A Metatrader Expert Advisor is another name for an automated trading strategy that can be used on the MetaTrader dealing platform.
As the name suggests, it is designed to assist the trader by automating all steps of the trading process. This includes everything from analysing the markets in order to find trading opportunities, right through to opening and closing positions on the trading account.
The most sophisticated Expert Advisors (EAs) can even adjust the parameters of their strategy to suit the market conditions. Several now have the ability to dynamically adjust stop loss and take profit levels in response to underlying market dynamics.
The automated approach to trading provided by EAs will often see them referred to as Forex robots. This is due to the mechanical way in which they can analyse and trade the markets around the clock.
The Benefits Of Using Expert Advisors
One of the key benefits that Expert Advisors offer is the purely mechanical approach that they bring to trading. This helps to eliminate emotion from trading calls and eases the associated psychological pressures which can often effect trading decisions.
Almost all traders at some point will have held onto a position for too long or entered the market prematurely on expectation. Instead Forex robots trade to strict algorithms. They have no emotional attachment to a market or trading position and will only ever execute their orders when all of their specific conditions are met.
The trading decisions of an Expert Advisor are based upon a range of statistical parameters and algorithms. The strategies used tend to be purely mechanical and will rely heavily on technical analysis and past market prices. This information is constantly analysed by the software which can process calculations across many markets simultaneously in just in a matter of seconds.
The computerised nature of these systems also means you can benefit from leaving them running on your account twenty four hours a day.
How Are Expert Advisors Created?
Expert Advisors are programmed using the inbuilt MQL 4 programming language which is within the MetaTrader platform itself. The MQL-4 language is highly flexible and can be used to develop both scripts and custom trading indicators which can be used to assist the trading process.
They can be configured to reference the many feeds and trading indicators that Metatrader provides by default. In addition they can also be set to make use of custom indicators which have been developed by the programmer.
Once the initial trading strategy has been set up it is then complied into an indicator. It will then be made available as either an .ex4 file or an .mql file. This allows it to be distributed and installed on other Metatrader terminals so that other users can make use of the trading strategy.
When it comes to choosing an Expert Advisor you will find a large range to choose from. While each of these will follow a unique trading strategy they can be broadly categorised as falling under one of five main strategy types: Scalpers, Break Out, News Based, Hedge Based and Neural Network.
In common with all these EAs the central objective is to generate a profit from the execution of a trading strategy.
Of course not all Expert Advisors are created equally and some will perform better than others. The focus of this site to identify those that contain the best strategies for trading the markets.
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