Expert Advisor for Automated Forex Trading

Can the small investor trade the forex market?

Without getting killed?

The time when only large banks and private institutions could trade the Forex market is history. Nowadays, individuals have plenty of ways to trade their own money on the foreign exchange market.

The so-called Forex market, i.e. the foreign exchange market has been opened to private investors for many few years in most developed countries. But with the recent introduction of the Expert Advisor suite ot tools to automate trading systems, the small trader can now automate his trades and compete head to head with the big companies.

These systems let the users set their own parameters and trading guidelines. The program enables software to be developed for any specific type of trading style, as everyone wants to trade using his own trading rules. The developers of these types of software take into consideration any nuances of Forex trading, as well as using continuous data to reflect the fact that the market is trading 24 hours a day, even during part of the weekends.

Without these types of trading systems in place, the trader would need to monitor the currency pair that he trades on a constant basis, as the markets can move very fast, either wiping out an account or missing trading opportunities. By using the Expert Advisor type of tools, a trader can setup trading signals to make his life much easier. Signals parameters include the type of order, stop loss, new trade, good till canceled, etc.

Some of the main benefits of using an automated trading system is that it gives the trader full control of his portfolio, while cutting out the emotional bond a trader has with his positions.

Getting rid of one’s emotions is an important part of successful trading. Making the temptation to trade on a whim a lot less likely. Taking the guesswork out of his trading if the trader has implemented the right trading signals for his particular trading style.

The EA is a mathematical algorithm and it performs purely on its embedded formulas. If the EA does not perform like you want it to, it can be modified, augmented and tweaked until you find the recipe for success that you are looking for. This is a repetitive process that needs to be repeated constantly in order to achieve a money making strategy.

Automated trading involves the trends of the market, either long-term or short-term. These trends play a large role in the number of trades that a trader is involved in. Trend following type systems will trade much less than mean reverting type systems.

The EA, if designed correctly, will take positions on these trends in stride and trade with the goal of minimizing the drawdown and losing trades. Using historical data, traders can analyze and back-test their trading theories and strategies, as some of the expert advisors have a built-in function recording this type of data.

Most of the EA systems developed nowadays are made with the MetaTrader 4 platform. This is the platform of choice for retail forex traders. It provides reliable historical data that can be downloaded from their site, multilingual support and a solid & user-friendly interface.

Automated expert advisors are becoming the tools of choice for many retail investors as well as some companies around the globe. Overall the starting price to get one of those is low, and you can get some tools for free.

But if you want something robust, you need to invest at least a small sum of money. There are some cheap bargains to be found in the EA market.