Probably, a lot of newcomers came to Forex thanks to the ubiquitous advertising of Expert Advisors that ‘earn money when the trader is doing his own business’. Is it really so, does an Expert Advisor really earn money instead of a trader, how does a Forex Expert Advisor work?
What is a counsellor?
To begin with, it would not hurt to understand – what advisors are really advisors, on what principle do Forex advisors work? In essence, a Forex Expert Advisor is a set of simple commands folded into one complex programme that works according to a given algorithm. Initially, the first Expert Advisors were very simple and were intended to facilitate the routine work of a trader to search and process the conditions for opening (closing) trade orders. Then these programmes became more complex and eventually turned into multicurrency Expert Advisors, which trade several currency pairs, applying several trading strategies, depending on the current market situation.
Trade process automation
The use of standard MT4-MT5 trading terminals has made the work of Forex traders much easier. Almost all brokers provide their clients with the opportunity to work with MT4-MT5 terminals, on the basis of which you can create any Expert Advisors and scripts, using a simple programming language MQL. It is enough to identify the basic rules of a trading strategy, formalise them for MQL, think over the rules of maintenance of an open trading position and the Expert Advisor is ready. Experienced traders, in order to save their time spent in front of the trading terminal, automate their trading strategies, as a result of which Forex Expert Advisors appear.
Variety of advisors
If we take into account how many trading strategies exist, we can imagine how many trading advisors have been created. Moreover, all available Expert Advisors can be divided into several categories. Probably, one of the most important features of Expert Advisors is the ability to work on a trend, flat or counter-trend. No less important quality of an Expert Advisor is the ability to work with stop orders.
In a separate category can be attributed very popular, aggressive Expert Advisors that use in their work the principle of proportional increase in the volume of subsequent open orders (Martingale). Such Expert Advisors increase the deposit very quickly, if the trading conditions are favourable, but in the same way they quickly drain the deposit if the market conditions change in the opposite direction.
The most reliable forex advisor
Any experienced trader will tell you that there is no such thing as the most reliable Forex Expert Advisor, as the market is constantly changing and what brought fabulous profits yesterday does not work today. So advisors, as formalised rules of any trading strategy, can bring profit only if the market conditions allow such work. That is why we can conclude that there are no the most reliable Forex Expert Advisors, each Expert Advisor can bring profit only under certain conditions in the currency market.
Best Forex Expert Advisor
If you believe the advertising, then almost every second Forex Expert Advisor is the best. But in fact it is not so, the market is constantly changing, any patterns cease to work, as well as advisors written on the basis of these patterns. It turns out that the most advertised Expert Advisor, which 2-3 years ago brought fabulous profits to the owner, nowadays just slowly drains the deposit, because the market conditions do not correspond to those under which it was written.
Ability to access advisors
Download Forex Expert Advisor is not a problem at all. Now there are thousands of trading advisors freely available, most of which can be downloaded absolutely free of charge. The only question is whether I need this Expert Advisor? Downloading someone else’s Expert Advisor, a trader needs to thoroughly understand the algorithm of the owl. Is the strategy of this Expert Advisor relevant at this time, will it be able to bring profit to the owner in this market environment? If the trader is familiar with the trading strategy, on the basis of which the Expert Advisor was written, then you can safely download the Expert Advisor, test it and then use it for trading.