On Forex
Advisors and Safe Forex Trading
Safe Forex trading is an important part of trading success.
Safety can be attained with the help of Forex advisors. These advisors are
frequently referred to as "bots," "robots",
"experts", etc. Whatever the terminology used, the meaning and
purpose are the same: to automate the trading process and, eventually, help the
trader get profitable.
A Forex advisor is a software that is developed with a view to
automate routine processes. Such software is based on a given algorithm, which
can in turn be based on any type of Forex strategy. A Forex advisor can also be
based on a trading system.
Forex advisors can be programmed for different trading
platforms.
MetaTrader 4
This platform has a standard .mq4 extension and is a software
with a source code. Naturally, the average user cannot do much here, but any
amateur developer can make some changes. Alternatively, one can use the .ex4
extension, a compiled advisor for the MT4 terminal.
The goals of the advisor are clear. As for the functions, they
are similar for all advisors. However, you can neither review the workings of a
compiled advisor nor change its code. It is not worth noting that the.ex4
version may appear in a gray color on your terminal, as it makes no difference
and has no effect on performance.
MetaTrader 5
This platform uses a standard.mq5 extension for the source code
and the.ex5 extension for its compiled files.
JForex
This platform belongs to DukasCopy. The source code file has
the.java extension, while the compiled file the .jfx one.
Other platforms.
It is also possible to create a Forex robot that will work in
FIX API.
Classifying Forex advisors based on type of work
1. Automated advisors. If you use this Forex advisor, you will
have very little to do because the entire process will be fully automated. The
software will search by itself for appropriate market conditions to enter the
market. It will establish positions and close them too, in part or in full.
Such programs are also referred to as "expert advisors". As a rule,
they are fully automated and do not require any intervention on your part. The
advisor will control the trading process entirely. All you will need to do is
to ensure that your MetaTrader 4 is turned on at all times. Obviously, you will
have to have continuous, uninterrupted access to the Internet. You will also
have to keep an eye on the cash flow. You will have to watch your balance in
order for the advisor to have enough money on hand to open new positions with a
safe lot. This type of advisor involves minimum participation on your part once
you have got your advisor in place. But you do have to be very confident in
your choice of software before you leave the screen to have a latte or play
with your children.
2. Partially automated advisors. A partially automated advisor
plays an auxiliary role. You will have to analyze the market yourself, applying
the software when you deem it appropriate. The software, in turn, will carry
out its functions based on the algorithm of the software. Once the application
meets the requirements of its algorithm, it will automatically turn itself off,
and you will need to turn it back on manually for it to work again. Trailing
stop expert advisors, trade assistance expert advisors, and news trading expert
advisors can all be considered as partially automated advisors. These utilities
do not trade on their own, performing instead a number of tasks and carrying
out functions based on the predetermined and preset algorithms used in the
development of the utilities. Unlike with fully automated advisors, you do not
need to overanalyze your advisor to check for possible defects in the way it
operates. It is sufficient to control the reasonableness of your trades before
they are placed.
3. Trade assistance expert advisors. These advisors have few
trading functions to carry out. Mainly, they display information. The Forex
advisor Statistics is one such program. The real purpose of trade assistance
expert advisors is to collect information and transmit it to your screen.
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