Types of Forex advisors
If you start learning stock trading from books by famous traders, you will probably never come across the
advisors section. The fact is that the age of the books that almost all beginners follow, their learning path is the age of the traders themselves, and sometimes even older.
However, time passes, and progress also does not stand still. Therefore, starting with the active development of personal computers, stock trading began to move into a new era of its development.
Now it is very difficult to imagine a trader sitting not at a computer at home, but somewhere with a piece of paper under the door of a brokerage company. New technologies and software development have led to new types of programs that modern traders actively use. The most popular aids for profitable trading are Forex advisors .
Nowadays, the number of advisors that are freely available can simply make your head spin. If you don’t know what an advisor is, then let me remind you that this is a program for a specific trading platform, the code of which contains a specific trading strategy, with the help of which the advisor trades without the intervention of the trader.
Essentially, we are dealing with a robot that is capable of making transactions according to clearly defined rules and clearly imitating our trading. If your strategy is profitable, then the robot will be profitable. Nowadays it is not a problem to find a Forex advisor, since even on our website you can download it for free.
Before you start choosing a suitable expert for yourself, you should understand what types of advisors exist?
And so let's start from the simple. Firstly, advisors are divided into fully automatic and semi-automatic. The former differ from the latter in being completely autonomous, so there is no need for the trader to interfere with the work. The semi-automatic machine is designed as a trader’s assistant, with the help of which he can perform routine work. For example, placing stop orders and moving orders, setting profits.
Experts are also divided into indicator and non-indicator.
To enter a position, indicator advisors Forex indicators , and it is not necessary to enter a position, since it is possible to close a position using an indicator, as well as place stop orders. Simply put, an advisor is an indicator if at least one indicator is involved in its work.
A non-indicator advisor is an expert that uses a purely mathematical calculation model to enter positions.
Both indicator-free and indicator-based advisors can be divided according to money management. In terms of money management, the most popular are martingales, grid traders, lockers, averagers, as well as classic experts that use stop orders and profit.
Martingales are one of the most popular cash registers among experts, a feature that is the complete ignoring of stop orders. The essence of martingale is that in case of a losing position, the advisor opens a double lot and, in case of victory, wins back the losing position. Such discoveries will continue until the expert wins back, or you don’t have enough money and the account is lost.
Grid experts are experts who place networks of orders above and below the price, and their essence is that wherever the price goes, it falls into the network and the advisor takes profit from the movement up or down. The weakness of this kind of experts is a flat, when the price begins to catch both buy orders above and below the price.
Flip-floppers are advisors who, when a stop order is triggered, flip their trade and enter in the direction of the stop with a double lot.
All the experts described above are the most popular, however, the most aggressive. Advisors are also divided according to the trading strategies they use.
Trend advisors are experts based on a trend strategy.
Scalping experts are experts who work with market noise, often opening positions with a small stop order and profit. Channel experts are designed to work in flat markets, the essence of which is trading in a narrow price range. Examples of advisors for scalping can be found at the link http://time-forex.com/skalping/sovetnik-skalping
In general, if you understand the type of advisor, you will be able to see its weaknesses. For example, channel experts give a lot of false signals in a trend, and trend experts constantly catch stop orders in a flat. Expert Advisors are considered the most optimal if they are based on all three types of trading strategies that complement each other. Thanks for your attention, good luck!