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Monday, January 25, 2010

Forex Expert Advisor now used worldwide

By Howard G. Platt 111

In today's fast moving world, especially when it comes to trading stocks and making investments, investors who are looking to maximize their investments are also always looking for an easier way to track and trade investments that may help them achieve their goals.

Using what is called a forex expert advisor is a more and more common option being utilized by investors worldwide. Maybe you've heard about this technology, and are considering it as a tool for your investment activities. A growing option for investors who are not comfortable holding their investments for many years, but who prefer shorter turn-around time for potential profits, forex expert advisor programs are becoming more and more popular.

Forex expert advisor stands for "Foreign Exchange" and the "expert advisor" refers to the automated process instituted by a computer program or algorithm that analyzes the current price movement of targeted stocks, bonds and other investments. These formulas are written to take into account not only price, but look at timing, trends and other aspects that investors consider important to successful trading.

Primarily used for active trading; a pace of trading much faster than traditional trading where investors hold stocks for years and years. Active trading may involve multiple trades of the same stock on a daily basis to maximize the natural ups and downs of the price.

A child of retail online stock trading, forex expert advisors use highly complex formulas that examine price points, and other indicators. Some of the indicators include simple price points, but also more technical indicators like sales, market trends, and other predictions.

The fully automated forex expert advisor is, as you can imagine, a completely automatic program. This type of forex expert advisor uses the specific guidelines of the formula or algorithm, and requires absolutely no human to operate. Basically it makes decisions based on the formula, taking into account quantity, timing and price.

The robotic forex expert advisor is, as it is implied by its name, a completely automatic process. Using the terms of the software algorithm or formula, this style of forex expert advisor needs no intervention from humans, as it makes decisions based on the formula for traits such as timing, quantity and price.

On the other hand, signal-based forex trading includes human intervention, mostly when it comes to a trader that 'signals' the formula to make trades automatically based on the input of the live, human trader. This type of forex trading is a hybrid as it includes programming and human decisions to run the program. - 23217

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