Forex Trading Advisors

Forex Trading Advisors

Traditionally, trading advisors (also known as expert advisors) are associated with a special set of the programs for trading on Forex market. In the carrying out of transactions, this software (developed with the help of MQL4 programming language) first of all makes a detailed technical analysis of the current market situation, and then – performs all the relevant trading transactions. The direct involvement of a trader in this process is not compulsory. Moreover, Forex trading robots can do their work automatically and open transactions or just provide users with signals to buy or sell assets and raw materials. A trader, on the basis of his/her own experience, just has to decide – whether he/she wants to trade using the advisor’s signals or not.


Why have a Forex trading advisor?

Profitable Forex advisors are Automated Trading Systems that have been created to help users during their trading process. The use of the trading robots is quite beneficial for Forex traders – because such Forex robots are able to work around the clock. The trading robot will not rest and no emotions or nervous collapses will ever affect its execution. There is a statistical data indicating that only 12% of all traders on the securities market are real people, and the remaining 88% – trading robots. It is no wonder – because sooner or later, even the most emotionally solid person will get tired of being afraid of losing money, greed, steady-state stress and exhaustion. The trading robot, on the contrary, will never make a false step because of exhaustion – it acts under the individually preset algorithm created by the professional traders. The special settings for constant updating help to enter a transaction at the right time. The trading robot always stays cold-blooded and will stop its operation in case it is known to be bad – it will never hope for a sudden success. It’d rather open a new transaction and get some profits from it using precomputed algorithm.

All you have to do – is to adjust free Forex trading advisor in accordance with strictly defined algorithms, which will be used by the trading robot to get profits.

Trading advisors operating principle

Forex robots are specially developed by programmers under the guidance of trading specialists with the working experience on the exchange market. The trading systems they create are able to provide maximum profits with pretty small drawdown. The Forex advisor that is installed on the dedicated VPS server carries out the following actions:

  • Round-the-clock monitoring and analysis of the trading process – usually, you can supervise the operation of the Forex trading robot via your computer or via any other mobile device.
  • Notification of a trader through SMS, E-mail or ICQ – if any unforeseen situation arises during the trading process, the trading robot’s settings will be updated.
  • Some trading robots’ developers provide its customers with discounts for their products, as well as offer no-cost consultations from the professional traders.

Forex advisor types

Forex trading robots fall into the following types:

  • Trend advisors – these robots work under the algorithm that is adjusted strictly on the trend trading. Profitable Forex advisors are usually adjusted on long positions with high profits.
  • Scalper-advisors and pipser-advisors – the algorithm these robots use is suitable for trading with multiple transactions. They are often performed with a sizable lot and simultaneously close several pips in a single session.
  • Multicurrency advisors – these robots are suitable for different tasks: they can simultaneously execute their work with many currency pairs individually and collectively.
  • Martingale advisors (also known as “pyramiding advisors”) – these robots increase a lot after any transaction made without a profit. This type is considered to be one of the riskiest advisors on Forex.
  • Combined advisors – the algorithm of these robots can include functions of the different advisor types at the same time. They can combine such options as trend trading and multicurrency support.

Benefits of using Forex trading advisors:

Trading robotization

Forex trading advisor doesn’t need real people’s support when it opens transactions – it can do it in automatic mode, without human intervention. It makes expert advisors fully automated trading systems.

Immediacy of operations

Forex trading advisor performs operations in a split second, while the real trader usually needs more time to perform the same operation. This benefit becomes particularly relevant during the extreme changes of the exchange rate on the market, when the quotes may vary by several points per second. It is hard for a human being to make it to analyze the market and chart in such a short period of time, but the trading robot will handle it without difficulties.

Accurate computation

Forex trading robots have no such feature as the human factor that makes people make mistakes in market analysis. The computer program cannot make a mistake, for instance, it cannot enter 1-lot transaction instead of 0.1-lot transaction. The excellent accuracy of advisors minimizes the risk of such mistakes.

Multitasking functionality

Very often, in addition to their primary functions, Forex expert advisors provide traders with a number of extra features: different operation reports, possibility to change the robot’s settings, and those traders who are well-versed in programming can use a possibility to complicate the algorithm with no effect on its operation speed.


Advisors

How to trade with a Forex expert advisor?

  • To get started with a profitable Forex trading robot, you have to download and install MT4 trading terminal. Normally it is free-of-charge and can be downloaded from your broker’s web-site. If you haven’t chosen your Forex-broker by now, you should request the assistance from IAFT’s Support Service.
  • Now you should select the advisor you are interested in from the above list and click on “Download advisor” link. The download starts automatically. If it doesn’t happen, point to image or link, right-click it and select “Save target as…” option.
  • Save the file on C disk in Program Files directory, then – in the directory of the trading terminal you use (for example, MetaTrader), and then – in EXPERTS directory.

