Best Expert Advisors and Forex Robots in 2024
The forex market is not always predictable. Unexpected events or decisions can put traders in difficult positions facing enormous losses. Sometimes, these decisions or events are not within the control of traders. While at other times, it is due to their emotions such as greed or fear. Emotions cause them to make bad decisions that affect their trading negatively.
There was a time in forex trading when traders had to rely completely on their wits and self-discipline. Wits to exert some level of control over their emotions so that their trading decisions remain logical. Yet, there are now expert advisors (EAs) and forex robots to help with trading decisions. The only conundrum facing traders interested in using EAs and robots is choosing the best ones. EAs and robots that suit their respective trading styles.
The Best Forex Advisors and Forex Robots in the Market
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What is an Expert Advisor?
A forex expert advisor is a computer program that traders can use to automate forex trading. This is important because the forex market is open 24 hours a day. It is unrealistic for a human being to keep monitoring the market continuously without getting exhausted. This is where an automated trading system like an expert advisor comes in. An expert advisor keeps track of the market so that the trader is informed of the best time to make a trade in the market.
Using forex expert advisors does not require extensive trading knowledge and experience. The most important thing is for traders to have the ability to differentiate. Differentiate between the best expert advisors in the market and those that are inefficient. One of the good things about forex EAs is that they can be programmed. EAs can be programmed to generate trading signals automatically. Also to subsequently notify the trader of trading opportunities.
They can also be used on several forex trading platforms. Some of these platforms allow traders to customize their trading systems. Customize to fit their trading strategies. Expert advisors tend to be highly compatible with the MetaTrader 4 and 5 forex platforms. The programming language used in creating EAs is known as MetaQuotes Language (MQL). MQL is a major component of the MT4 & MT5 trading platforms. Traders can always use some of the EAs on these platforms. Also can create a new one based on their preferred trading parameters.
As mentioned earlier, a forex robot is another automated trading system. It is similar to forex EAs because it is also a program. A program that is used to identify market patterns and generate trading signals. However, strictly speaking, it is slightly different from forex EAs. Forex robots can also trade automatically on behalf of a trader. An expert advisor requires the manual approval of a trader before executing trades. But then again, both are sometimes used interchangeably. Many forex EAs can perform more functions than just the generation of trading signals.
There are preset rules on which all forex expert advisors are based. There are still variations in the rules that EAs follow for trading. As to be expected with automated software, EAs mitigate the possibility of making illogical and emotional trading decisions. Such decisions are a common problem that affects novice traders. Since EAs are designed to adhere to a very strict set of rules, this cuts out any unnecessary human interference.
Purchasing EAs is not difficult. They can be obtained easily online. Traders have to be careful so that they do not end up with an ineffective forex expert advisor. Once purchased, installing the EA into the trading system employed by the trader is easy. No advanced technical knowledge is required.
The best expert advisors can be programmed to function in a variety of ways. Function through the utilization of a set of technical indicators like moving average. EAs can also look for significant trends and breakouts. Through the application of different indicators, the best forex expert advisors can engage in market analysis. The analysis includes the behavior of different financial assets. Then can generate signals regarding trading opportunities.
Some of the best expert advisors are designed to take complete control of a trader’s account. In this case, the current account balance of the trader is examined so that the portion of the balance that will be risked in the market can be determined. Usually, the portion that will be risked is kept at 1% to 2% of the trader’s account balance. Also, these best expert advisors can evaluate the trades being executed. Determine if the trades should involve any of the following: a stop-loss, take-profit, or a trailing stop.
Once the necessary information has been made available to forex expert advisors, the trader will be notified. Prevailing market conditions are also considered. The trader will be notified of the best time to open a specific trading position.
All the best expert advisors are categorized under five major groups:
- The Breakout Expert Advisor. This category of expert advisors collects information on the support and resistance levels. Sends instruction to open a trading position immediately after price breaks through predefined levels of support and resistance. The trading position is then closed before the price reaches the levels of support or resistance again.
- Scalper Expert Advisor. EAs in this category are designed for scalping. This means they aim to secure small profits for the trader through many small and short-term trades. As a result, such expert advisors will open and close a large volume of trades throughout a trading day. These EAs are capable of trading around 400 to 500 times each day depending on the conditions of the market.
- The News Expert Advisor. As the name implies, this class of expert advisors focuses on political trends, financial news, and macroeconomic events. News that could affect trading conditions in the market. Therefore, the trader can use a news EA to profit from the fluctuations caused by the news events.
