Two of the ways in which you can trade the currency market without really locating entry points yourself is by using an EA (Expert Advisor) program or an automatic trading robot. These two solutions have become widely popular in recent years with the advent of the Internet and other technological developments.
What is the difference between an Expert Advisor and an automatic Forex robot and which one should you use?
There are many similarities between EAs and trading robots:
1. Both are software programs which were developed to trade the market on your behalf.
2. EAs and robots both take care of the analysis part of the trade. They go over the current market prices and based on their internal algorithms and technical indicators, they discover the entry points for high probability trades.
The second similarity makes using either of these two solutions a low hassle way to take part in the currency market.
However, there is one major difference between EAs and automatic trading robots: EAs don’t really trade on your behalf while robots do.
You see, EAs just provide you with trading signals. They tell you when they believe you should trade but they don’t actually place the trade for you. This does mean that you need to be around to place the trade but it also gives you an additional layer of control, a final «veto» so to speak in which you can decide whether to follow the signal or not.
Automatic trading robots are an entirely different thing. A robot takes care of the entire trading process for you. It discovers where to place the trade and actually enters it for you. It also exits the market on your behalf, and it’s all done automatically without your active participation.
There is certainly something appealing about such a low hassle way to trade the market as a robot gives you but it also means that you’re not in control. An Expert Advisor is a much better way to be involved in the market and perhaps even learn something new about it.
If you want to be more involved in Forex trading, then an EA is the right solution for you. If you don’t then a robot may be better.
However, know that it is always good to know more about how the market is run. For that, a robot doesn’t really work. It can make you money, but it can’t teach you anything.