EA (Expert Advisor) sellers who market their products for commercial purposes always have a tendency to oversell their robots and they try to do this by labeling the product as no-brainer lucrative machines. However, bear in mind that this is only half the truth. Thus before you venture it is better that you comprehend the pros and cons of EAs so that you can be assured that it suits your career/monetary desires /life goals.
Advantages
Freedom
Expert Advisors provide you with freedom meaning that they can work without any intervention from human beings so that you need not any more hook on to your PC screens. Instead, you can either sleep or even tan yourself at the beaches or even go for a full-time job while your EA (Expert Advisor) does all the Forex trading for you.
Speed
EAs possess the capability to carry out orders at a very fast pace. For instance in the case of a 100 pip market movement to be done in 2 minutes then only your PC can achieve it. Provided the perfect trading atmosphere, an EA is competent to open, close or alter spots in a fraction of a second thereby executing the trading plan much more trustworthy than what it would have been for you.
An EA (Expert Advisor) can observe an infinite number of data flows. As you can understand, what it connotes to have an EA is to have a huge number of potentials. The reality of having a PC script perform our trading system lets us investigate trading proficiencies that were formerly not possible to do with physical trading, it as well affords us the option to utilize an unthinkable number of data flows and it creates trading independent from human intervention.
Professional Traders Academy – Expert advisor for Forex
Capturing all targeted moves
EAs function 24/7 and hence are able to capture a lot of market moves which is not possible by you as you are a human being and hence you need time for other daily chores of yours. This is as well a most important benefit as the expert advisor is proficient to ‘observe’ the market with added competence and carefulness than any individual.
Systematic
EAs are able to follow rules competently as they do not have any emotions whatsoever. Therefore, you can be assured that your plans will be executed precisely as you premeditated it. A human trader conversely will tend to be ‘flexible’ with the rules of trading and will not pursue them precisely. This is specifically after they face a colossal loss or gain.
Disadvantages
Inflexible
Being methodical is also a disadvantage. The cons of automatic trading arrangement are that they are rigid. An EA (Expert Advisor) will not be able to achieve anything beyond the coding that it is provided with, and hence it is restricted to follow the logic that you provide it with. The major trouble is that the EA may discontinue working beneficially if market situation varies against it. The rate at which an EA can acclimatize to altering market conditions reckons largely on the judgment you offer it.
Black Box
EAs can be utilized as black boxes! This is one of the greatest cons of automatic trading systems as it can be used even by people who are clueless about how the system really works and they can use it to trade on a trading platform. This certainly is the region where the seller of a commercial expert advisor takes advantage and a spot where you have to be very careful. You should never trade with an automated trade system in case you are not able to fully comprehend.
Emotions
People are deluded into believing that automated trader has no emotions. This is surely not the truth and this has, in fact, made it very difficult for people to profit from an EA. Even though automated machines do not have any emotions but the person operating it does have feelings. In reality, the emotions that are felt when trading via an EA is very different than the ones that are experienced while a person trades manually and sometimes such feelings tend to be more destructive. The trader may be allured to tamper with the rules of the EA (Expert Advisor) or close it in total pointlessly.
EA testing can be unreliable
Testing by means of an EA is not reliable. One of the greatest setbacks is when you try to combine the untrustworthiness of some of the trials with the truth that black boxes can be traded. People, in fact, buy these systems by thinking that they will be able to make huge profits but finally find that their accounts are in fact wiped out completely. Sometimes users try to create their own EAs with illogical plan/testing systems. Creating Robots is both a science and an art. Hence this course was created.