Installation of a free advisor

  • After downloading the setup file of Forex trading robot, please, launch MetaTrader 4 trading terminal.
  • Enter the login and password of your live account into the appropriate fields. It is worth noting that it is better to test Forex trading advisors on a demo-account in order to avoid the use of real money in the process of adjustment of the trading robot. If you don’t have a real trading account, you can create it – go to “File” section in the platform’s menu and select “Open a demo-account” option from the drop-down list. The system will provide you with the login and password from your new demo-account. Please, write them down and save.
  • Then go to “Service” menu, get in the system settings and select “Advisors” tab – here you have to put ticks (as indicated in the figure below) and confirm your action by clicking “OK”.
  • Go to “Navigator” window on the left side of the trading platform and get in “Advisors” sections. Press “+” to see the whole list of Forex trading robots. In case your version of the trading terminal has no “Navigator” window, press the asterisk button at the top of the terminal.
  • Using the left mouse button drag the selected advisor from Forex advisors’ list to the opened chart with the currency pair and timeframe that are most suitable for your expert advisor (usually, this data is stated in the description). Confirm your selection by clicking “OK”.
  • You will see the emoticon on the top right of the chart. If it smiles – your profitable advisor functions correctly, if it doesn’t smile – left-click the cross next to the robot’s name, go to “Advisor Properties” and make sure that all ticks in “General” tab are put as indicated in the figure.

It is also important to check the status of button on the top of the terminal – it must be green (if it is red – your advisor is switched off).

To delete your free advisor you have to right-click on the chart your advisor works with and select “Delete” option in “Advisors” menu.


Settings

  • If you put a tick against “Do not repeat signal” box, then the advisor will perform only one transaction. If you don’t put a tick – the advisor will perform two transactions simultaneously.
  • “Let the advisor trade” – you confirm its right to perform individual trading. Moreover, in the same section you can manually adjust the confirmation of the robot’s planned transactions.
  • “Enable the import of functions from DLL” – you can enable the advisor to use the data from MT4 trading terminal for further analysis. If you are not sure about the source, it is recommended to disable DLL, so as not to endanger your computer. The import from external experts can be left enabled – it doesn’t endanger the safety of your computer. There is also a box to select between manual and automatic confirmation of this function.
  • “Input parameters” tab has individual settings for each advisor. The following parameters are equal:


    TakeProfit - this parameter indicates a necessary number of pips at the close to get profit.

    StopLoss - this parameter indicates how many pips are left before the loss-making transactions closes.

    Lots - this parameter indicates a size of the trading lot used by the advisor.

    PipSets - this parameter indicates a number of pips before the next transaction.

    MagicNumber - this parameter indicates the advisor’s individual number to identify its own transactions.

    MoneyManagement - this parameter is necessary for the profitable advisor to identify a size of the trading lot.

    Comment - this parameter depicts comments to the advisor’s orders, thus making it possible to single out the advisor’s positions from other orders.

  • Click “OK” after applying these settings.

F.A.Q.

  • I am unable to change settings. The saving procedure does not occur after the changes have been confirmed.

    Any changes to the parameters must be performed in the box of the attached advisor – not in “Navigator” window.

  • I have installed an advisor, but it does not open positions. What should I do?

    Positions can be opened only once all the parameters’ conditions described in the settings are observed. To open any position, please, wait till advisor determines the suitable conditions.

  • Should I change something in settings if the position closed by advisor was loss-making?

    It is not necessary to change settings. Loss-making positions are statutory acceptable. But, make sure that the number of loss-making transactions does not exceed the number of profitable transactions.

  • Can I use several advisors on the same trading account simultaneously?

    You can set several profitable advisors at the same time for each new chart only. You have to create a unique “MagicNumber” code for each robot.

  • Can I also perform manual trading if I have an advisor installed on my account?

    Yes, you can do it – the advisor will work only with orders it opened.

  • Can I close orders opened by the advisor?

    Yes, you can do it, but in this case there is a risk of losing your funds – because your advisor can open the same position again.

  • Will the advisor continue to work if the computer and trading terminal are switched off?

    No, it will not continue to work – transactions can be performed only when the trading terminal is switched on.

  • Will the advisor continue to work without the readjustment of its parameters after the computer is rebooted?

    You do not have to make any readjustments – the advisor will continue to work under the settings it worked before the reboot.

Forex for beginners

Back


loaded:ok