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

Expert Advisors (EAs), also known as automated trading advisors, are becoming increasingly popular among traders every year.

These programs not only help you automatically earn money on Forex, but also free traders from the need to constantly sit in front of a computer monitor, thereby saving time and stress.

However, there are still many skeptics who doubt the effectiveness of this tool, claiming that advisors often become the cause of deposit losses.

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 not only by individual investors but also by entire investment funds with capital amounting to several billion dollars. However, each trader should still independently evaluate the pros and cons of using such programs.

The benefits of using automated advisors

As always, let's start with the good stuff: the benefits of using experts when trading on the Forex or stock markets:

Convenience and time savings – the main time investment occurs only during the initial setup and testing of a new robot. Afterward, the program automatically analyzes the market, opens trades, and sets stop orders. Trading takes place 24/7, which is simply physically impossible with manual trading.

More extensive capabilities – the advisor can be simultaneously installed on multiple assets or trading platforms. Many scripts can open and manage several hundred orders daily, which is quite difficult to do manually.

Lack of emotion – there are many effective strategies that begin to incur losses solely due to human error, where the investor succumbs to emotion and fails to follow the strategy's rules. Robots are free from this drawback; they strictly follow a prescribed algorithm.

Extensive testing options – before using the Expert Advisor on a live account, you can test it not only on a demo account but also on any historical period. Then, you can draw conclusions about when the advisor demonstrates its greatest effectiveness.

Speed scalping advisors are the most popular .

Disadvantages of using advisors that should be considered

Despite its many advantages, Expert Advisor also has a number of significant disadvantages that should be taken into account when using it:

Preliminary setup – before using almost any script, it should be configured for the selected currency pair. Test the program on history and let it run on both demo and cent accounts. This process is not always an easy task, and it can be challenging for novice traders.

Monitoring for unusual situations – even if you've conducted extensive testing and fine-tuned your EA, market conditions may arise that weren't observed during testing. As a result, the EA will behave unexpectedly and start opening losing trades. How to test your EA .

Therefore, despite the fact that advisors are called automatic, you will still have to monitor their operation - disable them during periods of increased volatility or low asset liquidity.

Using VPS servers – for greater efficiency of your advisors, we recommend using VPS servers. This eliminates the need to keep your home computer running constantly. These days, you can rent a VPS server for $15-20 per month, and some brokers even offer free VPS servers . However, you'll still need to configure all the settings.

Safety rules when working with advisors

Once you've considered all the pros and cons, there are a few simple rules to keep in mind to avoid wasting your deposit when trading with robots:

Don't trust Expert Advisor – no matter how expensive the robot you buy, you can't leave it unsupervised. Be sure to conduct a thorough test before installing it on a real account.

Avoid using advisors without stops —that is, avoid using scripts that don't allow for stop-loss and take-profit settings. It's also advisable to have a setting to limit the number of losing orders or the amount of losses.

Limit your deposit amount – no matter how tempting it may be to earn more, don't trust all your money to one advisor. It's better to keep some of your funds in another account or use two different bots.

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

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