Expert Advisors (EAs) – also called “Trading Robots” – are software programs that are used to automate analytical and trading processes. They allow us to perform fast and highly technical analysis of price data and manage trading activities based on signals received. The entire routine work of technical analysis and trading can be given to expert advisors. An expert advisor can perform analytical and trading operations for any symbols or periods, independent of whether the corresponding chart was opened or not.

Advantages of Expert Advisors

• Time: EAs execute trades automatically, freeing up time for other important trading activities, such as maintaining a trading journal.

• Emotions: EAs follow set rules, preventing emotional decision-making and ensuring data-driven trades.

• Diversification: EAs enable traders to diversify strategies, such as a long-term index trader exploring short-term currency trading.

Disadvantages of Expert Advisors 

• Glitches: EAs can malfunction, leading to undesired trades. Reliable support is essential, as brokers typically don't offer EAs directly; they come from third-party developers.

• Strict Rules: EAs cannot adapt to market sentiment changes or news impacts, strictly following predefined rules.

• Due Diligence: Not all EAs perform well; traders must carefully evaluate and monitor EAs, as initial profitability doesn't guarantee long-term success.

For more details regarding Expert Advisors, please watch the video below.