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About Forex
So how does it work? Well basically, you first need to know that the values of currencies change A LOT every day. This is why more than $4 Trillion are traded daily in that market. To trade on this market, you need to trade currency pairs, for example, if I buy USD/CAD, I am in fact buying US dollars by borrowing Canadian Dollars. In that example, I will hope that the US dollar climbs or that the Canadian Dollar falls in order to make profit. Still don’t understand? That’s alright, I’ll give you another example. This is very similar to going into a bank and asking for US dollar in exchange of Canadian Dollars, waiting for the price of the US dollar to climb and going back in the bank and exchanging your US dollars for Canadian Dollars. The only difference is that in banks, the exchange rates are a total rip-off, and you can’t trade as fast as on the Forex market.
People on the forex market trade on the 4th decimal (for major currencies). That means that if the price of the USD/CAD goes from 1.6050 to 1.6065, I make 15 points (assuming that I am buying USD/CAD).
About Expert Advisors (EAs)
“A Forex Expert Advisor (a.k.a. Forex Trading Robot, EA, MT-4 EA, Automated Forex Trading Software) is a mechanical trading system written in the MQL-4 programming language and designed to automate trading activities on the MetaTrader 4 platform. Expert Advisors can be programmed to alert you of a trading opportunity and can also trade your account automatically managing all aspects of trading operations from sending orders directly to your broker’s server to automatically adjusting stop loss, trailing stops and take profit levels.
Expert Advisors for MetaTrader 4 are all unique and different in the rules they follow to enter and exit the market. Expert Advisors eliminate emotional trading decisions that cripple novice trading accounts. Forex Expert Advisors allow investors to exercise a very strict trading system without falling outside pre-programmed parameters and it is this rock solid consistency one of the features that make these programs so attractive to serious investors. Am Expert Advisors can also eliminate the emotional trading decisions that usually cripple novice Forex trading accounts. Forex Expert Advisors exercise unmatched discipline when trading and can be designed to evaluate more parameters at the same time than any human could keep an eye on at once.”
- Source: Forex Expert Advisor Information
More information on : EA Forex - What is a Forex EA?
I basically use robots to trade for myself with softwares according to certain trend patterns of currencies using technical analysis. I code these robots myself or adapt existing robots.
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