MT4 and 5 have seen the rise in popularity of automated trading systems known as EAs: expert advisors. The Meta Trader expert advisor offers several advantages and disadvantages. Here are what pros and cons you will get with an MT4 EA.
About MT4 EA
MT4 EA or MetaTrader 4 Expert advisor, also known as robots. That can be used to enhance the Forex currency trading consequences with completely automated trading. Simply put, this robot signals the traders to opt whether to act or not.
Meta Trader 4 EAs are computer-generated program runs and trades based on their preprogrammed rules for starting, managing, and exiting trades in the market. One of the most popular and trustable MT4 EA trading systems among forex traders is Trendonex. You can purchase it online from the developer. However, you can create an expert advisor software yourself to automate an existing strategy being used.
Pros of MT4 EA
1. 24/7 Trading
Forex markets activate 24 hours a day and five days a week. It means a trader needs to monitor the markets to identify trading opportunities constantly. Here, an EA comes to tirelessly scan the markets and execute trades even when traders are asleep or on vacation. This all-day and all-night function can possibly lead to a rise the revenue.
2. Streamlined
EAs software can save so much time for a trader by looking at the charts for trading opportunities before getting tired while the market is open. Meta Trader 4 expert advisors can monitor the charts 24 hours a day and open and close positions or even offer alerts that can save time.
3. Emotionless
Making decisions can play a vital role for traders while trading. Many traders tend to make emotional decisions and break their strategy from fear or greed when trading with real money. At the same time, an EA can remove this element and will stick to the original plan, although manual intervention can still be done.
4. Discipline
MT4 EA Programs are set to certain parameters and will manage the traders’ positions based on the programmed strategy. Via a set of yes or no inductions, it will make trading results and act on them instantaneously without changing their decisions as we (humans) would do. Moreover, it will manage risk based on your risk settings so traders do not have to overexpose their accounts.
5. Backtesting
Most of the Meta Trader 4 offers the backtesting function to see whether the strategy has been profitable in the past on multiple markets, including forex and other stock markets. While EAs can give a trader confidence to use them. It is important to keep that past performance is not an indicator of future performance.
6. Recommended Adjustment
Most of the EA also provide recommended adjustments to set their strategy for the forex market trading. The periodic adjustment in input parameters can result from a trader staying ahead of the trading game. However, EAs recommended the traders use a short historical period of 6 months to acclimate to up-to-date market circumstances.
Cons of MT4 EA
1. Over Optimized Performance
In trading, data is an integral aspect, and traders have depended on historical data in order to back-test their trading methodologies. However, it can sometimes be a double-framed sword.
If you set the data long enough in an MT4 EA, then you can eventually come up with whatever results you want. So, make sure that not over optimize the historical data in the system. Because if you are not careful, you will likely fail when trading in real-time in the future.
2. Does not Explain How to Trade
A successful trader achieves the highrequired after the investment. It happens only after many years of sitting in front of the PC screen watching the price action that such a skill can really be acquired. However,you are not making your own trading skills when relying on anEA: expert advisor. Because most of the EAs work for a certain period, and then as the market dynamics transform, the EA becomesoutdated.
So, depending too much on an MT4 EA to trade on your behalf, you are setting yourself up for probableupcoming dissatisfaction.
3. Too Much Pricey
Mostly, Meta Trader 4 expert advisors available over the internet are so expensive. That is why beginner traders who have no enough money to invest in trading are avoiding buying an EA: expert advisor and trying to create their own.
So, Investing in MT4 EA is a Good Option?
- If you are a beginner and want to learn trading, opting for an expert advisor is not for you.
- EA is good for experienced traders who want to save time to keep an eye on other trading opportunities.
The End NOTE: Adjust the data variables from time to time as trends in the trading market transformation. That is why your trading strategy may have to transform with them.
