Algorithmic trading with Expert Advisors

We live in an era where computers help us to do many things. Many aspects of our daily life are related to the use of technology, and this applies to trading. We will consider what algorithmic trading is, as well as talk about Expert Advisors.



The first algorithmic systems were software for drawing charts and trading, which helped to facilitate the study of prices and the execution of orders. Eventually, they turned into full-fledged trading platforms, which made the work of a trader easier.


What is algorithmic trading?


 Let us first define the automation of trading in general. Trade automation is a trading activity, which is fully (or partially) performed by the software. In other words, with the help of trade automation, all or some trading tasks are performed by a computer program instead of you.


There are several ways to automate trade activities, the main of which are:


  • Trading Signals are services that you can subscribe to so that your software will automatically copy trades of other traders. There are free trading signals, but most of them are usually paid.
  • Social trading is based on a social platform where traders can share their trades, while other traders can track and copy their trades.
  • Trading advisors are software programmed to perform actions in response to certain triggers. You can download free Forex EAs, buy paid EAs or create your own.
  • Algotrading has many advantages and disadvantages. Some traders manage to make large profits with the help of algorithmic trading, but this method of trading is not suitable for everyone.

What is a trading robot?


A trading advisor is software that performs trading tasks on behalf of a trader. In other words, Forex Expert Advisor is a program that you can buy or create yourself. Expert Advisors are also known by such names as Expert Advisors or trading robots.


Algotrading and Expert Advisors are directly related to each other, as they are based on technical analysis, mathematical models and statistics. Expert Advisors are ideal for performing tasks that respond to specific triggers. In algorithmic trading, triggers are defined by rules and values obtained as a result of technical analysis of price movements. For example, a rule can be an indicator signal that reaches a certain value. If this rule is executed, a buy or sell order is sent.


Some trading platforms allow you to install third-party Expert Advisors and some allow you to program your own. The MetaTrader trading platform and MQL4 language are especially popular in this respect.


If you want to expand your knowledge about trading robots and algorithmic trading, visit the MQL4 section where you can find articles on creating and programming your own Expert Advisors.



Related resources:  

How to choose a broker





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