The Expert Advisor - Forex Trading Software

By Linda Galla

Expert Advisors are quite sophisticated software tools used in forex trading. The advisor is designed around a specific set of algorithms, and excutes trades from your trading platform.

Most forex traders fail because they succumb to the human emotions of greed and fear. Trading with an Expert Advisor removes these emotions from trading. They are logical.

Many times, in an effort to grab that last pip of profit, a trader will hold on to a trade even when logic dictates an exit. On the other hand, a trade is often exited prematurely due to fear, and profits are left on the table. The Expert Advisor trades with a plan, regardless of outside influences, and does this 24 hours a day when the market is open.

The Expert Advisor watches the market for you and will execute trades based upon predefined parameters. Unlike a human, it is also capable of monitoring indicators, support and resistance levels, and many other factors in multiple timeframes and making immediate decisions.

There are a variety of Expert Advisors available today, at just about any price you could name. Some are currency and/or timeframe specific, others are not. There are some that try to predict trends and others that go with them. Some are low risk (1-3%) while others recommend 2-4%, but most are adjustable. Some close out trades only when a net profit is achieved, holding tight through a drawdown, whereas others will utilitze a stop loss.

There are many questions to be researched and answers to be considered before buying an Expert Advisor. It's also important to be sure the EA will run on your trading platform, that you can run multiple EA's on one account, and that it can be used with a mini account, if that is your account type.

Prior to installing an EA on your trading platform, there's one more thing to think about. What happens if your computer dies, or the power in your area goes out? Remember that the EA handles your trade, and resides on your computer, but open trades are in the hands of your broker. In this case, you would have an unmanaged open trade.

If you are located in an area that is prone to power failures, you might want to consider opening a VPS (virtual private server) account and loading your trading software on it. That way, your platform will continue to run without you monitoring it, and it can be accessed from any location.

Expert Advisors are definitely helpful tools. Do your homework and conduct some in-depth research before making your purchase and your experience should be a good one.

Take full advantage of a revolutionary system that will show you how to make money easily trading forex. Visit Forex Trading Tips and discover how to get hands on training using an amazing Expert Advisor, Forex Autopilot.
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