It is not incorrect to describe forex as a whirlwind of opportunities and forex traders are storm chasers who have to precisely wait and make their move according to market movements. The knowledge of price action prediction and overall market sentiment forecast is a skill that can be acquired and perfected with constant practice and learning. Without being discouraged by unavoidable losses, serious traders always tend to use fx expert advisors to make their trading experience less complicated than it already is.
An expert advisor is like an intelligent trading assistant that remains by your side and scans the entire market to find profitable trading opportunities (based on the user’s settings, risk appetite, capital, etc). A first-timer is not expected to know forex market 101 from the very first day of trading. But their trading experience can be much better and more profitable if they use high-tech automated trading tools like FOREX expert advisors. But with a plethora of available fx EA advisors, people often get confused about their effectiveness.
Since the existence of EAs is not something new, there are millions of options to choose from if you ever set out to search for a trustworthy expert advisor tool. For this reason, newcomers often get confused about choosing the right one to start their automated trading experience. If you are experiencing such a complication, then it is better to keep in mind the pros and cons of using fx expert advisors to come to the right conclusion.
Pros of using fx EAs
Those who trust fx EAs can tell you all about its benefits in a detailed yet impartial manner which is why we have mentioned below some of the guaranteed advantages provided by fx expert advisors:
- It allows you to predict the price of any given forex pair according to your settings for as long as it is connected to the internet. But that is not all.
- Any top-tier forex EA can be customised by the user to help them calculate risks and trade according to desired profitability.
- Any specific automated trading system is made in a way that helps not only the high risk-takers but also those who have just started their fx trading journey. It has different levels to suit users’ skills.
- Since EAs are compatible with several forex pairs, it helps users to broaden their horizons and become more of an all-rounder with practice.
Cons of using fx EAs
Like every other tool/product, forex expert advisors also suffer from a few cons that make newbies wary of them. The forex market is full of confusing views and people often find it hard to figure out which way leads to profit. This confusion ends up affecting forex EA users and they tend to make mistakes to suffer losses as a result. Below are a few cons related to using fx EAs that you should keep in mind
- A promising automated trading experience depends on one important thing and that is making the right choice. The majority of the time, people get misled while searching for the right EA and installing a money-eating machine that results in a total loss. One has to be mindful before signing up for just about any EA.
- Backtesting is a trusted way of evaluating whether any forex expert advisor does what they are advertised to do or not. One of the striking differences between a good and a scam FX EA is their backtesting result. But a lot of times, the backtesting results shared on EA sites are fake. This makes it even difficult to pick a good quality EA.
- If you do not have much experience trading forex pairs with an EA then it can be a learning experience from the beginning. But before you can buy/sell using a trading platform, make sure to check whether your broker is compatible with a particular expert advisor or not. This is a limitation of using forex expert advisors as they are not compatible with some good brokerage platforms these days.
After going through the aforementioned information, it would be easy for anyone to decide whether EA is a good match for them or not.
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