What is Forex EA? Definition and meaning

Expert Advisors

Expert Advisors(EA) are software designed to analyze the market using the parameters specified by the user. They automatically make transactions even at the time when the trader is not near a computer. With proper use of free advisors profitable Forex trading can greatly increase. In addition, the economy and the proper time trader.

The concept of Expert Advisor quite extensive. It includes programs of various types, allows you to make transactions on the Forex market automatically. The most common of these is the advisors on the platform Metatrader: the platform used by most brokers. The program monitors the status of the account and make transactions according to the rules that the user install settings.

The high popularity of robots is largely due to the fact that many new traders, hoping to get an instant profit without applying any effort blindly trust advertising, and consider such programs as a source of passive income. In most cases, this leads to a complete loss of investment. Of course, there are profitable Expert Advisors. But finding such a product is sometimes harder than to learn how to trade. To ensure the effectiveness of the Forex robot, you must test it for six months.

Quality Advisor, subject to proper use may slightly increase revenue from trade. However, he must remain a large part of trading strategy.

The robot provides traders with the following benefits:

• the program is absolutely devoid of emotion, and at all times to act in accordance with the parameters set (however, in rare cases, this quality becomes a disadvantage because sometimes trading requires flexibility of thinking). Advisors are not subject to panic, do not take impulsive decisions regardless of the prevailing market situation;

• trade is conducted around the clock, and stops only when the user turns off the program. Requires a correctly set the parameters, then you can safely go about their business as long as the adviser will work;

• When used properly, the program can help in the testing of new strategies or improving old ones.

Due to the lack of reliability of advisers is not recommended to use them as the main element of the strategy. It is advisable to periodically analyze the market situation and make appropriate adjustments to the operation of the robot. It should be remembered that the program can not replace your own knowledge of the principles and rules of trade. Robot powerless to where you want the human mind.

Advisor is unlikely to make for you a million, but he is quite able to contribute significantly to the bottom line. Care should be taken to the choice of adviser, and before using it to trade it is necessary to test its performance on a demo account.