What is an EA?
An Expert Advisor (EA) is a software program that is specifically written for the MetaTrader charting/trading platform. It executes trades based on the rules of the program. It is written in the MetaQuotes Language, a proprietary programming language.
The Benefits of Automated Trading
Some of the best traders in the world love to use EAs for these key reasons:
Trading programs remove emotion from the equation. These advisors execute their programming and eliminate human error.
For some Forex traders, making decisions is often a stressful experience. Programs also remove the stress associated with discretionary trading.
Expert Advisors can execute trades faster and more reliably than any human.
Do You Need Automated Trading?
The forex market is open 24 hours a day and it is physically impossible for you to trade during this entire time. You also have better things to do, like sleep. With an Expert Advisor, the job becomes easy because it can trade whenever the markets are open.
There is a downside however. Just like with human traders, computers can make mistakes too. Not computational mistakes, but sometimes the power can go out or a computer may lose its internet connection.
An automated trading program must also be carefully monitored to be sure that it is performing within acceptable risk tolerances. This is something you will only understand if you have thoroughly tested your system.