Features of working with Forex trading advisors, pros and cons of such trading

Expert Advisor (EA), which is also commonly called advisors for automatic trading on the stock exchange, are becoming more and more popular among traders every year.

These programs not only help to automatically make money on Forex, but also relieve the trader from constantly sitting in front of a computer monitor, thereby saving time and nerves.

However, there are still many skeptics who doubt the effectiveness of this tool, stating that the advisor often becomes the reason for losing the deposit.

But the reason for the failures lies not so much in the scripts themselves, but in the wrong approach to their use.

Today, Expert Advisor is used in its work not only by individual investors, but also by entire investment funds with a capital of several billion dollars. But still, each trader must independently evaluate the pros and cons of working with such programs.

Advantages of working with automated advisors

As always, let's start with the pleasant things, with the advantages that using experts when trading on the Forex or stock market gives:

Comfort and time saving - the main time costs are present only at the first stage when setting up and testing a new robot. Afterwards, the program itself analyzes the market, opens trades and places stop orders. Trading takes place 24/7, which is simply physically impossible with manual trading.

Wider capabilities - the advisor can be installed simultaneously on several assets or on several trading platforms. Many scripts can open and monitor several hundred orders daily, which is quite difficult to do manually.

Lack of emotions - there are quite a lot of effective strategies that begin to bring losses only because of the human factor; the investor succumbs to the influence of emotions and does not follow the rules of the strategy. Robots do not have this drawback; they clearly carry out the prescribed algorithm of actions.

Wide testing possibilities - before using Expert Advisor on a real account, you can “drive” it not only on a demo account, but also test it on any historical period. And then draw conclusions when the adviser shows the greatest performance efficiency.

Speed ​​of work - one of the reasons for the increased popularity of robots was the emergence of strategies requiring lightning-fast reactions. scalping advisors are the most popular .

Disadvantages of Using Expert Advisors to Consider

Despite the large number of advantages, Expert Advisor also has a number of quite important disadvantages that should be taken into account when using:

Preliminary setup – before working with almost any script, you should configure its operation for the selected currency pair. Test the program on history and let it work on both demo and cent accounts. This process is not always an easy task and novice traders may not be able to cope with it.

Control over non-standard situations - even if you have carried out extensive testing and adjustments, market situations may arise that were not observed during testing. As a result, the advisor will behave unplanned and begin to open unprofitable trades. How to test an advisor .

Therefore, despite the fact that the advisors are called automatic, you will still have to control their work - turn them off during periods of increased volatility or low liquidity of assets.

Using VPS servers – for greater efficiency of advisors, it is recommended to use VPS servers; this will eliminate the need to constantly keep your home computer on. Today you can rent such a server for $15-20 a month, and some brokers even provide free VPS servers . But again you will need to complete all the settings.

Safety rules when working with advisors

If you have taken into account all the pros and cons, you should remember a few simple rules to help you avoid losing your deposit when working with robots:

Do not trust Expert Advisor - no matter how expensive the purchased robot is, you cannot leave it without control. Before installing on a real account, you should conduct mandatory testing.

Do not use advisors without stops - that is, refuse to use scripts that do not provide for setting stop loss and take profit. It is also desirable that there be a setting to limit the number of unprofitable orders or the amount of losses.

Limit the amount on deposit - no matter how much you want to earn more, do not trust one advisor with all your money. It’s better to keep your funds in another account or use two different robots.

There is a misconception that advisors are intended for beginners in stock trading, in fact, it can be said that it is a professional tool that requires some experience in using it.

Useful links on the topic:

Free advisors - https://time-forex.com/sovetniki

Test results - https://time-forex.com/test

Rating of profitable advisors - https://time-forex.com/sovetniki/reyting-sov