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What is an EA (Expert Advisor)?

Discussion in 'Beginners Forum' started by lety, May 9, 2013.

  1. lety

    lety

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    EA is a program, usually small, used in conjunction with MetaTrader (MT), a software that you can download from most brokers who work with forex and commodities. You can download the MT to use it with a demo account or real. And then you can install an EA within the MT so your system runs automatically opening and closing positions and ideally making money.

    How does the process work? After installing the EA folder experts MT, quit and reopen MT to MT acknowledge the EA. Then open a chart of currency or commodity desired (depends on how the EA function) for click the time to put the graph in a given time (15 minutes, 1 hour, 1 minute etc..). Now, you associate the EA to the chart of the currency. This is done in two ways: by clicking and dragging the EA in EA to the chart or by clicking right on the EA and asking to attach it to the chart. When it is attached, you can change the settings of EA, which can be stop-loss, risk you want to take at each position in relation to the total value of the account (usually in%) etc..

    There EAs that only work with a coin and there are EAs that open positions in various currencies. There are also specific EAs for commodities, usually gold and silver. EAs seek to identify opportunities for buying and selling. Some of them have a feature called Trailing Stop, which is a kind of Stop-Loss mobile, ie, the stop-loss varies, following the money if you're winning, reducing the loss if the trend reverses. The vast majority of EAs is bad, does not work as promised, but there is a minority that works and produces profit, between 1 and 10% monthly. Those who can pay more are risky and can lose a lot too. EAs can use money management techniques or open positions with predetermined batches that can be user-defined.
     
  2. Markllee30

    Markllee30

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    Thanks for your useful information!
     
  3. sindarin

    sindarin

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    The vast majority of EA is bad because it is not updated by the vendor and if you get that EA i suggest just leave it and change to the newer one or the one that owned by trustable vendor. or if you can just use your own EA, and it will be more realiable since you are the one who set the configuration.
     
  4. jackcm

    jackcm

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    You forget that EA works depending on technical indicators. Signals are totally provided by technical indicators. Therefore, those signals are not trustful and it cannot be compared with premium signal providers.
     
  5. Decub

    Decub

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    Well, so many people might have divergent views as to the meaning of EA but in a more collective and generalized form which has a lot to do with its explanation conventionally. It is a flexible and dynamic software downloadable from brokers' sites and which is written for the meta trader in order to advise the trader. I chose to call it a dual function software as it can be programmed to advise the client (trader) or trade automatically on a live account.
     
  6. kaiceaziz

    kaiceaziz

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    Expert advisor i think it s the same as market indicator. I really didnt trade since a year , but as i remember a friend of mine sent me an indicator to my gmail. Asking me to install it to my metatrader. The indicator helps me sometimes and sometimes fools me.
     
  7. naninov

    naninov

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    i really have no kind of interesting on EA for trading, i don't know why but i just feel confident trading manual using my own analysis, some say that EA only work well on sideways market and when the trend continuation come the EA will burn your account
     
  8. Cutiekc

    Cutiekc

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    Yes EA mean forex Expert Advisor but an add-on software which generates signals and also trades on behalf of a traders. This are mainly used when a trader is not perhaps having the adequate time to trade and really have the ability. So then this EA is been introduced to trade on a trades behalf.
     
  9. kaiceaziz

    kaiceaziz

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    you mean when i dont have time ea will trade for me? Then i think its kind of robot and different from indicators. @ naninov , what analysis do you use instead of EA. ?
     
  10. Cutiekc

    Cutiekc

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    Yeah a roboot that trades on your behalf but the using of it does not mean that you will be having more chances pf making profits because your knowledge as a forex trading still counts on that. So better do it the manual way than using roboots also its expensive.
     
  11. gkintl

    gkintl

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    The most important advantage in using EA is that emotions are cut off totally from trading decisions. Most trading errors are committed due to impulsive decisions. In this regard EA would assist a trader succeed. On the other hand, forex being a dynamic market, evolves continuously. Thus, no particular program works perfectly for ever. Thus, it requires fine tuning always. Unless and otherwise a trader understands the same, EA will not be of great help to him.
     
  12. Master Forex IB

    Master Forex IB

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    You may say that EA are way of trading without emotions but we have not full control on EA .They are soft ware some times work good. If market conditions arenot according to the formulas feedin them what will happen ? Obviously an unexpected loss .I like just manual trading .EA are not perfect all the time you trade with them.
     
  13. Markllee30

    Markllee30

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    Expert advisor is an automated system that trade for us by adopting strategy that best suit us. EA is ve good for those who don't have mush time to analysis and trade.
     
  14. gkintl

    gkintl

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    Complex EA's use artificial intelligence. It may be either a genetic algorithm or artificial neural network. In both cases several 1000's of strategies are analyzed within a second to arrive at the most profitable method. Artificial neural network in particular has the ability to mimic learning capacity of a human brain. Under such a scenario, the EA is very little affected by the dynamic character of forex market. Only ordinary EA's fail to read the market after few months. EA's using artificial intelligence is very hard to create. However, it will last longer.
     
  15. Decub

    Decub

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    Nice to hear about EAs with AI in Forex and that could be some sophisticated trading software. One might say that there are more to EAs than an average trader or even user knows. I used to see them as just the everyday simple robots that serve in place of manual trading.
     
  16. sindarin

    sindarin

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    And will give profit for traders if we can use it wisely with offering a nice amount of profit. The best thing we can do with EA that we don't have to control our trading anymore and let EA work for it, but still we need to monitoring it.
     
  17. Decub

    Decub

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    EAs has got so many sides to its story and so many different people have different interpretation of what they think an EA is in terms of execution of that job which is to trade on a trader's behalf. While I see EA as something that can make you profits as well as make you lose too, there are those who have EAs as though they would trade themselves. I think the effectiveness of an EA lies on the user himself.
     
  18. Pettyeve

    Pettyeve

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    When you are using an expert advisor to trade, you should make sure that the expert advisor is the one that is programmed for that type of trading. When you are scalping with an ea, it is better to use a scalper robot because that is the one programmed for the market.
     
  19. Tom Latham

    Tom Latham

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    Thanks for your explanations! By the way, do you have good experience on news trading? Or you stop your EA during the high voltage market?