Iam a newbie and Iam hearing this term very frequently in all the forums. What does that exactly means.
Can anyone explain me in simple plain english?
It’s the name of customized automated programs people can create for Metatrader’s platform. You’ll also commonly hear them be termed as robots.
You can write code for a mechanical method of trading you might have devised, apply it into Metatrader’s platform and the program will make the trades for you in accordance to what you dictated.
In theory it sounds like the only way to trade, but in practice it’s much more difficult.
It seems Trading with Robots/ Expert Advisors are really dangerous. When iam trading with expert advisor in metatrader platform how could i know if my trade goes in a wrong direction. Can i control my wrong trades?
I played with them about 3 or 4 years ago. I had it set up that when a trade was made, I would get a notification sent to my cellphone. If something wasn’t right, it would pull out. EA’s are subject to human error and also, events in the market that might not be thought of in the creation of the EA.
Once I had the EA firing off a trade and instantly closing it repeatedly. By the time I took notice and turned it off, I lost about $400 or something like that in just the spread. Can’t recall exactly why it did it, something about an indicator continuously repainting back and forth. It was fixed, and I used it a bit more after that with mixed results. Mainly because I didn’t give enough of a chance. I think just about any strategy has some form of merit if people just stick to the plan, endure the losses, and properly manage their trading. At that time, I was more or less fixated on finding the holy grail and was bouncing around from methodology to methodology until I settled with what eventually worked best for me.
@Master Gunner
Thanks for the extended informations. Currently iam trading the demo account with the MT4 forex broker Forex Control | Trade Forex online with Asia Broker: India, China, Russia CFD markets . How could i know that my broker supports expert advisors. Does every broker have theri own expert advisor to trade or we have to buy from them? I searched for expert advisors in google looks most of the websites are not promising. And many of them are demanding for huge money. Where can i get free EA’s to test in my demo account?
If you’re new to trading, you’re going to get way deep in over your head if you start looking for EA’s as opposed to learning how to trade. Trade first. Learn how the market works. And when you can profitably trade a methodology over a reasonable span of time to give you a reasonable idea that perhaps you have an edge in the market, then perhaps you can begin to explore the world of EAs.
Forex isn’t some 401k asset allocation class, it is a beast that will rip you of your money in minutes and you won’t even know what hit you. Do not try to take short cuts. And by looking for EA’s, that’s what you are attempting to do.
Lastly, don’t buy any EAs. If it’s that great, why sell it? I never understood the logic in that. When you have a system, either learn the coding to develop one on your own, or hire a programmer to develop one for you. Draft a contract if you enter into any relationship with a coder. If you have something decent, and you hire out, you need to know who owns the rights of the program when it’s complete.
I won’t be steering you into any direction where I feel you would be setting yourself up for failure.
Also, ask yourself what you mean by it doesn’t look promising. If you’re looking for a 80 win rate every time in every market condition, you’re just setting yourself up for failure.