With minimal investment and learning, you can trade automatically with a purchased EA and start profiting from the forex market. EAs are best worked without intervention on your part. This is made on the assumption that the EA providers provide regular updates of the strategy.
Advantages of Trading With an EA
1. Provides a Trading Plan
2. Monitor and Execute Trades On Your Behalf
3. Minimise the Tendency You Trade With Emotions
4. High Probability Of Entering At a Good Price
5. Provide Market Analysis at Lightning Speed With Little or No Error
6. Provide Money Management For You ( Calculation of Lot Size and Stop Loss )
7. Good Learning Tool For Trading (For beginning traders, this may be a best bet to make consistent money and to learn about trading the market)
8. Trade’s a system Researched by Professional Traders
9. Leverage On Professional Traders’ Experience As They Provide Updates to Their EA System at Little to No Costs
However, even if traders use EA, most of them will still lose money.
Weaknesses of EA trading
1. EA allow users to be lazy and they tend to become complacent, that is take on unnecessary risk banging on the idea that they will win all the time.
2. Believing that consistent profits in trading is all about having a good systems
3. Cannot handle loss emotionally or has low risk tolerance to losses
4. Do not conduct adequate research before buying EA
5. Do not understand how the EA Trades
6. Human intervention in EA trading is the last thing you want to do trading with EAs
7. Personal Characteristics do not Match That of an EA (A trend follower by nature will not like scalpers EA even if a profitable EAs is used due to the conflict)
It is very important that we know the limitations of EA and leverage on the EA’s strength in our trading business. At FxEAReview, we strongly believe in EAs trading. We provide research papers of commercial EAs with detailed analysis monthly. We are aware of the weaknesses of the EAs we are trading with.
However, we strongly encourage that beginning traders learn investing from books and start trading with a well researched EAs. We have learnt a lot from using these commercial EAs. The next step will be to design a system of your own and to trade your own system.
Feel free to use this article on your website or ezine as long as the following information about author/website is included.
Warren examines commercial trading systems and has since started researching and analysing systems to uncover good systems which bring in consistent profits. By publishing all the research papers and detailed analysis online, he seeks to educate potential investors and traders on the world of trading the forex market with automated systems.
Other Related Articles