EAs are often known as expert advisors. They are nothing but bunches of code that can help you to automate your trading process. At times the EAs are used to make your trading process semi-automated.
Though there is saying that EAs are just a waste of time and money, they can help when used properly. Instead of using the super complicated EAs, you can use small EAs which are more like indicators. With the help of such EAs, you can make things a little easier in the trading business.
Trading is a job for disciplined people. Those who live in Singapore based on currency trading profession, lead a very disciplined life. They never break the rules and use their trading strategy in a very precise way. Some of them often use smart EAs and indicators to make their trading life a little bit easier.
Let’s explore some of the amazing uses of EAs that can help us to improve our trading performance.
Price alert tool
The EAs can be used as price alert tools. Naïve traders always stare at their trading chart in the hope that the market will hit a specific price level and they will execute the trade with the help of the price action confirmation signals.
Though it’s a very precise way to place the trade, it makes things hard as the traders have to monitor the price movement 24 hours a day. To solve this problem you can start using the EAs which can make things easy.
With the help of such EAs, you can define the specific price level in your trading chart. Once the market hits that specific price level, you will get a notification and can easily monitor the pattern of the candlestick.
Market volatility alert
We never know when the market might become extremely volatile. If you are good at trading, you know the importance of market volatility. Even the elite traders at the Saxo bank group often say that analyzing the market volatility is one of the most complex tasks in the world. If you can do it properly, you can maximize the profit and cut down the losing trades too early. This is where you can use the EAs.
Some of you might think that the ATR (Average True Range) indicator might be used for this purpose. But if you smart, you are not going to use that indicator since you have to constantly monitor the price movement. To make things easier, set the EAs and you can easily find the perfect time when the market becomes extremely volatile just with the help of push notifications and email alerts.
The EAs are great when it comes to a pattern identifier. Finding reliable chart patterns in the Forex market is a super complicated tool. But if you look at the experienced traders, it won’t take much time to develop your skills like the pro traders. The majority of the pro traders use EAs which identifies the reliable pattern with an extreme level of accuracy.
Though it might be a little tough at the initial stage, you can still learn to use the pattern using the demo account. Unless you can make a consistent profit in the demo environment, you should never try to use the pattern identifier EAs in the real market.
Risk management tools
This is one of the best things about modern EAs. You can use the trading bots or EAs as your risk managers. If you take too much risk in each trade, the trades will not be executed. Even if you lose too much in a single day, you will lose your trading power for the next 24 hours. Based on the frequency of trades and results, it will also generate a simple report that will let you know about the potential risk exposure in each trade. By analyzing the data, you can bring strong change to your strategy.