Forex Expert Advisors - What Are They and How Do They Work?

Forex expert advisors are currently extremely popular amongst the forex community. It's not hard to see why because many people soon realise how difficult it is to actually make money from forex trading so they turn to automated forex robots, which is essentially what a forex expert advisor is.

Let me explain to you how forex expert advisors actually work first of all. Most of these systems are developed to work with Metatrader 4, the popular charting and trading platform, so once you buy one of these expert advisors all you do is download the software and configure it to work with Metatrader 4. This process usually takes no more than a few minutes at most.

You are then ready to set it up to start trading automatically. You can either start trading with real money or you can take the wiser option of testing it out on a demo account initially before letting it trade with real money if it's profitable.

So what are the advantages of using a forex expert advisor to trade the markets?

Well the major benefit is that you no longer need to come up with your own profitable trading system. The expert advisor was designed for this purpose. They have been designed to find high probability set-ups in a certain way, and they will keep trading these similar positions over and over again, hopefully resulting in big profits. All the emotion is taking out of the whole trading process, which is very often the downfall of so many forex traders.

Of course not all forex expert advisors end up being huge money-making machines, which is why you should choose your EA carefully and test it out vigorously before trading with real money. A lot of the EAs sold on the internet look great when you read their sales page, but many of them quote backtested results on demo accounts which can therefore be misleading because they very often do not reflect real-life trading conditions such as widened spreads during news times, price spikes, etc.

You ideally want to look for expert advisors that the developer actually uses themselves, otherwise you know they're just trying to make a quick buck by selling a robot that isn't actually very profitable. If you can do this, then there is no reason whatsoever why people from any background cannot start enjoying the vast profits that can be made from forex trading because forex expert advisors can make this a reality.

Click here for reviews of popular forex systems and software such as Forex Roboteer and Kiss Futures.