Does a trader need Expert Advisors?

Coped with the trading terminal and strategy it is time to launch further study of trading terminals’ potential particularly MetaTrader4. This terminal in addition to the trading instruments for orders management also provides opportunity of advisors and indicators development with the help of MQL4 language which was included in basic package of the program. Finished scripts and programs can be applied here to already well-known chartss of currency pairs.

Forex Expert Advisors are very handy programs which can work automatically i.e. without direct trader’s influence, only instant Internet access is needed. You can let EA use all your deposit or turn it on as a prompter which will signal you according to the given conditions of indicators. So there is a finished automatic trading system, or Expert Advisor, which monitors the market situation in search of signals for opening or closing positions and notifies a trader at the moment signal comes. Opportunities of MQL4 language are unlimited for trading. Trader with a rudiment of programming can encode needed algorithm by himself/herself, which will be a good helper in trading. Opportunity of establishing own Forex Expert Advisors, indicators and scripts will save much time if many calculations and analysis of several charts in different timeframes are needed.

There are basic EA in terminal MetaTrader4. They are not that popular among traders and established mostly for demonstration of resources than for serious trading. For instance, Moving Average search for signals based on 2 MA indicators (quick and slow). It is simply adjusted with indication of necessary characteristics. There are also basic scripts such as floating stop-loss which is indispensable when you often need to leave your workplace. This program moves stop-loss when the price moves away in a distance of given number of pips from the price of opening position.

Such bright prospects as opportunity of automatic trading (Forex EA was planed partly with this aim) narrow the question about human factor and trader’s presence in front of computer to zero. And everything can be ok, but there are some disadvantages and rather serious. Firstly, even professionals make mistakes in program code and it can negatively affect the balance. Secondly, some Forex EA does not have expected effect which can be corrected by optimization, i.e. selection of more suitable characteristic of indicators. However optimization can give more false signals when market changes its trends or make sideways trend. And thirdly, if trading strategy is based upon the opening of multitude short-term deals, some problems can appear with broker up to disabling of EA usage.

Forex EA is an irreplaceable traders’ assistant but it should be cleverly used. It is better not to confide your balance to the program if doubts of its efficiency are not eliminated. Anyway it is better to secure yourself – check the system in DEMO account or at the history of any currency pair. So answer to the question “Does a trader need Expert Advisor” is being formed by the trader himself/herself depending on his/her experience, free time and skills of using this instrument.