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Automated Forex Expert Advisor Gives Traders the Ultimate Flexibility

By : Chris Robertson
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For many people, trading in foreign currency exchange (known as Forex) has become very lucrative, similar in nature to the money made by day traders in the 1990s. Until fairly recently, though, Forex trading was only available to central banks and institutional investors. With the advent of software that acts as an automated Forex expert advisor, though, the Forex market has opened up to individual investors.

The importance and value of an advisor system is obvious when reviewing the Forex currencies that are most often traded. After the United States dollar, the currencies that are most often traded are the Euro, the Japanese yen, the British Pound Sterling, the Swiss franc, and the Australian dollar. Given the time differences involved in the openings and closings of currency markets, performing manually Forex trades is unrealistic. Missed trades equal missed opportunities, which can negatively impact the value of a trader's portfolio.

Automated Forex trading systems allow an individual to take advantage of the real-time nature of Forex trading by having an "expert advisor" (also known as an EA or EAs) monitor the market and make trades on the individual's behalf. There are many different automated advisors on the market, but they have much in common. Each EA is programmed with a unique set of rules for trading. Essentially, the software makes decisions based on the conditions set forth in the program. Typically, the trader can choose how much risk he or she wants to assume, which currencies he or she would like to trade, and open and close positions according to "take profit" and "stop loss" targets.

Another advantage of an EA system is that the emotional nature of trading is taken out of the equation. After all, trading based on emotions can have disastrous results, whether the person is trading stocks, futures, or currencies. An advisor system takes the emotion out of the trading experience, which paves the way for increased profitability and success.

An automated Forex expert trader can also be used by those who enjoy the process of executing manual trades, but who want to test out new strategies. Many EAs have an historical component, which enables a trader to try out a trading strategy using past market performance. If his or her new trading strategy is sound, it will generate a pseudo profit in past market. This is a good indicator that it will work on real trades in live markets.

There are many other ways in which an automated Forex expert advisor can work to the trader's advantage. Some EAs send email alerts, some make only a single trade per day at a pre-set time, some make multiple trades in multiple currencies, and others work to compound your profits by opening increasingly larger trades on your behalf.

While there is an automated Forex exert advisor for virtually every kind of trader, the underlying concept of automated trading devoid of emotion is inarguably sound.

About the author:
Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies. For tips/information, click here: automated Forex expert advisor Visit Majon's Financi ng\Investing directory.

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