With regard to foreign Exchange (Forex) market EA is an abbreviation for foreign Exchange Expert Advisor. EA are also called auto traders or robots. They are computer programs written in the Meta Trader 4 language software platform. You can simply download it from the Meta Trader 4 site.
Description of the Forex EA
They automatically execute foreign exchange trades with no intervention of the human being. They operate within the Meta Trader 4 platform. Each and every Forex Expert has criteria that are specific to it defining when and how it will undertake execution of trades for the user.
Uses of the Forex EA
They are used for eliminating the human element in Foreign exchange trading. They monitor the forex market on a continuous basis thus eliminating human weakness such as hunger, sleep, fear and even greed. Additionally, they ensure consistency and accuracy that human traders cannot sustain. With EA you have the option of executing multiple trades in a much shorter time unlike a human trader who may take quite some time.
Advantages of Foreign Exchange Expert Advisor
EAs offer numerous advantages. The primary advantage stemming from the fact that Foreign Exchange market is usually closed over the weekend. With an Expert Advisor you are sure of accurate monitoring from on Sunday evenings and even Friday afternoon on a regular basis. An individual cannot do this manually. Another advantage stems from the fact that Expert Advisors can follow specific rules to the latter. Improper interpretation of the rules is eliminated.
Costs Associated With EAs
Expert Adviser costs come in three ways. The most common way of acquiring an E A being through a free download from websites related to Meta 4 Trading. If you cannot get one through a free download, get a onetime purchase. After the EA has had a good record for long term profits, programmers will enhance it with newer features aiding the usefulness of EA and then sell to the users on a monthly basis.
Foreign Exchange Expert will be specific on its own method of trading. For instance you can have a foreign Expert advisor that is based on moving your averages and thus will only enter when the 20 days of moving averages goes to the 50 day.
In conclusion EA are very useful tools for foreign exchange trader. When you give them precise criterion for undertaking certain operations, you are sure they will be followed to the latter. They have the speed and are not biased in any way.