What is an EA?

An expert adviser (EA) is most commonly a piece of software that executes Forex trades for you. By applying an EA to your trading platform, you are essentially taking a set strategy and applying it automatically to your trading when certain pre-programmed situations occur. For example, if you have an EA that is looking for a price channel to be breached prior to committing a trade, the EA will detect the exact moment when the disconnect between price and trend occurs, and will make the appropriate trade based upon the market data it is given.

EAs are a great way for beginners to begin trading because it eliminates the human emotions that are so common with beginning traders. Having trades executed automatically for you will help you to overcome the nervousness and stress that can easily ruin a beginner. Instead, trades are made based purely upon logic. When a certain situation occurs, the EA detects this and automates the trade for you. This can be seen in the recently released version of Toms EA.

EA trading is a great way to expand the trading ability of experienced Forex traders as well. An EA has the ability to soak up far more information than even the most experienced human trader can. In this respect, EAs can look at multiple currency pairs at a time, check leading and trailing indicators, and look for breakthroughs from the dominant trends, all in one moment. This type of examination would cost a human precious minutes or even hours; the EA can conduct the trade for you the precise moment that a possible profitable trade appears. Rather than being held back by your own humanness, you will be able to jump into a trade the instant that the opening occurs. A good EA can even lower the risk that an experienced trader can be exposed to. So many EAs now have built in stop-loss parameters, thus making sure that when you do lose a trade, you are only losing a miniscule amount.

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