The MetaTrader 4 allows you to automate your trades through the use of Expert Advisors which is also called ‘Forex Trading Robots’. These programs make algorithmic trading so much easier and help monitor your trades in the financial market. Based on the parameters you set, the Expert Advisor notify you whenever a good opportunity knocks or even automatically opens a trading position. That’s not the end of the Expert Advisor’s capabilities. By the time you open a position, the EA can automatically add trailing stops, limits, and stops to avoid incurring losses.
Knowing More About How Expert Advisors Work
Expert Advisors are mostly used in Forex Trading. However, you can also use them for the other markets available in the M4 trading platform. If you also have a good broker, you can trade using EA on markets like commodities, cryptocurrencies, and indices.
So, how does EA help you with your trades? How does it really work? Expert Advisors enable traders to set their preferred parameters and get triggered whenever a good opportunity is found. In MT4, there are ready-to-use EA but you can also create your own or build one according to your needs.
Reasons Behind the Popularity of Expert Advisors
If you have an Expert Advisor that’s properly programmed, you can enjoy the ease of monitoring hundreds of financial markets. That being said, you do not need to watch the market 24/7 just so you can catch a good trading opportunity. You just simply use a trading robot and pick how much time you can dedicate to watching the market. EA works well in sending alerts when it’s time to open or close a trading position by yourself. You can also set parameters that instruct them to open a trading position instead of you. All you have to do is monitor your profit and loss.
Emotions can affect your trades and your ability to make a decision. There are times when it encourages a trader to still hold on to a losing position rather than just closing it to minimize the losses. When you automate your trades, no emotions can hinder your decision-making because the algorithm will decide based on the parameters you gave.
The EA in MetaTrader 4 is very flexible in that it can run in all markets that you wish to trade. It also takes a huge amount of information such as economic announcements, price movements, technical indicators, and also the available balance in your account. It would be so good to build a powerful algorithm capable of tracking the variety of markets all thanks to Expert Advisors.
It is true that building a strategy is quite a hectic task. But it doesn’t end with that, you have to backtest it before you use it on the live market. When backtesting, you will have to run your strategy into real historical data. Then, you will know how it will perform. This is the best way to iron out the possible issues that will come along before you lose your real money.