Introduction to EAs: What They Are and How To Install Them
Education - Milan Cutkovic | 02 Aug 2019
In the world of FX trading, an expert advisor is a program which traders install onto the MT4/5 platform in order to execute trades automatically, based on certain pre-set criteria.
Who is using EAs?
EAs are widely used in the FX trading community. Some traders exclusively use EAs, while others choose to do manual trading and deploy EAs on other trading accounts.
Why are traders using EAs?
- Time - being a full-time trader requires a lot of time and patience. EAs allow you to carry out trades without manual intervention.
- Emotions - EAs clearly follow the instructions, and for traders who struggle with managing their emotions, it might be easier to trade that way.
- Diversification - some traders who trade manually might decide to use EAs to diversify their strategy. For example, a long-term trader trading exclusively indices may look into short-term EA strategies that trade currencies.
What are the disadvantages of EAs?
EAs follow rules, and cannot take into consideration things like change of market sentiment or a major news release that changes the direction of the trend. Furthermore, you should be familiar with the settings of the EA, understand the logic behind it and test it out on a demo before you deploy it on a live account - especially if the EA was not developed by you.
How are EAs built?
MQL4 and MQL5 are programming languages used to develop trading robots, custom indicators and scripts for the MT4 and MT5 platforms. It is supported by MetaQuotes, and there is a large community of developers sharing EAs on their forums.
How to install an EA in MT4?
- Create or download the EA.
- Select and copy the EA file.
- Locate the "MetaTrader 4" folder under "Program Files" and insert the file into the "experts" folder
- Open the MT4 platform
- Find the "Navigator" box on the left side of the platform. There will be an option that says "Expert Advisor" - click on the Plus sign.
- Select the required EA and drag into one of the charts you have open.
- A pop-up box will show you the settings of the EA.
- Once checked, click on "OK" to enable it.
The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
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