If you’re unsure which EA is right for your trading requirements or need to know how to install an Expert Advisor on MT4, the best bet is usually to hire an EA programmer with the experience to steer you in the right direction.
But, what does EA mean in forex trading? It’s all about using algorithmic bots to help automate or track forex trades and currency pair fluctuations, so an EA is prevalent in investment, finance, and economic sectors.
Let’s look at some key characteristics to look for when selecting an Expert Advisor, and why they matter!
Picking a Great EA
The first decision to make is to hire an EA developer. There are countless freelancers, development agencies, and tech specialists who offer EA services, but it’s important you work with a reputable, skilled software developer. An EA built by a small startup or inexperienced developer isn’t as likely to have high-level functionality or deliver the benefits you’re looking for, so quality is king.
Creators with a solid record of developing EAs who can share advice and recommendations will ensure your finished program works flawlessly and can easily manage your trading strategies and transactions.
Next, we’ve listed some of our top tips for choosing an EA you can rely upon.
Consult Developer Reviews
Testimonials, portfolio reviews, and feedback are useful pieces of information, but there is a slim chance that some reviews posted on developer sites aren’t 100% autonomous. If you’re hiring an independent EA developer, we’d recommend reading their past client feedback so you can be confident they have the skills necessary to undertake your project.
Forex-specific review sites sometimes offer recommendations from professional traders, and it can be useful to gain insight into how EAs work before you begin.
Consider the currency pairs you expect to trade or track and which pairs the EA can handle. Some of the core operating features to look for include:
- Operating times
- Editable algorithm availability
- Manual configuration options
- Abilities to open and close trades autonomously
One trick is to see how the EA has performed over recent years with historical market data; you can find these reports published on developer sites or within their portfolios. If you’re looking for an EA developer who hasn’t offered any reports to demonstrate the efficacy of their work, it may be worth requesting this to make an informed decision.
Cost is always a consideration in any endeavor, and there is the inevitable trade-off in that professional, fast, and reliable EAs cost more than basic alternatives. Some EAs cost from a few hundred dollars to a thousand or more, so a lot depends on the style of forex trading you undertake and the features you’ll be expecting to use.
As a rule of thumb, a simple EA costing $50 or less may not be sufficient to provide detailed tracking, but it could be capable of automating stop orders when a certain parameter is reached.
EA developers will commonly provide you with a testing option, which is an excellent way to see how their EA works, if it justifies the cost, and how compatible the program is with your other software or integrations. Independent testing is undoubtedly the best way to identify any flaws or snags you’d like to correct, and in some cases, even a great EA might not work for you.
You can purchase a done-for-you EA ready to deploy or commission a developer to customize your EA with your trading strategy, specific technical indicators you wish to monitor, or other important metrics.
Choosing the Best Expert Advisor for Forex
Nearly every successful forex trader uses an EA, primarily because it is impossible to monitor currency pair movements 24/7. An EA can take responsibility for following and carrying out your instructions even when you’re busy elsewhere.
Developers offer a broad range of EAs, but following the criteria above should help narrow down which options best suit your requirements. The ideal option is always to test the EA, find out how it works, or backtest a bespoke EA with real-world data to examine the outcomes–this process gives you a clear idea about the suitability of your short-listed EAs and which will offer you the greatest market advantages when it comes to live forex trading.