the beginner trader who is still naïve however and they simply won’t make you a lot of money.
Bill Adams –Writer and Editor
Bill Adams has been into currency trading for over 5 years. After taking a short course about Forex and Cryptocurrency, he decided to put his knowledge to good use as a writer and trader at TenkoFX. His Educational background in Business Administration and Economics has given him a broad base from which to approach Forex and Cryptocurrency topics.