A FX EA is an expert trader, which is the terminology used for an automated trading system. There are 100s of EAs that can be obtained if you search hard enough. Some are free, some cost as little as $5 and some cost several thousands of dollars. Each EA FX system will interface with an online forex trading platform. Usually these systems are based on technical analysis indicators or chart patterns.

Buying an EA system for FX

Before you purchase an EA system you have to ask yourself - why is it being sold if it is a cash cow? The most obvious, and usually the correct answer, is that it does not work. There are plenty of people out there selling systems that they know don’t work trying to make some quick cash.

On a more optimistic note, sometimes people like to share their wealth of knowledge. They gain significant enjoyment from telling others how good they are and do so via their EA trading system. There are some free systems out there, if you search hard enough, that are reasonably solid systems.

If you do try to buy an EA FX system, then there are a couple of things you should look out for. First, don’t automatically trust that the return that the author advertises is correct. Trial in on 1000, or more, trades in order to gain your own sample of how this system works. Don’t be tempted to do it on less as you need this size sample in order to gain meaningful results. Often the authors themselves have not testing it sufficiently. Second, most EA systems don’t work as the level of sophistication to do well in FX trading is not present in simple EA systems.

Building an EA System

If you believe you have a system that works, then you can build your own EA system to interface with an online trading platform. If you have no programming experience checks if your platform has an API (interface that allows robots). If it does, then find a programmer to code it. If you don’t know anyone, try many of the online programming sites out of India.

Published on 22nd of May 2011
eTorro - Trading Starts Here

Start Trading Forex with up to $10,000

  • 100s Videos and FX Strategy articles
  • Advice from our FX traders
  • Practive free with using real time