Education


EAs, also known loosely as “forex robots”, are trading platform
add-ons that have the ability to automate certain trading actions.

There
are various types of off the shelf solutions, including STO’s EAs included with
Premium, Pro and VIP accounts which diverse functionality that can help you
with opening and closing positions, analyzing data and even managing risk.
Let’s take a look at EAs and if they fit within your trading strategy.

Trade with free EAs and charts

Automated
Trading 

Essentially
Automated Trading is a catch-all term
when using automated processes for trading. EAs (especially those included with
STO’s top-tier accounts), give you a slew of automated processes to choose from
depending on your investing goals and trading strategy.

Here
is a disclaimer for those that think that EAs are some sort of mystical
programming market kryptonite – EAs do not guarantee returns, there is no such
thing as “easy money” – knowledge and constantly being informed of what is
going on in the world that effect and move markets are the most valuable
weapons in a trader’s arsenal. Knowing how to manage risk and the tools to do
so, being able to interpret fundamental and technical data, and knowing the
various measures investors take to protect their assets is crucial.

Think
of EAs as a hammer – a valuable and diverse tool, but building a house with
just a hammer – although impressive – would inevitably be structurally unsound.
 

What are EAs?

EAs
are programs that are compatible with your trading terminal (usually MT4) that
allow for certain actions to be automated, depending on the parameters defined
when the programmer or trader sets them up.

Many
EAs are cross-compatible, meaning you can use them in conjunction with each
other, giving you multiple layers of automation, functionality and
customization. EAs aren’t just intended to be used exclusively for trading
actions but can also send notifications for certain market movements, events or
macroeconomic data. Although this second type of EA does allow a certain level
of definition of variables, the parameters that trigger actions for them are
more or less predefined.

What do EAs Do?

Once
you acquire the basic knowledge of trading, you will be able to more
effectively recognize when and where to use EAs, but technically all types and
levels of traders can use EAs as multiple types of off-the-shelf options exist.
These tools can help you enter and exit positions, look for signals to either
indicate buy or sell and also streamline the process of opening or closing
positions.

EA
functionalities 

EAs
have various functions which you can harness for your trading strategy. The 12 EA’s
STO offers include, for example, the below:

Alarm Manager – sends you and your
social media followers notifications, it also allows you to open positions or
send notifications with one click.

Correlation Matrix – Displays and highlights
relationships between instruments – showing you how tight or loose those
correlations by color coding them.

Correlation Trader – This allows you to
cross-reference two tradable instruments – allowing you to take advantage of
the spread (or difference) between their two prices. It displays both the
instruments’ recent activity and your positions open on these instruments.

Excel RTD – This tool will allow you to easily
populate data into an excel sheet, if you are familiar with VBA you can also
use a program to open positions from within the excel sheet.

Market Manager – Fully control a
user-defined watchlist. Displays open positions, account activity and order
information depending on user-defined parameters – you can even update/change
your positions from this EAs interface.

Mini Terminal – a trading terminal
within a trading terminal. As the name indicates this does exactly what the MT4
but within MT4 allowing you to double the amount of information you receive
within your terminal.

Sentiment Trader – you can compare your
open positions to the current market sentiment through the display of number of
long or short positions opened by other traders. This EA also gives you access
to historic sentiment to compare to the price of your current positions.

Stealth Orders – This EA gives you the
ability to keep pending orders imperceivably to other traders, this program
also works for take-profit, stop-losses, buys and sells depending on the price
that you have determined as exit or entry prices.

Tick Trader – This tool helps you
read tick charts that can be changed between candlesticks, line, tick bars or
timed – and you open positions within this EA.

Trade Terminal – This is a trade
execution and analysis tool on par with the type of interfaces professional
traders use. It allows you to create templates for orders that are used
frequently, open position analysis, exiting and entering trades automatically.

Connect – You can create a custom
news feed and economic calendar this also has the ability to be shared with
other people.

As
you can see EAs are a diverse set of tools offer everything from direct trading
to market data analysis and features that can help you stay competitive in the
market. As mentioned in the introduction, these can be combined, to automate
certain functions while using a parallel EA to display valuable information,
market news or the even the movement of the instruments you have open positions
on.

Benefits of
EAs 

The
most obvious benefit is automation – your stop-loss and take-profit levels can
be set as parameters within a EA that will enter and exit trades depending on
limits. For example the OTC market is open 24/5 following most of the world’s
major market –  but are open around the
clock – even if you are ambitious you wouldn’t be able to trade around the
clock – or at least you wouldn’t be able to do so without making a serious
mistake, exposing yourself up to serious risk (both financially and likely
physically).

Another
important benefit to using EAs is the lack of emotion. Notoriously known as
traders psychology – the knee jerk reaction of exiting a position even though
it isn’t going through a reversal, not staying with a predefined strategy or
even not opening new positions in a ditch effort to perform a haphazard version
of risk mitigation.

This article is provided by STO
Markets
. The comprises the
personal view and opinion of the STO Investment Research Desk and at no time
should be construed as Investment Advice



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