How do metatrader experts advisors work?
The operation of Expert Advisors is based on a series of rules that can be summarized through a series of logical block codes. They can be made for Metatrader 4 or 5 or for other trading platforms.
In particular: If strings and Then strings.
If (if) the crossover crosses the 150-period moving average from high to low, then (then) it is time to sell the EUR / USD Forex currency pair.
In most cases, the rules are few and facilitate the scheduling of Expert Advisors.
A very important rule for understanding how to manage positions concerns moving averages. Whenever these intersect, the platform opens a position for the user. Furthermore, with the EAs it is also possible to decide the size of the positions with which to enter the market. In this regard, it is also essential to consider the Stop Loss, that is the signal that tells the broker the exact moment in which to stop the losses, and the take profit, which rather indicates the opposite. After this technical parenthesis, let’s try to be more practical, clarifying that an Expert Advisor is nothing more than a file with a programming language inside.
Generally it is characterized by the MT4 extension, which can be of two types: .mq4 and .ex4. The files in question can be executed without any problem by the online trading platforms Metatrader provided by the brokers.
Benefits and Risks
From these few lines, using Expert Advisor can be very tempting.
Let’s face it: who doesn’t love the idea of winning effortlessly?
If you search online you have different proposals:
- free expert advisors
- best expert advisors
- expert advisor generator
- scalping expert advisors
but really work?
In theory, but also in practice, this is possible with EAs. In fact, you just have to launch the robot and let it manage the positions (and therefore also the profitable ones) while you dedicate yourself to other things. Continuing on the objects of advantage of these robots, we remember the possibility, through their use, to set aside many psychological obstacles typical of online trading. In fact, it often happens that those who invest are wrong because they are too caught up in greed.
With an Expert Advisor, you don’t risk these mistakes.
In fact, remember that this is a robot and therefore has no sensations. The advantages in question are objectively interesting. The problem is that when it comes to practicing, they “fall” a bit.
- The first problem that inevitably arises is the impossibility of referring to EAs in general: these bots are in fact many and all different. Their quality is strongly linked to the developer’s choices. If the latter is a true expert in the world of investments, we are faced with real guarantees of good results. The problem is that, in most cases, the environmental assessments found on the Internet are of very poor quality. They also require the payment of large sums.
- The underlying problem, remember, is the real experience of those who propose them: in the vast majority of situations, Expert Advisors are sold by marketing experts, who have little or no knowledge of online trading. The EAs in question are bought by people who have no particular knowledge of the world of investments. These are naive users who let themselves be fooled by the promises of stratospheric earnings made overnight (this is a mere illusion both in online commerce and in life in general). These users are often found in online trading scams.
- So EAs also carry considerable risk: very often once you switch from demo mode to real money mode, you are at least exposed to huge losses.
Copy as an alternative to Expert Advisors?
AvaSocial, like Expert Advisors, offers the possibility of automatic trading.
In this case we are talking specifically about Copy Trading [more details here], a mechanism that allows you to copy what has already been done by investors who, after being sold, have managed to obtain results with their online trading.
The mechanism described above is not the result of the improvisation of a marketer who knows nothing about investments, on the contrary: it is an internationally certified patent. Not surprisingly, this broker is in possession of the CySEC license. These details provide real security and peace of mind for users.
When you sign up with AvaSocial, you can rest assured that you are entrusting your money to an international monitoring platform which, to be online, has to meet very strict criteria.
Note: this does not mean that you can always win by using AvaSocial. We always talk about online trading and a risk that cannot be avoided. Of course, copying the best traders on the platform is objectively simple, but we must not forget that at the basis of their work there is always human ingenuity, of a nature prone to error.
In consideration of this aspect, one should not fall into the naivety of “fixing” with only one trader, even if a very good one. If you want to move efficiently on AvaSocial, you should follow at least ten Popular Investors (experienced traders).
This way, you can be prepared to adapt your strategy in case an investor is no longer profitable.
Our advice is therefore to constantly monitor their performance.