Everyone knows that forex experts are a new “hot” thing in foreign exchange trading. For those who don’t know what Forex EA is, it stands for Forex Expert Advisor. In essence, it is a trading robot. Developer EA creates a trading system with lagging metrics such as stochastics and moving averages, and creates code that your trading platform uses to trade when you’re not around. So basically he can trade for you while you sleep, work, take a shower, etc … Seems incredible? Well, there is one tiny thing you need to know about them. Most fail.
Don’t believe me? This is great. Just browse almost all forex forums online today. You will get a filling of forex experts. They are everywhere. Once you’ve spent 4 or 5 months demonstrating and crashing your account with them, you may want to spend your time a little more carefully.
Successful Forex EA is in many ways similar to the Holy Grail of trading. You hear a lot about it, but never see it, right? There is a good reason for this: the robot cannot trade for you.
I’ve learned this not easily (as I’m sure many do). We all want an easy way out. But simple logic tells you that a robot cannot intuitively respond to market news. This is not how a robot can hear what the federal government is saying about the state of inflation. What’s more, the robot doesn’t know how to trade rhetoric.
The irony is that if I spent time on what wasted my search for the Holy Grail and spent it on how the market moves, I would have been successful much sooner.