Trading with the expert advisors is seen by many (especially newbie) traders as the «holy grail» possibility. Such traders expect from each EA they find or buy the fast and
- With expert advisors you can trade during the time you cant trade manually. You can set up an expert advisor to trade for you when you are asleep, when you are away or when you are too busy to be involved in the market. Of course, you can hire someone else to trade for you, when you are away, but thats rather ineffective decision.
- Strictly following the trading system is another advantage of the automated Forex trading. If you have a strategy implemented in the expert advisor it will trade according to that strategy without any deviations. If you find it hard to follow your own system without modifying it constantly, try using an EA that would do all the work.
- Automated trading excludes any emotions form your market behavior. Computers and programs dont have any emotions and wont overtrade if they lose. If you are not very good at holding your emotions down, automated trading will definitely help you.
- Complicated strategies are not a problem for the expert advisors. For the live trader its not an easy task to monitor a dozen of indicators and compare each of them to the entry conditions, whereas expert advisors can do that easily and in no time at all.
- Errare humanum est said the Roman stoic; that means that despite your experience in Forex trading, youll make a lot of stupid mistakes through your trading career. Computers are not human, and if programmed without errors, expert advisors wont make any errors during the trading.
- There are many things a live trader just cant do — trading on multiple strategies, timeframes and currency pairs simultaneously is one of them. If you want to use your system on several currency pairs and timeframes — use expert advisor. If you want to test several systems at the same time — also use the expert advisor.
- The time of reaction, analysis and decision making can be critical in many Forex trading systems. Where manual trader just cant do it fast enough, automated systems will work fine.
Perhaps, I have missed some important advantages here, but this list looks quite impressive to me. Of course, there are certain disadvantages in the automated Forex trading, but they will be a subject of my next post.