Everything You Need to Know About Expert Advisors

If you have been trading in the global forex market for some time now, chances are that you have experienced some bumps along the way. No matter how experienced you are in the industry and at executing profitable trades, sometimes all of us need a bit of guidance and assistance, and one of the most effective ways of receiving this guidance, especially in the global forex market, is through the use of EAs or Expert Advisors.

Traders from across the globe have reported that properly utilizing the power of EAs not only increases control over their portfolio but also equips them to make effective decisions at key crossover points. 

Thus, in today’s article, we will take a closer look at the world of EAs and how you can install and start using one today on the MT4 platform. 

Without further ado, let’s get started. 

What Is an EA?

One of the first and most important aspects we need to understand is the meaning of an EA or expert advisor, especially in the context of the global forex market. 

In simple terms, an EA or expert advisor can be understood as a software which either intimates you about key decision crossovers, as in when to make a particular trade or executes the trade for you, based on preprogrammed conditions. Essentially, you can understand an EA as being a personal assistant who intimates you at moments when a decision needs to be made or performs functions based on your pre-defined orders. 

Mostly, EAs are deployed on the MT4 and MT5 platform, and you have the option of either downloading one and customizing it to your needs or even developing one from the ground up to match and fulfill your trading requirements. 

Advantages and Disadvantages of Using an EA

Now that you know the essential idea behind an EA, shared below are some of the most significant advantages and disadvantages of using one in your day-to-day trading. 

An expert advisor, at its essence, is a polarizing tool, meaning that there is a clear line of distinction between the proponents and detractors of a trade. If used correctly, an EA can prove to be a highly effective tool which essentially scans the market 24/7 and intimates you about opportunities which might have developed overnight. Along with this, most EAs follow a strict trading strategy, which is designed to generate a profit, and since the detection of promising signals are preprogrammed into the software, it can effectively nullify your bias and let you execute trades effectively without emotion coming into the way. 

Although the rigidity of an EA can prove to be a real boon in certain situations, however in others, it can cause you to lose out on the opportunity to evaluate a trade better since most EAs make their decisions based on a certain number of factors, which are limited compared to the human brain. For example, a common drawback of EAs is not being able to process news as and when they are published, and since every money market essentially runs on human emotions, factoring it out might prove to be a challenge rather than an opportunity. 

Additionally, since at the end of the day, an EA is essentially a piece of software that has been built on hypotheses and tested within a simulation, there is no way to guarantee its efficiency until real money is at risk. For example, if you wish to design an EA from the ground up to reflect your trading strategy, and it outperforms your expectation in the simulation, there is no 100% guarantee that in live trading, it will consistently generate profit. One reason behind this being that in live trading, there are a lot many variables at play as compared to a simulation.  

Aspects to Consider Before Using an EA

One of the most important factors you should take into consideration before using an EA is to first test it out in a demo account. If you have purchased the EA from the MetaQuotes store or you have a custom-built one, using it at a demo account will give you the opportunity to reflect how this tool can assist you in your trading process. 

Although the test in a demo account will be limited due to the presence of tight sample size, using it regularly (at least for a week or two) in a demo account will give you the opportunity to get comfortable with it across the verticals of interpreting the recommendations it provides along with understanding how best you can use it alongside your trading strategy. 

Along with this, another important consideration to keep in mind is the fact that EAs can often process a limited amount of information at the same time. As we explained in an earlier example, even the most sophisticated of EAs cannot process news and political information, both of which always have a huge impact on any trade since the entire money market essentially runs on human emotions. 

How Can You Create an EA of Your Own

Now that you know the basics of an EA, along with the points you should keep in mind before using one, shared below is a step-by-step process on how you can create an EA of your own.

The Header is the start of code in the EA framework, and this is where the most significant information is stored. While creating your Header, you can include your indicators and parameters within the Header, followed by inputting all the money management rules you would like your EA to follow, along with any global variables such as stop. 

