What is an Expert Advisor (EA)?

Expert Advisor is one of the programs for automatic or semi-automatic trading. Its task is to monitor the market situation and signal what changes are taking place in the market. Its tasks also include making trades according to predetermined assumptions.

 

How does the Expert Advisor program work?

Expert Advisor is designed to exclude the human factor as much as possible and take advantage of the advantages offered by technology to make money on transactions. A human is needed here only to create the right algorithm and to monitor whether it is sure to work properly in a particular market.

A given algorithm will usually not work well under all conditions, so the investor should tailor it to the prevailing situation.

There are also semi-automatic programs that signal us certain situations in the market but do not make transactions themselves.

What platform does Expert Advisor run on?

The Expert Advisor program is designed to run on the MetaTrader 4 or 5 platform.

Do you need a human to transact with Expert Advisor?

Since it is an automated trading program, it is supposed to exclude humans from the process of making trades. Therefore, the trader, having verified the efficiency of the algorithm, does not need to supervise the program and participate in making trades. However, one can, of course, also participate in trading and select and modify the investment strategy according to our individual preferences. We should also remember that it is important to keep in mind how much capital we can potentially lose.

If we are talking about semi-automatic programs, then human intervention is necessary.

What are the advantages of using Expert Advisor?

When a trader uses the program, trades are made all the time, regardless of whether the trader is currently active or not. The program reacts faster than the trader, to all the changes that occur in the markets. The use of the program also eliminates the emotions that accompany a person when observing changes in the market.

How to create an Expert Advisor program?

Expert Advisor can be created using the MQL programming language, so if you do not know how to program yourself, it is worth using a programmer or a company specializing in such programs. The trader’s main task is to create assumptions on the basis of which the program will make decisions.