It is possible to trade Forex both manually and automatically. In the first case, a trader analyses the market situation and searches for felicitous moments to open trading positions by himself. The second option means the trader doesn't participate in the trading process. His only responsibility is to start the trading robot which analyses the market and searches for moments to enter it by itself.

How to use an expert advisor?

A lot of newbies are interested in how the Forex robot works. Traders want to know the principles of trading which are used in expert advisors. And also a lot of traders wonder how safe is such kind of work and what are chances of financial risks. Usually, newbies are fond of trading using trading robots. Зrofessionals of the currency market rarely prefer this method of trading. In most cases, they are engaged in the development and testing of such scripts and robots.

Thus, the quality of work of any trading robot depends on the professionalism of its author. Regarding principles of the Forex expert advisor, it is based on a specific algorithm.

As the robot is created by a man, the standard scheme of trading which consists of the following steps is on a basis of it:
  • Analysis of the market. To fulfil it, technical indicators integrated into the advisor are used. They analyse the market situation and give signals to open positions.
  • Orders opening. It is performed according to the set algorithm. Positions are opened when corresponding signals are received from two or more indicators. Orders are closed when stop-orders (stop loss and take profit) are triggered or when the signal about the upcoming trend reversal is received.
Forex advisors: pros and cons

Forex advisors work on the basis of already known strategy the choice of which is determined by the particular software developer. Newbies should not expect that trading will be performed according to any unique tactics. Ready variants of strategies are used for automatic trading such as scalping or trading on the breakdown.

It is worth to understand that the advisor should be set according to your currency pair, deposit and trading period.

The advantage of using Forex advisor is that this kind of work allows to completely exclude the influence of a human factor on the result of orders. Trading is performed according to the accurate algorithm. The average profitability of automated trading programs reaches 100% of the deposit amount per month.

The disadvantage of trading robots is that errors occasionally take place in their work. It is very hard to find such an advisor which would be able to work without high financial risks at least for a year.

It is worth to understand that the advisor should be set according to your currency pair, deposit and trading period. You can read how to use Forex advisors in the article "Rules of working with Forex advisors".

by JustMarkets, 2023.04.24

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