Forex EA stands for foreign exchange Advisor. Used on the Meta Trader software platform for trading purposes. A foreign Exchange expert advisor automates your entire trading system thus allowing you to make money without much effort. Since 2008, hundreds of this forex EA has flooded the market, however a number of them are just but bogus. This is not to say that there are no good ones, thus one needs to undertake due research before buying a forex EA.
Basically an EA is a set of rules programmed in to the Meta Trader platform for trading. This facilitates execution of the rules on an autopilot without involving the user. Owing the fact that they trade the forex 24/7, they are also known as trading robots. Other than running the EA on home computers, you can also run it on private virtual servers (VPS) alleviating the need to have your computer on throughout.
Forexforeign Expert AdvisorScalping Systems
They are very common. They take small profits ranging from 5-10 pips several times during the day. They are advertised as winning 90 % to 95 % of the time. However, the problem is in the high amount of stop losses to protectyour money. For every 10 pips in profit made, the risk involved is 100 pips. You can win 9 out of ten pips but end up being the overall loser.
Trend Forex EA
This system observes the overall course or trend of the forex markets jumping on to it after it has started. As opposed to the other systems like the Martingale or scalping, trend system does not trade on regular basis.
To a large extent this system works a great deal. The problem being markets don’t trend. All they do mostly is that they keep on going back and forth. Meaning you can lose a lot of trades before you start gaining.
Martingale Forex EA Systems
Of all the forex EA, a martingale system is the most common. Based on the martingales system of betting whereby when you place a bet and lose you double the bet until the time when you win on your bet. Winning a bet means recouping on your losses and making profits.
Though EA systems have been given a lot of hype marketing, many of them do not end up working at all times. This is because markets do change. One time they might be a boom, and then the next time things might work against you. Keeping in mind that Expert Advisorswork on set of rules and thus they are unable to adjust to the market changes.