Automated action: How do Expert Advisors work?

Expert Advisors (EAs) are programs that automatically execute and monitor trades on the Forex or CFD market trades following a predefined trading strategy. The programming can be complicated algorithms and complex strategies, or the simple implementation of buying and selling signals using different indicators.

Expert Advisors at a glance

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One of the best-known representatives is the MetaQuotes MetaTrader EA, which takes over trade management and can open and close positions and you can look here automatically.

In the development of such EAs, the driving force was not only because discover here the ability to position many trades within a very short time, but rather the human component in trading. Probably the biggest challenge is to keep a clear head. Irrational decisions are often made when an unexpected situation occurs in the markets. Automated trading programs can be used to eliminate the risk factor emotions.

Another advantage of the EAs is their reactivities. Often the trading is connected with hours of waiting for optimal entry and exit signals. If a promising situation occurs anchor him in the markets, the trader may no longer be sitting on his computer or is distracted by other things. However, an EA can always react at the same speed. To this extent, automated trading programs can relieve the trader mentally and physically.

The online magazine provides Expert Advisors with concrete reports on performance and detailed practice tests. We focus primarily on the overview with

If you want to use an EA fully, you need programming skills. Programs can not be compiled in this way. However, the programs, such as the MetaEditor, are very learn more time flexible. Thus, not only simple scripts and ordertools, but also complex EAs can be written.
All parameters for position openings and closures must be defined in an I / O. The position values ​​as well as the rules for the automatic opening and closing of the items are defined (eg by pending order or by market execution). The most important part is the determination of the find out more because criteria for the trading strategy, ie when positions are to be opened and closed again. Very popular here is the generation of trade signals by means of indicators or on the basis of moving averages.

In most EAs, some standard indicators (eg MACD or RCI) are already pre-programmed. It is also possible to integrate your own indicators or to use several indicators at the same time. pop over to this site see This creates extensive signal chains in order to be able to look at the markets differently.

Once all these parameters have been defined, another important part follows, and an exit strategy must be defined. This is done by setting take-profit or stop-loss levels. Likewise, such a rule set can be fixed on the basis of an indicator signal. For example, EAs for the MetaTrader can be used for different time periods, which makes automatic trading possible in short, medium and long term periods.

There are now some EAs that do not require any programming skills. After downloading, they can be integrated into their own trading environment.

The basic prerequisite for all automated trading systems is a plan which, in a particular scenario, operates according to clear rules in the CFD and as click over here now Forex markets. Thus, such a system is a complex set of rules and will watch this video instructions. In order to be able to generate signals, they use different analyzes and evaluation data.

Among the basic types of automatic trading systems are:

  • Trend Tracking Systems
  • Countertrend systems
  • Patterns
  • Breakouts

It is important here that traders can at least follow the underlying strategy, since the system is also supposed to match their own risk preferences.

Purchasing a prefabricated system should not be blind, because many programs do not hold what they do