What is a Forex Advisor?Friday, 11 August 2017 19:54
Many traders use Expert Advisors in their work. These are the programs that work based on the built-in strategy. Some of them independently analyze the indications, determine the strong entry points to the market and set stop orders, providing these data to the trader. Others trade on their own, excluding the participation of a trader.
There are many different trading robots, with various efficiency degrees. They cannot go beyond the built-in tools, and their success depends entirely on the developer's competence. Some of them make too risky transactions and lead to a loss of deposit. Others trade too cautiously, yielding a small income. However, there are also successful robots that can bring a stable profit to the trader.
Advantages of Robots
Experts are used not only by the beginners but also by experienced traders. Advisors are always used by banks and other major players. Let’s consider the reasons for their popularity below:
- Trading around the clock. A man is not able to stay on the Forex market around the clock. An automatic expert can quickly open deals at any time, with no breaks. You only need to provide the necessary computer power and the stable access to the network. For such a purpose, the remote VPS servers are used, which allow the Expert Advisors to work even after you turn off the computer.
- No human factor. The robot has no emotions. He won’t take rash decisions and is based only on the indications of the built-in technical tools.
- Help for beginners. If you’re just starting to trade on the Forex market, these programs will help you to start earning, even if you have not enough knowledge, nor the necessary skills.
Obviously, the advisors have some shortcomings:
- Programs fail. Sometimes errors can occur during the work of experts. It’s impossible to foresee such events, and they bear a significant risk for your deposit.
- Lack of the fundamental analysis. The financial market is a subject of some critical factors that the robot cannot analyze. When the important economic news is released, or resonant political events happen, the expert will focus only on the indications of the built-in tools, and open the losing trades.
- One trading strategy limit. The program cannot change tactics and uses only those resources that the developer has applied. You won’t be able to find a robot using rare and non-standard approaches since they are mostly based on the proven methods. At the same time, some robots combine several strategies.
Choosing a successful advisor is not an easy task. If you look for an advisor that can provide you with a stable profit, listen to the feedbacks of other users. It’s also necessary to test the robot for six months. It is done either in real time on a demo account or using special tools of the MetaTrader4 platform, on the archival currency quotes. So you can see all the decisions made by the robot, and assess its effectiveness.