With the advancements in today’s technology, an increasing number of traders are interested in finding automated trading systems that complete all the work so that they are spared from glaring at the charts the whole day.
This idea is currently gaining ground, and many traders in the computer age are finding it to be both fulfilling and profitable.
The heavy work of making decisions whether to enter or exit the market, which usually makes most traders to be exhausted, depends entirely on the expert advisors.
What is Expert Advisor?
An expert advisor or a trading robot refers to a computer program installed on the MT4 trading platform with capabilities to make trade decisions on behalf of the trader.
A trading robot can do the work of advising traders on potential trading opportunities to take or it can be coded to automatically execute trades on a trading account.
Forex robots are very useful software that can be programmed to analyze the market and make the buy and sell decisions without a trader’s direct intervention.
Before programming an Expert Advisor, you need to identify a trading strategy to input in the automated trading system.
Consequently, the robot will just be executing your trading strategy automatically without requiring your physical presence.
For example, a common strategy some traders use to program EAs is the moving average crossover method.
The rule for this trading strategy is easy: whenever the fast moving average crosses above the slow moving average, it indicates bullish market conditions.
On the other hand, whenever the fast moving average crosses below the slow moving average, it indicates bearish market conditions.
If an expert advisor based on this strategy is installed on the MT4 platform, trades will be executed whenever two moving averages cross each other, either above or below each other.
This is a very basic example of what Forex robot can do. Usually, Forex bots are programmed to use much more indicators and are able to scan the market for hidden trade signals.
Forex robots also control the amount of capital you expose to the market.
For example, if you are trading an account with a capital of $1,000, the robot can be programmed to execute an appropriate position size that’s not the same as that of $5,000 account.
Irrespective of the expert advisor you use, it should give you the ability to set a risk level that is suitable to the size of your trading capital.
Therefore, before coding an EA, you need to be experienced in any of the coding languages.
Better still, instead of having to master the programming languages, you can use a Forex EA generator, Forex Robot Factory, which allows you to create amazing profit-making robots without any programming skills.
Rather than writing complicated lines of code, an EA builder enables you to input your strategy preferences and create a robot out of it, something that is faster, uncomplicated, and inexpensive.
So, if you are looking for ways of how to download forex robot free, you can try EA builders.
Here are some of the main types of trading robots.
- The news forex robots—as the name suggests, their main role is to trade during the major market news when huge price fluctuations occur.
- The breakout forex robots—they are programmed to mainly execute trades when currency pairs break through significant support and resistance levels in the market.
- The scalping forex robots—with this type of expert advisors, you can earn small profits multiple times a day. The robot will be looking for small market fluctuations, and enter and exit trades throughout the day.
- The hedge forex robots—with this type of expert advisors, you can reduce the loss in one trading position while maximizing your profits in another trading position.
Not all of these types of robots can be created using the Forex Robot Factory but this is just because the purpose of the FRF is not to create a complicated robot that cannot be tested on historical data. Forex Robot Factory creates expert advisors that are simple and have high chance to win and make real money.
How to Install Expert Advisor in MT4
The MT4 trading platform is very versatile, and it allows users to add different types of expert advisors for trading.
After you’ve programmed a trading robot or used an EA builder to generate one, you can install it on the MT4 platform and allow it to make automatic trades on your behalf, while you spend your time working or strolling the beach.
The process of how to install expert advisor in MT4 is very easy, and anyone can complete it.
Step 1: Transferring the EA files
- Develop or generate a trading robot and save it on your computer.
- Select and copy the trading robot you intend to install on MT4.
- On the MT4 terminal, click on the “File” tab found on the top navigation menu. Then, click on the “Open Data Folder” on the drop-down menu.
- On your computer’s data folder, double click on the “MQL4” folder and then the “Experts” folder.
- Transfer the copied robot files by pasting them on the opened Experts folder.
- On the MQL4 folder, you can also install indicators and scripts—on their respective folders as indicated below.
Step 2: Install the EA on the chart
- To make sure the robot is available for installation, refresh “Navigator” panel or restart your MT4 trading platform.
- Look for the EA under the “Navigator” panel on the left side of your trading platform. Click on the “Plus” sign and the robots available for use will be displayed.
- Install the EA on the MT4 chart by dragging and dropping it onto your preferred currency pair and time frame. For example, if the EA is suitable for trading the EUR/USD pair on a 1-hour timeframe, attach it to that particular chart.
Step 3: Modify the settings
- On the “Tools” menu, click “Options”.
- On the popped-up box that appears, under “Expert advisors”, make sure the settings are checked as shown below before clicking “Ok”.
- This step is best to be completed before you attach Forex EA to the chart.
- A quick way of doing this is to go to the “Autotrading” button found on the top of the platform and activating it for live trading. It will show a green color.
- Furthermore, if a popped-up box appears with your EA’s settings, make sure the necessary settings are checked before clicking “Ok”.
- Usually, “Allow live trading” and “Allow DLL imports” are required for the Forex EA to work. But each EA can have their own requirements.
