What You Need To Know About Forex EA Robot
Welcome on best ea forex! Forex trading may not always go smoothly due to several factors, including fear and greed. Trading with emotions can negatively affect your trading results. However, one way to avoid trading with fear, greed, or emotions is to use a Forex EA Robot.
Therefore, ride with us as we shed more light on the EA robot and how to use it to trade the FX market.
What Is a Forex EA Robot?
Simply put, an EA Robot is a trading software designed by veteran traders or programmers to help traders automate the forex trading process. It is written in MetaQuotes Language 4 for the MetaTrader platform. Hence, it is compatible with the popular MT4 and MT5 platforms.
You can program an EA to generate trading signals on auto-pilot. You can also code it to inform you of trading opportunities. It does this by following a very strict and consecutive plan that is free from human intervention.
Type of EA Robots
Below are the 4 types of EA robots:
- The Breakout Expert Advisor: This type of EA is developed to open a trade the moment a price breakthrough pre-determined support and resistance levels.
- The New Expert Advisor: This takes advantage of big price movement or different news events that can affect the market.
- Expert Advisor Scalper: These are often used by scalpers to take small profits before the close of a trading session.
- The Hedge Expert Advisor: The Hedge Expert Advisor plays two role – to facilitate profit on one end while diminishing the loss on the other end.
Things To Know Before Using A Forex Robot
Before you can effectively use an EA Robot, there are some things you need to keep in mind; otherwise, you may lose money. Some of them are:
#1. Backtesting results
The important factor to understand when you start using a forex robot is to be wary that backtesting results are not proof of the efficacy of forex robots. Since backtesting results depend on the data quality applied in the testing. The default data in the MT4 trading terminal doesn’t get up to a modeling quality of 100%. So, if you want to backtest your forex robot, ensure you source for data from reputable or trusted sources.
#2. Execution Speed
Next is to understand your execution speed. If you are using a free forex robot, it will time out automatically if there are no trading activities for more than 30 seconds. Therefore, before you launch a free forex robot, you should re-authenticate your IP address and set up login details. Otherwise, if it times out, it may negatively affect your trading results.
If you want to program or code the EA Robot yourself, be aware that the process of debugging is not as easy as it sounds. In fact, MetaQuotes has included it in their policy not to respond to traders’ debugging need except brokers.
#4. Test your MetaTrader connection
Last, and very important tip – test your MT4 connection to avoid disappointment. Turn your trading terminal on and connect it to your broker to run the forex robot.
Remember, there is nothing more frustrating than discovering that your EA wasn’t connected and refused to connect when you need it the most. You need to test the connection before you can be certain that you have a working EA installed on your trading terminal.
Step-by-Step Installation Guide
Below is how to install a Forex EA Robot on your trading terminal:
- Download the forex robot from a reputable or trusted source
- Save the downloaded file in a folder location you will easily remember
- Copy the EA file and paste it in your MetaTrade4 folder. This folder can be founded located in the C:drive
- Launch your MT4 trading terminal
- Head to the navigation panel and look for the EA section
- Click on the plus sign, and a list of the available EAs on your MT4 platform will appear
- Click on the EA Robotyou wish to install and select “install”.
- The robot should appear on your trading chart.
- Next is to adjust the settings.
- Set the forex robot to suit or match your trading preferences.
How Does an EA Robot Works?
Knowing how an EA Robot works is critical if you want to make a profit on the market. At its core, EAs are designed to automate the trading process without lifting a finger.
They use technical indicators to predict market conditions and then make a trading decision based on the information available to it in order to make a profit. Before you can use a forex robot, you must have installed it on your trading chart. If you want to see the best perforing robots you can check our Best Forex Robots page.
Can I run more than one EA Robot at once?
We have a simple answer to this question – YES. While you can run multiple EAs on your trading terminal, you should keep in mind that not all Expert Advisors can collaborate in a single trading terminal.
In fact, if all the EAs run at once, your trading chart would be cumbersome and confusing. You won’t be able to decipher any trading signals.
Do Expert Advisors work in 2020?
This question has sparked a lot of debate on the internet. So, to answer this question, let’s highlight the positives of a Forex EA Robot first:
- A forex robot doesn’t sleep. It can work 24/7 except you switch off the system.
- It doesn’t use emotion to trade.
- It is compatible with the popular MT4 platform.
- Nothing can distract the software from trading your selected currency pairs.
Now the negatives:
- Lack of creativity
- It is difficult to verify an EA’s accuracy.
With the above points in mind, we can easily conclude that a forex robot still works in 2020. There are many bad but also working forex robots. If you want to see a working robot you can read our detailled econ power trader review.
Conclusion Of Forex EA Robot
A Forex EA Robot is an automated trading software that every serious trader should have in his or her trading arsenal. It comes with lots of benefits – one; you can be making money while you are asleep using this tool. Secondly, you can trade without emotions and second-guessing.
When you install an EA on your trading terminal, ensure you do your due diligence to the source of the tool. There are so many EAs on the internet that you need to be wary of. Some of these EAs will mislead you and make you lose your hard-earned money.
Finally, don’t take the risk of trading with a live account. At best, you can start with a demo account to learn the dynamics of the market and how to use an EA properly. We have some technical indicators here on our site you can use alongside the EA through this link.