If you’ve been in the forex trading business for a time then you probably have heard about metatrader expert advisors. If you haven’t yet, then you’re definitely not optimizing your trading activities.
Metatrader expert advisors are software, which works as plug-ins for trading platforms. Its main purpose is to automate your trading system so you won’t be overwhelmed with the number of information coming in.
Metatrader expert advisors monitor the forex market for 24 hours of the day. The software alerts traders when to buy, sell or close a certain currency position. If authorized it also looks for markets where it can place trades according to the parameters you set.
In order to build your own expert advisor, you need to have an in-depth knowledge of MQL4 (MetaQuotes Language 4) which is the language used for programming trading strategies. If you have no idea how to go about that then you can hire a MQL4 programmer, which will automate a trading strategy based on the parameters you want, or you can purchase their readymade metatrader expert advisors.
A lot of traders, however, are divided on the issue of using software for forex trade. Sure there are a lot of advantages but do these weigh more than the disadvantages? This question is for you to answer as I outline the arguments for and against the use of metatrader expert advisors.
There are five main advantages of using an expert advisor. First, the expert advisor has a plan and it sticks to it. This plan is of course developed by you and is designed to provide the stability of trading decisions no matter how uncertain the market is. Because it follows the parameters you set, metatrader expert advisors are more consistent. It helps eliminate the fear and greediness factor of human trading that could otherwise cause further losses. The expert advisor also frees up your time by generating the charts you need and when authorized, opens and closes a deal for you. Now, all you need to do is to watch the forex signals so you no longer have to waste a whole day staring at numerous charts and graphs trying to find our which currency position is doing well for the day. Finally, expert advisors can monitor multiple markets at once, trying to find the best opportunities where you can earn greater profit.
Now that you know the advantages of using software for forex trade, let’s look at the disadvantages so you can better decide whether you will purchase one of the many metatrader expert advisors.
The consistency of expert advisors are is also its greatest disadvantage. We all know how dynamic the money market is, and with a fixed set of rules to work on the software might make mistakes in deciding the best investment opportunities. Expert advisors are still robots and you still need to do your research in order to see the bigger picture and make your trading business a success.