EA or Expert Advisor is a software program that is programmed with a set of rules that automatically opens and closes trades based on analysis of the Forex Markets. It is estimated that 80% of hedge funds, banks and institutional traders now trade using at lease one form of Expert Advisor. "
Whilst I firmly believe there is no such thing as a free lunch, there are some highly successful automated trading strategies that can indeed generate a good secondary or indeed a primary income.
My journey started as a casual currency trader, after spending a significant amount on learning about the forex markets and indeed the different trading methods, early on I realized the potential of making significant profits for forex. The real question was would I as an individual really have what it takes to make it as a profitable trader? Many commentators state the 90/10 rule – 90% of traders fail and I can understand why, its easy to make money from forex, its much harder sticking to a successful strategy, managing money and indeed sustaining and building on profits – the reality is it os VERY hard making consistent money from forex.
Even though I enjoyed the success I had with profiting from Forex, the insolvency, boredom and lack of discipline started to affect my performance and after months or deliberation I decided to start looking for alternative trading strategies – ones that did not involve emotions at all. I started to scour the markets for automated trading strategies, sometimes EA's which are more commonly known as expert advisers. With the growth in electronic trading platforms and large institutions trading with automated strategies it was time for me to try my hand at this.
My objective was relatively simple, to start to test and implement a fully automated trading strategy. This strategy included a portfolio of EA's and the management of EA's on a remote server. My systems went live in September 2008 and I can report with the correct setup it is quite possible to profit regularly with an automated strategy.
My portfolio today consists of 5 EA's running on 2 different virtual servers, the EA's themselves run on different time frames and operate different strategies on a number of treaties and instruments. Essentially I am managing and spreading risk much like a hedge fund or investment fund would operate but applying the concepts to EA trading. I would highly recommend a visit to my blog to see how the EA's are performing and my setups.