An Expert Advisor can be simply defined as a program capable of performing any action following the instructions given by the trader, without his direct involvement.
These programs allow the automation of analytical and trading processes in a given trading platform.
“in order to create an Expert Advisor, the program, MetaEditor, must be opened in the MetaTrader 4”
In order to create an Expert Advisor program, an editing program is also required, hence the word “expert”. A set of instructions, created by the editor, known as the Expert Advisor, are administered in the program that direct it to perform a given task.
For instance, in order to create an Expert Advisor, the program, MetaEditor, must be opened in the MetaTrader 4 platform.
General Properties of Expert Advisors Contain:
- A user-created name for the expert.
- The developer’s name.
- A link to the developer’s website, if in existence.
- The list of expert commands (inputs).
Basic Structure of Expert Advisors
An Expert Advisor can have 5 basic functions. A function is a unit of code that is often defined by its role in a greater code structure.
Below are 5 basic parts of functions:
- Header: General program information such as the name, developer, and copyright details. Other basic parameters such as lots size, stop loss, and take profit are also included.
- Initialization function: A specific function executed at the beginning of the program. This function will start to run after you run the Expert Advisor.
- Start function: Runs the program. Most of the codes reside here.
- De–initialization function: Executed to end the program.
- User-defined function: Created outside the main body of the program. This function allows you to rewrite or modify the start function.
Why Are Expert Advisors Useful
- Ability to trade hands-free: Unlike machines, humans need to eat, sleep, and carryout other important day to day tasks. As the forex market is open both day and night, it can become tedious and tiring for the trader to devote an extensive amount of time to trading. Markets can offer trading opportunities at any given time, so traders must be alert at all times whereas an Expert Advisor has the ability to continuously trade throughout the day and night.
- Emotion-free: Humans tend to be emotional, and emotions can potentially impact a person’s trading style. Consequently, this can also impair trading performance. One of the benefits of Expert Advisors is that they are completely emotionless, and they strictly follow the instructions programmed into them, eliminating all potential obstacles that may derive from human emotions. This reduces chances of loss.
- Quickly reacts to the market: Information is constantly flowing into the financial market, so it can be very difficult for traders to keep up with this fast-moving pace. Expert Advisors increase efficiency, as they react to the market information much faster and more accurately.
- Expert Advisor performance can be back-tested: You can back-test the strategy to monitor the results of your program. This gives you the ability to gain more accuracy. It also gives you confirmations on your trades as well as the result it will produce.
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