Meet the Bots That Let You Trade FX
Unless you’ve been living on the moon, you’ll probably have heard of robots here on earth that can carry out a trading strategy without human intervention.
These robots, called “expert advisors”, live within the trading platform and feed on algorithms that tell it when to open, close and modify trades based on a given set of rules.
If you’re an investor in stocks, forex, CFDs there are many reasons why trading robots may be of interest to you.
What is an Expert Advisor or “EA”?
Simply put, an EA is a programme that you install on MT4 or MT5 that will automatically follow the rules you have for your trading strategy.
EAs can run on any machine without the need for you to be near your platform and will execute your strategy without your input.
What are the advantages of using an EA?
#1 Don’t stress
As experienced traders will know, getting to grips with the market can be a thrilling, but maddening endeavour.
The emotions of greed, fear, elation, and frustration can simply overwhelm many traders to the point where they are no longer capable of taking the most important decision in trading – stick to your plan.
#2 The market never sleeps
EA Another common reason for using EAs is to carry out trades while you’re away.
#3 Computational power
A robot can compute many more indicators and scenarios in a second than you are in minutes or hours, for any market you’re interested in trading at once.
That can mean more precise entries and exits, and better overall adherence to your plan.
However, robots are not able to respond to real-time news and or take new decisions based on breaking or developing stories.
A clear stop-loss should avoid the worst end of something going wrong with the fundamentals of your trade, however. And knowing dates for expected news releases in advance will help you avoid switching on your EA during the time if you’re uncertain.
Where can I find EAs?
There are many EAs offered for free on various trading forums and sale through various providers. You can also create one yourself if you’re familiar with the Metaquotes programming languages.
While at TIOmarkets we can’t recommend one EA over another, we can offer you excellent trading conditions on which your robot can run, as well as some of the lowest trading costs you’ll ever find. Register here to trade with a fully licensed and regulated broker.
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