Participants Forex market can be divided into two categories, traders and trading robots (Expert Advisors). If the trader himself is analyzing the market, decide on entering the position, calculates the risk and potential profit, the adviser has the same function, but without the participation of the person to a predetermined algorithm.
But how does he do it? How does forex advisor? Many market participants do not even think about this question. In fact, understanding the functioning advisor is an important part of understanding the overall market. At the end of 2012, the agency published a Bloomberg survey data exchange trading, and so on robots share more than 60 % of all transactions. For beginners and questions about whether you can trust the real money trading advisor? After all, more and more in the direction of advisors see a lot of negative criticism.
Experienced traders themselves often try to make their automated trading strategy, they provide trade execution algorithm know their method, the Cubs are already well prepared counselors, and even didn't really understand the mechanism of it's trade. Because of this, most traders fail and the financial arenas, because the robot before entrusting money should be safe in the knowledge that his strategy is profitable and is under a reasonable basis, and dosn't trade at random while using some questionable martingale. Therefore, for the trader the question "How does forex advisor" should not remain unsolved.
So, the basic components of the EA forex trading it's the algorithm and input parameters (usually regulated). Since advisors are made by traders, or on behalf of the traders, then the mechanism of the action sequences and the same as that of normal trade. Consider how the forex advisor on the components:
- Analysis of the state of the market - the analysis of the market, the adviser relies on computer displays. EA can also analyze the price value based on what cost the resistance and support lines. The number of indicators counselor is different, sometimes a developer creates a unique indicators that are not in the terminal Metatrader.
- Trade - in a certain market environment indicators adviser and send signals on the basis of these data is open or closed trading positions. Also advisor himself can determine the level of take profit and stop loss depending on the market situation, again, and the values of the indicators.
- Strategy - the basis of each expert is defined trading strategy. This may be a trade off levels, breakdowns, trend trading, scalping and togas on. If you examine a lot of advisers, you will realize that their diversity is not so great. Points are based on generally simple strategies with low efficiency, paid advisers may be more complex trading algorithm. Win-win strategy had not been invented, so even the most profitable EA will make losing trades. The only indisputable advantage of the robot is a lack of emotion, a clear sequence of actions which at times hard to give a human trader.
With that as a forex advisor works, we analyze in detail. As trading robots are written by traders, the adviser and profitability depends level of knowledge, experience and skills of the trader who created it. According to statistics, the number of profitable traders only 5 %, respectively, and effective advisors about the same as you remember about it.
Now you know how the forex advisor, so finding a suitable for you in the cellar. Use the counselors, the algorithm steps which you understand, as you quickly realize how much potential it has, and how much you can bring.Social button for Joomla