Why are Forex expert advisors needed?
To make trading on the Forex market not only profitable, but also comfortable, many traders use automatic trading systems, or, as they are also called, Forex robots or EA (Expert Advisor).
What are EA for? The answer is very simple. If you want to not miss a single opportunity to open or close a profitable transaction, then you need to watch the market around the clock, which no one is able to do.
In addition, the trader does not always manage to cope with his emotions, and he makes trading decisions based not on calculation and logic, but on his own feelings - for example, a feeling of excitement or, conversely, excitement. Often such transactions are unprofitable. An Expert Advisor does not have emotions, which means that the human factor can be immediately excluded from trading, which greatly increases the effectiveness of trading.
There are many things to consider when choosing the most profitable and result-oriented EA. For example, it is strongly recommended, before choosing an expert advisor, to pay attention to profit / loss, risk / profit, stop-limits and other relevant statistics by conducting a test inside the platform on historical data. Even if you choose an expert advisor with an excellent reputation, there is always a risk of loss, nevertheless. Thus, it is also important to find out the degree of risk that you are willing to take.
Before using EAs in real trading, you need to test expert advisor - for example, on a demo account or on archive quotes.
Please note that the quality of the history of quotes for different forex brokers is different, which can cause serious discrepancies in the results of testing one expert advisor on accounts from different brokers.
This is necessary in order to understand how effective one or another automatic program is and not to risk one’s own means. After all, if it turns out that on a demo account the EA proved to be not the best and did not bring you the expected profit, then you should not use this expert advisor in real trading (or you need to better configure its work). But if you see that the expert advisor is showing good trading results, then it should be noted.
Testing an expert advisor before use is a prerequisite for profitable trading.