Start earning
by downloading the app

Forex Expert Advisor

Trading advisors or Forex robots are special software designed to automate trading on the currency market. These are add-ons to trading terminals, for example, metatrader 5. The basis of these advisors is a well-tried algorithm that practically proved its efficiency. A properly selected Forex bot may make the trader’s goal much easier. Smart software can open and close transactions, ‘make’ decisions regardless of emotions. There are semi-automated and fully automated advisors. As a rule, one trading advisor is set to work with a specific currency pair, nevertheless, there are combined programs, which allow managing several instruments at the same time.

Types of advisors
There are a great many trading advisors. They may be divided into several groups:

Automated – independently control the trading process. They can 'make’ decisions without the trader’s participation.
Semi-automated – to open and close a transaction a person’s decision is required.
Information – provide data based on the analysis of various news, statistics, reports, etc.
Trend – designed to trade following a trend. This software is considered less reliable as they often give false signals.
Indicator – all advisors, which involve at least one indicator in their operation.
No indicator – their operation is solely based on a mathematical system of calculating a more profitable position.
Martingale – make it possible to turn a losing position into a winning position. They’re considered to be high-risk ones.
For capital management - these programs allow you to trace and assess risks.
Multicurrency –universal robots allowing you to work with different currency pairs within one trading platform.

These are not all types of programs by no means. Robot classification may be different. There are also combined programs uniting the features of several advisors. Robots are selected individually considering the trader's strategy and needs. One can find and download profitable software on both free and paid resources.

Advantages and disadvantages of advisors

A Forex trading advisor may become a good assistant if you consider its advantages and disadvantages in advance. So, the pluses of automated advisors are:

No human factor: positive or negative emotions, agitation, excitement, etc. all robot’s decisions are based on well-planned algorithms.
The possibility of round-the-clock use. If a trader has not much time, a robot can monitor the situation when a person cannot be present behind a computer.
Quick decision-making. The advisor’s reaction is instant. It ‘makes’ instantaneous decisions, while a trader, even the most experienced one, needs some time to think.

Despite many advantages, advisors have their drawbacks. They are:

Need for constant Internet access. If your PC turns off or the Internet is lost for some reason, your robot becomes completely useless. Because of constant failures and low-quality Internet, there may be slippages, which will result in losses.
No human factor. The basis of the program is only technical analysis and well-tried algorithms. However, a robot cannot analyze the market situation, doesn’t take into account the political situation in countries, cannot do long-term forecasts.

What is better: paid or free advisors?

There are paid or free advisors. Which ones are better? Many beginner traders stick to the opinion that there's no such thing as a free lunch. In fact, that’s not always the case. There are a lot of good advisors, which brokers distribute. That’s an optimal option for a beginning trader who is developing his strategy and trying various instruments.

Developers distribute plaid software on a commercial basis. These advisors may cost a huge amount of money. However, no one can guarantee their working capacity and effectiveness. It’s better to buy software from reliable sellers who provide full support and regular updates. Paid software better fits seasoned traders who have a working strategy and a clear idea of their goals and needs.

Setting trading robots

To make the software work in line with the trader's goals, he needs to set it correctly. As a rule, the most careful attention in the robot setting is paid to the next items:

Type of currency pair. Robots are most often created to work with a specific currency pair. That’s why you have to decide on this parameter before buying the app.
Time interval. To be set individually based on the trader’s strategy.
Lot size. Lot is the main unit of measurement in the exchange market. It is usually set by default, that’s why if you want to change the value, you have to do that manually.
Trading period. There are advisors, which open and close transactions only in a certain time interval. These programs may turn out to be ineffective at any other time out of a set interval.
Risk dimension. To be set manually and determined based on experience.

Changing standard settings is possible only if you know and can predict what consequences these steps may bring. You should do that carefully and not for the sake of interest only. Also, you shouldn’t change settings responsible for analysis algorithms. Otherwise, the software may appear to be ineffective and even loss-making.

Why should you test a robot?
Testing a trading robot is a mandatory condition of successful trading. You can do that on archived quotes or a demo account. Why should you do that? Without testing a robot you won’t be able to understand how effective this software is for your strategy and which parameters in its operation are unacceptable to you. If you start operating a robot in the real market all at once, you’re risking losing your deposit because of incorrect settings. Testing helps to increase the advisor's performance, which means your profit. 

Why doesn’t an advisor work?

The modern market features thousands of various advisors. Only a limited part of this diversity may fit you. Many beginners take advisors for magic means able to cope with any tasks and bring a huge income. That’s the main mistake.

Until a trader has a clear understanding of the market and its basics, any software seems useless. Moreover, a robot may become the cause of deposit loss in untrained hands. That’s why before choosing software, you need to decide on your strategy, and carefully explore and test the algorithm. After that, you can choose a robot, which will meet the trader’s demands. It may take a good deal of time.

If an advisor doesn’t work, there may be several reasons for it. Firstly, you chose the wrong advisor. Secondly, you didn’t gain insight into the basics of trading nor study the software. Thirdly, you’re using software created by unfair developers.

Using robots in Forex trading may yield a tidy profit, however, to this end, you need to understand their operating principles. It is also important to remember that software is just a tool calling for control on the part of a trader.



Application
Resources
Contacts
HappyHamster.io is not a financial services provider, but only a robot on the platform of the regulated broker Just2Trade Online Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission in accordance with license No.281/15 issued on 25/09/2015. FXTM (ForexTime Limited) is licensed by the Financial Sector Conduct Authority (FSCA) (former Financial Services Board FSB) of South Africa with Financial Services Provider (FSP) license number 46614. RoboForex Ltd is an international broker regulated by the FSC, license No. 000138/333, reg. number 128.572. Address: 2118 Guava Street, Belama Phase 1, Belize City, Belize. All information published on this website is for educational purposes only and should not be regarded in any way as investment recommendation or advice, not even implied.

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. The displayed results are a combination of real live results and hypothetical trading results.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

Happyhamster OU, Harju maakond, Tallinn, Kesklinna linnaosa, Estonia pst 5-309b, 10143
support@happyhamster.io
t.me/hh_bots
@ 2021 happyhamster
Made on
Tilda