Trying an EA for the First Time
Some Forex traders use an EA in order to help their trading careers. It’s actually not a tough concept, and it’s extremely easy to use once you have one set up. Basically, an EA is more accurately an “expert advisor.” These come in all sorts of varieties, but are mainly found within the currency trading market. All of them follow the same basic principals, though. They are all used through the MetaTrader 4 Forex program, and they all give some sort of recommendation as to which currency pairs should be bought or sold, and will give you a good idea of when to do so. This last part is where some differ. Because of the MT4 software, some EAs are able to automatically conduct trades for you, if you wish. Others just look at the charts and generate trading ideas that you can choose to use or not use. Some EAs get their signals based upon computer algorithms, while others just have a Forex expert sitting on the other end of a computer typing things to you. Either way, they can be extremely profitable if you use them right.
There are hundreds, if not more, of these EAs out there. Unfortunately, many are extremely expensive and will never earn enough for you to offset that cost. In fact, most will just lose you more money. Still, when you find a good one, the amount you pay for it shouldn’t really matter since it could earn it back in just a few weeks–or sooner. For example, if you spend $1,000 on a EA or some other trading robot, you are probably going to invest a lot more than that amount with your Forex broker; let’s say you’re starting with $10,000. If the software is earning you a 100 percent return rate each year (something that’s very realistic), you will earn $10,000 over the course of a year with your trading. That ends up being just over $833 per month. In other words, your investment for the robot will be returned to you, in this theoretical example, in less than 5 weeks. Not bad at all.
However, you don’t need to spend this much to get a high quality product. Many EAs, such as Tom’s EA, have very high success rates, and they can be more than cost effective when you get a good deal or promotion.
The best part of using a robotic EA is that once you get it installed and set up, you’re done. Just keep it running during trading hours, or set it up on a VPS so you can turn your computer off whenever you want, and then you’re done. It does all the work for you, opening and closing trades on its own without your supervision. You will obviously want to supervise it–you definitely need to know if it’s not performing in the way you expect–but the hard part at this point is done. If you’re broker uses MT4, just set it up through this software program, set your trading parameters, make sure you have details figured out, then sit back and watch the profits start coming in. Unlike regular Forex trading, the hard part is out of the way before you ever start trading. Your work is just picking the right broker with the best spreads, and then doing research on the EA you wish to use. Look at a wide variety of sources, including independent reviews, track records, and any modifications that have been made over time. Once you do this, the actual trading is taken care of for you.