Wednesday, February 8, 2023

Forex Expert Advisors – Are they Living up to the Hype?

As the Forex market gets more and more attention, so are the Expert Advisors that drive the more powerful players of the Forex game.

Why do 90% of Forex traders lose? Traders are humans and like all humans, we suffer from greed. In crucial moments (or market conditions) we lack confidence, we have fear of what might happen and, most importantly we are usually (90% of the time) inconsistent.

Taking this into consideration, 90% of traders WILL LOSE MONEY IN FOREX. They will consistently give away their money to the other 10%. This, together with the illusion of becoming millionaires overnight, keeps the Forex market a great business for Forex brokers and the so called guru’s and their e-books.

What is an Expert Advisor

An Expert Advisor is effectively a trading “robot”. Robots can beat humans at chess and now they can beat humans at trading. An EA robot will watch the market for you, placing trades under certain parameters (strategies). The use of a “robot” helps traders avoiding the fear, greed, lack of confidence and inconsistency which causes most to fail.

The Expert Advisor has a plan. It sticks to it no matter what, no matter how ugly or uncertain the market looks. It has no greed and will be running 24 hours a day for you.

What are the Benefits?

Through Expert Advisors, transactions can now be done in real time. Although manual systems have existed for quite some time now, it is difficult to achieve such benefit that the automated Forex system can offer to its traders. Unlike the manual system, trades can happen within a few milliseconds which can be a big plus. In fact Expert Advisors address many problems, especially if the trader is losing a few times in a row that prevents them from risking new trades.

When trading with Expert Advisors, you will have a greater diversification. This means that you can trade in various markets in different time zones at a time. You can execute trades with traders from Singapore or London even if it is already 12 midnight where you are. This benefit allows you a multiple exchange model option. You can use varying trading models to evaluate short-term data. Traders will be able to predict trends over shorter periods of time. It can take as little as fifteen minutes to half an hour to predict trends with reasonable accuracy.

Effect on the Market

As previously mentioned, the Forex market is unique because of its extreme liquidity. When the market goes automated it increases this liquidity. Expert Advisors also solve risk management problems. International checks, commonly used in making purchases on Forex market, are synchronised through automated technology. As a result, there is a slim chance payments are delayed as automated transactions are done in real time. This reduces the risk of non-payment by either parties. There are problems noted with the use of Expert Advisors, however, they can be fixed through consistently-updated technologies.

With the use of Expert Advisors, the prediction of $2-3 trillion average daily turnover within the next 8 to 10 years can be changed to within the next 4 to 5 years. Given the quick yet efficient trades on varying time zones, automated Forex trading will now be among the existing lucrative business around the world.

Learn how to read the charts so you can choose an Expert Advisor that is right for you.

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