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 .

 These days, the number of freely available advisors can be overwhelming. If you're unfamiliar with an advisor, it's a program for a specific trading platform, embedded with a specific trading strategy that guides the advisor's trading without the trader's intervention.

Essentially, we're dealing with a robot that can execute trades according to clearly defined rules and accurately imitate our trading. If your strategy is profitable, the robot will be profitable too. Finding a Forex expert advisor isn't a problem these days, as you can even download one for free from our website.

Before you start choosing the right expert, you should understand what types of advisors exist

So, let's start with the simplest. First, advisors are divided into fully automated and semi-automated. The former are completely autonomous, eliminating the need for the trader to intervene. Semi-automated advisors are designed to assist traders, enabling them to perform routine tasks. For example, setting stop orders, moving orders, and setting profit targets.

Experts are also divided into indicator-based and non-indicator-based.

Indicator-based advisors use a trading strategy based on Forex indicators . However, entering a position isn't mandatory, as they can also close a position based on an indicator and set stop orders. Simply put, an advisor is considered an indicator-based advisor if it uses at least one indicator.

An indicator-free advisor is an expert that uses a purely mathematical calculation model to enter positions.

Both indicator-based and indicator-based expert advisors can be categorized by money management. The most popular money management options include martingale, grid, lock, and average strategies, as well as classic experts that use stop orders and take profits.

Martingales are one of the most popular strategies among experts, characterized by their complete disregard for stop orders. The essence of a martingale is that if a position is losing, the advisor opens a double lot and, if it wins, recoups the losing position. These openings will continue until the advisor recoups the position, or you run out of money and your account is wiped out.

Grid traders are experts that place grids of orders above and below the price. The idea is that no matter where the price moves, it's caught in the grid, and the expert advisor profits from the up or down movement. The weakness of these experts is flat trading, when the price starts to trigger both buy orders above and below the price.

Reversal experts are advisors that, when a stop order is triggered, reverse their trade and enter the stop order with a doubled lot. All the experts described above are the most popular, but also the most aggressive.
Advisors are also categorized by the trading strategies they use.

Trend advisors are experts based on a trend strategy.

Scalping experts are experts that exploit market noise, often opening positions with small stop orders and profits. Channel experts are designed for flat trading, which means trading within a narrow price range. Examples of scalping experts can be found at http://time-forex.com/skalping/sovetnik-skalping

In general, if you understand the type of expert advisor, you can spot its weaknesses. For example, channel-based experts generate a lot of false signals during trends, while trend-based ones constantly hit stop orders during flats. Expert advisors are considered to be the most optimal if they are based on all three types of trading strategies, complementing each other. Thank you for your attention, and good luck!