- The Hedge Expert Advisor. Expert advisors in this category are those that apply the principle of hedging. Hedging is a risk management strategy that helps traders to compensate for the losses on investments. Hedging work by taking a contrasting position on a related asset. As a result, Hedge EAs specialize in helping the trader to minimize losses on one position. While helping maximize profits in the opposite position. The aim is to capitalize on the difference in price between two financial assets without being affected by broad movements in the market.
- Adaptive Expert Advisor. Adaptive EAs monitor the market closely as their actions are determined by movements in the market. With adaptive EAs, the trader only needs to set the parameters. EAs will make the appropriate trading decisions on behalf of the trader based on the set parameters.
Factors to Consider when Choosing the Best Expert Advisors
There are numerous expert advisors that can be used for forex trading. They have different qualities and levels of effectiveness. This is why traders need to consider some important factors when trying to select among the best expert advisors available. Below are the factors:
Type of strategy
The best expert advisors use different strategies with varying levels of risk. Some of them are based on conditions in the market such as volatility and direction of movement. It should be noted that it is not possible to manually execute many of the strategies used by EAs. Some of the most popular strategies used by the best expert advisors are:
- Grid: this involves designating buy and sell orders simultaneously at a set price. Traders can manually execute this strategy, its accuracy and efficiency in placing trades are very stellar.
- Martingale: this involves increasing the size of a trade after a losing trade in an attempt to recover the losses incurred. This can be extremely risky because, without proper management, the trader’s entire trading capital could be wiped out.
- Scalping: this strategy focuses on executing short-term trades in high volumes with the aim of making small profits by quickly moving in and out of trades.
Expert advisors tend to have a significant level of drawdown. It plays a crucial role in determining the initial capital that the trader will need for trading. It is important to know the drawdown and this can be done by asking the EA developer or through backtesting.
Level of risk tolerance
The level of risk involved with the best expert advisors varies based on the type of strategy that is employed. Risk and profit go together, then an expert advisor with a high percentage of ROI is likely to have a high level of risk. Once again, carrying out backtesting will allow the trader to determine the risk level of an EA. Will determine if it is within the trader’s risk tolerance range.
Traders should be able to determine the level of profit they will earn from investing in a specific expert advisor. Considering expert advisors are there to increase the chances of traders making profits in the forex market. Any EA that will not produce consistent profits relative to the money spent on purchasing it is not worth it. The profitability level of an EA can be determined by examining the independent test results of that EA. The test results shown by EA sellers are mostly used as marketing tools and cannot be trusted.
Pros and Cons of the Best Expert Advisors
- Elimination of emotions from forex trading. Emotions tend to play a large role in trading decisions. Despite the control over emotions that many traders think they have, the decisions of traders in the forex market are still affected by emotions. Two of the most prevailing emotions in trading are fear and greed. They weigh heavily on the decision-making process of traders. More often than not, the losses incurred by traders in the market are due to any of these two emotions. This is why they need to be kept under control and the best EAs do exactly that. These EAs are not affected by emotional barriers while performing their functions in the market. They have been programmed to follow and implement a predetermined set of rules. Therefore, traders are less reliant on their feelings or emotions when they are trading.
- 24/7 trading. It is difficult for traders to continually watch the market for 24 hours a day every week. There are other activities that traders will need to do during the time they are not watching the market. Some profitable trading opportunities may appear. By the time the trader is back, such opportunities might disappear. However, the best expert advisors ensure this is not the case. They can help traders to maximize their efficiency and minimize the time required to monitor events in the markets. As a result, the opportunities that present themselves can be capitalized on effectively.
- Increased speed of execution. The best expert advisors are built to carry out the necessary research. Research to discover prospective profitable opportunities within mere seconds. This is achieved by market surveys, analysis of various factors, and determining the probability of a profitable trade. This high speed means many trading opportunities are seized upon by the best expert advisors. This is quite crucial for all kinds of traders. Whether they are day traders, scalpers, swing traders, or position traders. The best expert advisors make it possible for traders to quickly react to trade setups. Trades are executed in the most efficient way possible.
- Helps to maintain discipline. Truthfully, achieving anything in life without a modicum of discipline is impossible. With trading, it is even more difficult. Difficult to achieve success consistently making due to the whims and feelings that traders are subjected to. As a result, they are sometimes unable to make difficult decisions. This usually results in losses in the forex market. On the other hand, the best expert advisors follow the parameters that they are based on. Strictly follow the programmed commands. This way, traders are forced to learn how to make difficult decisions and stick to them. Allowing them to imbibe discipline and enhance their chances of success as they continue to trade.
