Strategies Choosing a Broker Right For Your EA

Expert Advisor (EA) forex is a software add-on that allows the trading process and analysis on MT4 trading platform automatically. With EA, we can catch every trading opportunities that arise 24 hours a day, even though not being in front of the computer. However, choosing the EA it is not easy, especially in choosing a suitable broker for EA.

Sometimes the EA look nice, but after many bought and installed it turned out did not fit with our broker. There are also incidents where the EA has been running a while, turns out when will the profit be taken even banned brokers because called uses the strategy the arbitration is prohibited. To avoid this, here are some steps we can do:

1. Know strategies used EA
EA is obtained from free, buy or make your own. Whatever it is, the first step in choosing a suitable broker for Your EA is to figure out what strategy used by robots, and if trading conditions at your broker allows for EA is executed.

There are several popular strategies used in the forex trading robots, including the following :

• Technical Indicators

EA users technical indicators use a pattern or chart patterns technical indicators for open and close positions. Some of the popular indicator for EA include: Moving Average, MACD, Momentum, Stochastic, Candlestick, etc. If the EA you are using technical indicators, then it needs to be noted is the interval of time that means: do the indicators applied in the short term chart of M1, M5, M15, M30 medium, long-term or H1, H4, D1, W1, MN.

The smaller the chart, then need broker with high accuracy. But in General, brokers usually allow this strategy because the daily trading volume of only medium.

• Arbitration

Arbitration is arguably one of the most complex EA strategy because many brokers do not openly forbid arbitration, but just mention it in the mildest Terms and Conditions that are not necessarily read trader while registering. As a result, many traders are not aware when he violates.

What is Arbitration? Simply put, arbitration strategies users using EA 2 the broker (or more) to open buy and sell on the same Currency pair and attempting to profit from the difference between the two quotations in the broker. If EA is using arbitration, then you need to choose a broker who allowed this strategy, while also allowing high-volume trading.

• Scalping

There is not much different with the ala trading scalping EA users generally, scalping strategy will also open/close dozens to hundreds of trading positions in a day in order to capture profits from small movements in the Currency pair. Need a broker that allows High volumes of Trading and Fast Term Trading Strategy. Avoid brokers that require quite a long time before open positions can be close.

• Hedging/Grid

Forex trading robots that use Hedging seeks to profit by placing buy and sell orders in on certain intervals above and below a certain price level. These orders are usually placed at a distance of 10 or 15 points, thus creating a grid. The grid is not a problem, but to note here, not all brokers allowing hedging.

• Dollar Cost Averaging/Martingale

Investment strategies Averaging/Martingale essentially raised the number of lots on the second open position if the open position first loss. If used the ordinary man, this strategy is high risk, and when it is used forex trading robots will be more high risk anymore. However, the Expert Advisor user this strategy usually can be used anywhere because brokers can run medium or long term, with medium or high trading volume, depending on the setting of his money management.

2. Speed of execution Brokers
After learning the strategy of EA, the next step is to investigate the broker. How fast is the broker accepts and executes the order? Does the broker provide own VPS, VPS or whether you should hire from outside? Note that the longer an order is confirmed, then the more likely target target price escaped to come by, especially if the EA using the Scalping strategy.

3. Last Look/No Last Look
Last Look this means that brokers have the right to refuse an order within a certain period, while No Last Look means brokers will honor any price quotations that appear, despite slippage occurs later. This rule does not usually disseminated in promotion of the broker, so be aware of Terms and Conditions.

4. Broker DD/STP/ECN
DD broker will execute trading on his own desk, whereas STP/ECN broker will transfer orders directly to the providers of liquidity or bank affiliates. Remember you will not be keeping an eye on EA 24 hours a day, then it is important to know who is there across the table there and whether they can be trusted.

5. Do EA Backtest
Never use forex trading robots without doing a backtest. Likewise, in choosing a suitable broker for EA, need a backtest with historical data on the broker. It is important to ensure that the performance of the EA will run seamlessly in the same liquidity conditions.

6. Leverage
There is no fixed rule about leverage, but it is clear that leverage will determine whether or not EA or smooth running. If forex trading robots that you buy good trading performance samples indicate with a capital of 10.000 USD and brokers with a leverage up to 1:500, but you try to use it in the broker with the maximum leverage 1:200, then it is likely his money management will not fit. The author of the EA could profit, but your loss.

7. Spread/Commission Fee
Examine the magnitude of the spread of this vital trading and commissions. In particular, because of the spread is the difference between the bid price and the offer of a broker. If trading costs are too high, then it can turn back the results of trading EA, even before success in backtesting.