FOREX MARKET HOURS WHICH FOREX MARKET IS OPEN/CLOSED NOW? Before we look at the trending…
What do forex expert advisors do?
Wondering what is a Forex Expert EA Advisor (EA) that MT4 platforms use to monitor and trade forex markets? We’ve got you covered – this post will tell you every detail about the use and function of the best forex EA. Let’s get started.
What is an Expert Advisor?
Written in MetaQuote Language (MQL) 4, an expert advisor is a forex automated software used on MT4/MT5 trading platforms. They are programmed systems that automatically generate trading signals and alert you about potential trading opportunities.
You can choose an EA programmed to trade for you entirely or just to notify you of a trading opportunity. In both situations, they manage to eliminate the emotional factor from trading decisions. The fear of losing or the greed of making more profits won’t impact the trades with expert advisors as they work purely on your instructions irrespective of profit or loss.
Since Best Forex EA markets keep operating 24/7, you need to monitor live charts continuously. With an expert advisor, you can grab trading opportunities even while sleeping! Learn more about how to download the Best Forex EA bots.
Basic Trading Styles of an Expert Advisor
● News Expert Advisor
They will monitor financial news events and price moves to help you leverage the significant price shifts.
● Breakout Expert Advisor
These EAs continuously carry out technical analysis of the Best Forex EA market behavior to determine big movements. When a price breaks through support and resistance levels, they open a trade or place you in the best trading position.
● Hedge Expert Advisor
This EA will pose two opposing conditions in front of you while minimizing losses. You may also have to reduce your possible profit when decreasing the risks involved. Instead of analyzing the market conditions, they will tell you the best time to sell.
● Scalper Expert Advisor
Scalper EAs place a series of small trades and wait for small price shifts. When they encounter a profit, they sell those trades. This can reduce the possible risks to the main account, but the profit margins are comparatively smaller. They can trade even for 400-500 times a day according to the market conditions.
● Adaptive Expert Advisor
These are the most flexible expert advisors that you can set up feeding different parameters and rules. This makes them capable of reacting according to the fluctuating market conditions.
What are the functions of the Best Forex EA?
Here’s what Best Forex EA expert advisors actually do.
● Market Analysis
A Best Forex EA expert advisor analyses the market and behavior of financial instruments using indicators such as Moving Average or Moving Average Convergence/Divergence (MACD) Indicator.
● Preference-based operation
According to your preferences, an EA can take full control of your account, check your current balance, and then decide how much can be put at risk. Or else, they will review trades, choose where you can place a trailing stop, take-profit, or stop-loss, and consider the dominating market conditions. Then they will notify the perfect opening position.
● Entering and Exiting a Trade
To open a trade, the EA checks if there’s equity in your account, verifies entry criteria, and ticks on every currency pair(s) assigned to the trade. But if open trades already exist, they’ll check exit criteria (stop-loss or take-profit) and automatically exit the trade.
● Monitoring multiple charts
Some expert advisors can also run on multiple charts simultaneously even on the same currency pair. Additionally, they can run alongside other EA’s and put manual trades to work.
● Handle errors
During a server error like requote or timeouts, the expert advisors try the last action several times. They also avoid the “invalid stop” errors and stop-loss or take-profit errors. In such situations, the EAs adjust the price to the closest valid price.
● Money Management
The expert advisors adjust your lot size by setting the maximum loss per trade according to previously set equity percentage or account balance. That means they place a stop-loss on all the orders they make. For each win or loss order, they increase the lot size which you can control with an adjustable multiplier to reduce risks.
● Protection from dynamic spreads
For this, you need to set the maximum spread limit for a trade. The expert advisors will automatically suspend the trade if the current spread surpasses the set limit. Therefore, EAs help in avoiding the dynamic and large trading spreads.
● Margin Check
Here also, you have to specify the margin percentage for taking new orders. Once you declare a limit, the expert advisors will suspend all the new orders when the margin exceeds the set percentage limit. This eliminates all the unexpected margin calls.
Achieving the level mentioned above requires a fully automated expert advisor that can manage your forex market from start to finish. At FxShareRobots, our developers are well-trained in MQL 4 development. We program only the best forex EA that makes forex trading a profitable venture for you.