Step 4: Start trading
- If the installation is successful, you’ll see a smiling face on the top right-hand corner of the MT4 platform. This indicates that your robot is ready for trading.
- It’s important to note that before launching your forex robot for live trading, you should try it out under simulated forex trading conditions. This way, you can be able to tell its profitability and make appropriate adjustments to maximize its performance.
That’s how to add expert advisor in MT4!
What To Do If Expert Advisor Is Not Working
After completing all the stages on how to install a forex robot in MetaTrader 4, you may still find that your expert advisor not working properly.
As such, you’ll need to troubleshoot the robot and fix any problem it may be experiencing. There are various issues that can cause an EA to malfunction.
If your expert advisor is not working, the first thing you should do is to confirm if the various parameters are checked.
The following options should be selected (as highlighted earlier):
- “Autotrading” option (showing green color)
- “Allow live trading”
- “Long & Short” positions
- “Allow DLL imports” option (for some robots)
- “Allow import of external experts” (usually optional)
Most of these options are disabled by default. For example, Autotrading is disabled by default for your own safety. If you were a newbie and accidentally run an EA, it could lead to massive damage to your account.
Therefore, the feature is disabled (showing red color) to safeguard traders from such costly mistakes.
Furthermore, if the “Allow live trading” option is not enabled, the EA will not be able to trade on its own.
Once the option is selected, the robot will be given the green-light to perform trade decisions without your direct intervention.
Also, you should check for the following error messages:
- Error messages at the “Experts” section located at the bottom of the trading platform
- Error messages at the “Journal” section located at the bottom of the trading platform
- Error messages due to poor connection between the trading terminal and the broker’s server
- Error messages due to poor Internet connection
- Error messages due to unauthorized EA license key
If you discover any error messages after completing the process of how to install forex robot, you should correct them as appropriate to ensure optimal performance of your robot.
If you look at the error messages keenly, you can find solutions to most of the problems your EA could be experiencing.
The tabs found at the bottom of the trading platform contain various sections that log every action the EA is performing and thus can inform you of any errors.
All expert advisor activity and errors are logged in the “Experts” and “Journal” tabs at the bottom of MetaTrader terminal window. Additionally, all these messages are stored in the MT4 log files you can access anytime later should you need to troubleshoot your Forex EA.
After you’ve ensured the various parameters are checked and corrected error messages but your EA is still not working, you should re-read the instruction manual and double check that you followed the stipulated instructions.
Importantly, to ensure the success of the process of how to install forex robot MetaTrader, you should also try restarting your trading terminal.
You can close the MT4 platform and start it again after a few seconds.
This way, the terminal will refresh and pick the latest modifications made to it, ensuring peak performance.
If you are still experiencing problems, you can seek for technical support.
You can contact the EA vendor’s support department or search online for the specific issue you are experiencing with your forex robot.
Expert Advisor Vs Script
So, is there a difference between an expert advisor and a script? Yes, the differences are many.
Both EAs and scripts are coded using the MQL programming language but they are usually programmed for different purposes.
One difference is that scripts can be found in their own folder “Scripts” while EAs are found inside the “Experts” folder on your computer, as illustrated by the earlier screenshots.
In addition, scripts are available under their own menu in the MT4 trading terminal under “Navigator” panel.
Nonetheless, the largest difference is that scripts are programmed to be “one hit” while expert advisors are programmed to run continuously until stopped manually.
Expert advisors will make trade decisions each time market movements are detected.
On the other hand, scripts will stop running as soon as their stipulated tasks are finished (although there are techniques of circumventing this limitation).
A script will begin its work after being attached to a chart. And, when the work is done, it will be automatically removed from the trading platform. As such, scripts are best used for one-time tasks.
Another difference is that it’s possible to backtest the performance of EAs against historical data. This way, optimizing their performance is easier.
Conversely, the performance of scripts cannot be tested against historical data.
Expert Advisor Vs Indicator
So, is there a difference between an expert advisor and an indicator? Yes, the differences are many.
Expert advisors are applications developed to carry out trading operations on behalf of the trader, as earlier explained.
On the other hand, indicators are applications used for assessing prices and discovering patterns in price fluctuations.
While EAs can trade on behalf of the trader, indicators cannot—they are just important in identifying potential trading opportunities.
In fact, most EAs are developed using the price patterns that indicators are capable of identifying.
For example, an EA can be developed to open trades in the market whenever a crossover occurs between two moving averages indicators.
Basically, an indicator gives a representation of the past market behavior with the intention of forecasting the future behavior.
This way, it can be used to identify potential trade opportunities. Without indicators, trading in the forex market is like someone sailing in the middle of an ocean without a compass direction.
And, the trading signals generated by indicators can be represented by expert advisors, and used for automatically making buy and sell decisions.
The ability to use automated trading systems is one of the strongest features of the MT4 trading platform. More so, you cannot get into automated trading without Expert Advisor. This is why it is very important to learn how to install a forex robot. This article proved this process is simple, and anyone can do it regardless trading skills or experience level. After installing an expert advisor, you can use it for automatically trading in the forex market, and forget about the hassles of manual trading.