subject: What Is An Expert Advisor? [print this page] An expert advisor is basically a computer program that is designed to be able to read sets of Forex trading signals that comes from Forex indicators, in which helps determine if one should buy or sell a currency pair. Since it is a computer program, it eliminates the psychological aspects that humans would show that could affect trading decisions.
An expert advisor is developed by people who know the trades well and are able to write the strategies into the program. They function, in a way, like an assistant to help you conduct trades without having the need of your presence. It can work based on the default signals preprogrammed, or you can adjust the trading signals to match the trading style you would like. They are usually built on MetaTrader 4 platform, which allows traders to customize or edit the program in a certain way.
One of the biggest perks of the program is that it is unemotional. It does not feel anger, fear, tired, and greedy, hence, allowing decisions to be rational and logical, which is crucial to avoid mistakes during trades. Also, because it does not feel tired, it does not make human errors.
This purpose this program is made is so that Forex trading operations can be sped up. When you manually make trades, you will need to repeat a lot of processes to make a trade. You will also need to be able to monitor all currencies and their changes. As these changes can come simultaneously, it is important for the trader to make a trade quickly before currencies change. With the program, all these can be done automatically, saving your time and workload.
Although you can save a lot of time and money, and avoid losses with a good version of the program, it is still only mechanical. It does not have the advantage humans have, which is the ability to think of new strategies when they see fit it is only a program to help you ease the workload.
