Using Expert Advisors

Expert Advisors (also known as Robots or Systems) are pieces of computer code that one can install on their computer to automatically trade the Forex market. The Expert Advisors are downloaded onto the MetaTrader 4 platform and scan the prices for good opportunities to buy or sell currency pairs. A major advantage of forex robots is that the individual using them doesn't have to manually place trades in the Forex market, it will be done by the forex robot automatically. This saves people the time of having to research different currency pairs, when to trade them, which ones to trade, and how to trade them.

What makes a good Expert Advisor?

Expert Advisors are written in a computer language called MQL4. These Robots, when activated on a Meta Trader 4 platform, respond to incoming price data by buying and selling different currency pairs. An example of a forex robot may be; Buy the EUR/USD currency pair when the price makes a new weekly high, or, sell when the currency pair makes a new weekly low. Some robots are certainly better than others, that's why it is important to know what to expect when purchasing or using a forex system. The ultimate measure of how good a forex system is, is how much money it can make in its trading.

A good robot will make consistent money while making few losing trades and have a low drawdown (loss of money). When looking at different forex systems, there are 3 primary factors one should consider; back test results, forward test results, and optimization results, those factors are explained below.