- Backtesting becomes easier. The best expert advisors make backtesting much easier. Increase the speed of the testing process for several strategies while also making trading decisions. The whole process is completed within seconds. For a trader, it is cumbersome to complete as it will take a long time and substantial effort. This is possible for the best EAs because they can store a large quantity of data. Data can then be used to test out various strategies before the best one for the trades is chosen. Furthermore, the trader can carry out multiple optimization tests. Tests will improve the performance of the expert advisor being used.
- It saves traders the need for expertise. This applies particularly to novice traders or those with little trading experience. They can still trade profitably through EAs even with little to no expertise. The EAs will give them recommendations and execute them on their behalf.
- Subject to technical problems. Forex EAs are run from personal computers. This means several technical issues can arise which will subsequently affect the efficiency of these EAs. Some of the technical issues include power outages, software updates, hardware failures, and connection problems. Also, other related problems can directly affect the functionality of the best expert advisors. This is why these EAs need to be monitored consistently. Monitored that there are no technical issues within them or in the setup of the trader’s infrastructure. The internal workings of the expert advisor need to be monitored. Monitored to ensure that trading signals are being generated according to the trader’s original parameters. Also, make sure orders are being correctly routed.
- Limited to only one instrument. The best forex advisors are unable to implement trading strategies in which there are multiple instruments involved. This is because they are designed to handle trading on one currency pair at a time. Therefore, the trader’s possibility of diversification becomes reduced. The level of risk exposure is increased.
- An additional cost of VPS. Expert advisors function optimally when deployed from dedicated servers. These are known as virtual private servers (VPS). VPS lessens the burden of the technical issues associated with using expert advisors. Allows expert advisors to be deployed from a stable network thus aiding the speed of execution. It also provides traders with a high level of flexibility since VPS is accessible from any location as long as there is an internet connection. However, all of these benefits come at a cost that should be considered when purchasing any of the best EAs. This is why a substantial amount of capital is needed to use the best expert advisors for forex trading.
Basic Rules for Using the Best Expert Advisors
To use the best expert advisors, some rules need to be followed. They will enable traders to make effective use of these EAs while also increasing the chances of having a higher ROI from forex trading.
Use a demo or trial version
This allows the traders to understand how a particular EA adopts instructions and carries out data analysis. As well as understand the execution of trades. It will not be wise to commit money to an EA without testing. This is why it is advisable to use either the trial or demo version.
Adopt strategies developed via backtesting
Backtesting enables the development of suitable trading strategies for forex trading. These strategies should not be deviated from when the trader is relaying instructions to the EA in a real-time environment. Since these strategies have been shown to deliver results before, then there is a higher chance that they will still be able to generate favorable results in the future.
Always be aware of the MetaTrader Connection
It has been mentioned earlier that EAs are subjected to technical issues. Issues such as connectivity and power outages can interrupt the EA’s functionality. Therefore in using one of the best expert advisors, the onus rests on the trader. Ensure that every necessary component is working well so that the connection to MetaTrader is not disrupted. Things like keeping the windows opened on the MT4 workspace to a minimum, having a secure internet connection, and having a unit of uninterrupted power supply (UPS) will go a long way in helping to maintain a reliable MetaTrader connection.
Provide relevant and appropriate instructions
The instructions given to forex expert advisors play a crucial role in the efficiency of their performance. Therefore, if the instructions and parameters are inadequate, then the results delivered by the EAs will be poor. Traders need to be sure of what they want the EA to do and provide the necessary instructions. For instance, if a trader wants the EA to open a trading position following a breakout and then close it just before it gets to the resistance level, the instruction to the EA should encompass collecting information on support and resistance levels.
There are many forex expert advisors that traders can choose from. A large number of them are unreliable which is why traders must take their time to analyze different EAs before making a choice. Checking through customer reviews and expert opinions will enable traders to make informed decisions. Decisions on the best expert advisor that will suit their trading styles.
How much do Expert Advisors Cost?
Examining some of the best expert advisors in the market, the price range is clear. Depends on the type of EA and the percentage of yield that traders can expect. Generally, the cost of purchasing one of the best expert advisors ranges between $40 and $1000 although some can go as high as $3,000. The trader should check for the price of a particular EA. Then determine if it is within the range of what he or she can afford.
Searching for expert advisors online will produce several options. Each one has peculiarities that distinguish them in a bid to attract buyers. Yet, the trader has to carry out in-depth research on potential options before deciding on a final choice. Getting the opinions of professionals. Trying the potential EAs on a demo account. This will allow traders to have an idea of how a particular EA works so that they can know what they are buying.
As a final word of advice, you cannot afford to take everything you see with EAs at face value which is why articles like this and guides on the software used to design some of the best expert advisors are important. Do not risk your money carelessly on EAs without confirming their authenticity and performance levels.