Sunday, November 11, 2012

Forex Expert Advisor: What do they do?

By Sam Johnson

A trading robot or an expert advisor is a program that helps the trader with the trading on the Forex market. They use certain predefined conditions in which they should execute trades on your trading platform without your interference. Many of the automated bots don't require your attention but some of them can ask you if you agree with their actions. This depends on how would you like to use them.

One of the most common reasons which makes traders fail in the forex market is due to their emotions. They tend to trade in the influence of emotions such as greed and fear. Being inconsistent is another key factor that fails traders to be successful. The proper implementation of the trading strategy is also difficult for some traders. However, an expert advsor can trade in the forex market without emotions or inconsistency. The decidions they make are based on the proper rules programed into their code. That is why the trading robots trade on the financial markets without emotions that can lead to unprofitable trades. Those advisors make the trading seem not so hard as they can monitor several different actions at the same time such as the financial news, different trading timeframes, spreads, liquidity etc.

There are many benefits of the forex expert advisors. Most of the decisions are made by the software and require no interaction on your side. Traders who don't use such advisors seem to have trouble with the making of decisions. That can affect your trading and can result in a smaller amount of profits. The forex robot will calculate certain price movements in the past and it will take action when a certain rule occurs. For manual trader who is trading without such a software those rules can be seen 2-3 a day, which means that you must watch the market movements the whole day in order to make a trade. If you are using a trading robot it will do all those things for you.

Moreover, there are advisors which can send you a sms or an email when a trade occurs. That way they can keep you posted even if you are not in front of the the computer. That means that you can spend more time with your family as that little program can be responsible for your income and profits.

Although the forex robots can be very beneficial for the trader, here are a lot of expert advisors out there that won't do any good on the real market. If you wish to try such a product be sure that you can test it before you use it and that it has been properly tested through the years before you start using it with you own capital.

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