Before risking your hard-earned capital in automated forex trading, it is crucial to find a dependable expert advisor created by a professional EA programmer.
Every single forex software that is found in the industry work in a different style and their features are not necessarily the same. The most significant type of automated forex trading software is an expert advisor which is a programmable piece of software developed by an EA programmer having expertise in forex trading. Since trader expects it to work automatically within pre-selected settings and parameters, these EAs are not meant to execute manually. EA programmers develop it in a way that it is:
- Easy to use
- Unique features
- Highly accurate
Unless the aforementioned qualities are not included in an EA, forex traders would avoid using it at all. It is worth noting that though all EA programmers are capable but not every piece of automated forex trading software is worth your precious time and valuable resources.
Strategies utilized by EAs
To perform efficiently and generate profits an EA utilizes strategies to trade forex. Some of those strategies are as follows:
This one is a commonly used trading that can also be applied in forex using the logic of an expert advisor. In this strategy, one has to set buy and sell orders at a set price simultaneously. This strategy can be easily implemented in a manual setting. But the reason why EA grid trading is preferred is due to its high accuracy while placing trades.
Scalping is known as a popular yet sometimes risky short-term forex strategy that EAs can perform easily. The goal during scalping is to make small profits (10 pips at a time) by lowering one’s timeframes from 1 to 5 minutes.
Large movements occur in the forex market due to various news releases that could influence the market trends positively or negatively at any given time. Using the news trading strategy with an EA increases the chances of making a profit despite the volatility caused by a news release. Utilizing this type of unpredictable trading strategy with an EA is recommended for professional and expert forex traders only to minimize all losses.
How an EA programmer creates forex robots?
When a capable forex trader with sufficient knowledge about programming decides to develop a forex robot, they invest all of their time and resources into that particular project.
- Step 1:
Observation of the price movements in a live forex market is where EA programmers start their work. Because when you spend time monitoring the fluctuation occurring in the market, you pick up repetitive patterns.
- Step 2:
Monitoring the forex market cannot be performed efficiently without the help of various technical indicators which were invented to pinpoint the direction, trend, and opportunities within the market. An EA programmer specifically chooses useful technical indicators to base their robot on.
- Step 3:
Researching the forex market to find weaknesses and patterns that an EA might be able to exploit is difficult but not impossible. Tens of thousands of programmers and their teams figure out a way to generate trade signals.
- Step 4:
Once all research is done and recorded, the programming phase commences during which an expert EA programmer builds the forex robot. Writing codes of various trading strategies and the addition of features are done in this step.
- Step 5:
Once an EA has been coded and ready to be used with a suitable forex trading platform, an EA programmer runs numerous tests to optimize its functionality. This step is all about improving what an EA programmer has created using backtesting with live data.
- Step 6
After running series of thorough tests to check the efficiency, capability, features, interface, and fine-tuning some other important details the software is considered functionally complete. At this point, the EA is ready for real-time testing and handles the real capital of a forex trader who trusts it to work.
The performance of a newly-developed forex robot is sometimes closely monitored by an EA programmer to ensure perfection.