The next part of the coding process is the special function initialize and special function start. Although these require in-depth technical knowledge to code, you can understand them as being the section which is responsible for retrieving the value of your chosen indicators, address the trading logic you specified earlier in the header section, and also address any current signals and orders. 

The remaining two parts, that is, the special function de initialize and control, are self-explanatory, and they dictate when the initialization process will stop, followed by what control needs to be exercised, whether to notify you with a trade recommendation or simply execute the trade on your behalf. 

Essentially, when you are designing your EA, you need to ensure that the entire process runs on a continuous loop and is not executed only once in a while. 

How to Purchase and Install an EA From the MetaQuotes Store?

Creating an EA right from scratch isn’t for everyone, mainly given the fact that it is complicated and time-consuming. However, a better way through which you can get access to an EA is by downloading one from the MetaQuotes store. Although the ones you come across won’t have the same level of customization as the home-brewed one since it is faster to access, you can get it up and running in less time.

In order to install the EA on your trading platform, follow the below-mentioned steps. 

Step 1: Transfer Your Files

Once you have purchased and downloaded the EA from the MetaQuotes store, locate it on your computer (generally, it will be located in the Downloads folder). Once you have come across it, copy the contents of the folder and navigate to your system’s C Drive, where you can find the MetaTrader folder. Locate the “Experts” folder and paste all the contents by agreeing to all the admin requests presented by your system. 

Step 2: Install the EA 

Once you have successfully transferred the files, the next stage of the process is to start MT4 and locate the Expert Advisor section. Look out for the plus sign and click on it to view a list of the now available EAs to be installed. Select the EA of your choice and drag it onto the charts to activate it and start its operations. 

Step 3: Fine-Tuning to Your Requirements

In order to get the best results out of your EA, you will need to fine-tune its settings. In order to do this, locate the gear icon, adjust the parameters and click on OK to save the settings. Once done, your EA should ideally start performing as per your expectations. 


Getting an EA to assist you in your trading journey is a wise decision; however, you should always be mindful of the fact that at no time should you trust the EA’s advice for all your trading decisions. You always need to remember that the EA is just a tool to assist you in your decision-making and not actually make them for you. 

MT4 vs MT5 : An in-Depth Comparison

If you are looking to start a forex brokerage or already have a brokerage, one question which must have definitely crossed your mind is the difference between MT4 and MT5. A lot of times, even the most experienced of brokerages confuse these two offerings as being successors of each other; however, the reality could not be further. While both the MT4 and the MT5 platforms allow your clients to trade on the global forex market, each of them arrives with a different set of functions and knowing the difference between them is a crucial factor in your success. 

Thus in today’s article, we will share with you an in-depth comparison between the MT4 and MT5 platforms so that you can decide which one suits your requirements better. Without further ado, let’s get started. 

What Is MT4 and MT5?

Before we dive deeper into the comparison between these two platforms, one of the first and frankly most important aspects to understand is the essential functions they offer and the market conditions which motivated their development.

MT4, also known as MetaTrader 4, is a trading platform which was released by MetaQuotes Software in early 2005 to give traders across the world the opportunity to trade in the global forex market. Designed with a beginner first mindset, MT4 quickly became the go-to trading platform for brokers who wanted to execute global forex trades. Due to its simplistic design and backward compatibility, MT4 still is a first choice for many brokers globally.

Contrary to popular belief, MT5, which was released in 2010, is not an updated version of MT4 but rather an independent offering in its own right from the house of MetaQuotes. MT5 was designed with a more advanced and expert mindset, and its primary function was to allow brokers and traders the opportunity to trade in currencies, CFDs, options, futures and more, all of which are not accessible via the MT4 platform. The infrastructure for MT5 is more complex, thus allowing brokers to perform more complicated functions by offering multiple timeframes, pending order types, built-in tools and so on. 

Advantages and Disadvantages

Now that you are familiar with the essential features of both the trading platforms and why they were created in the first place, let us take a closer look at the advantages each of them has over the other. 


a. Real-Time Access (MT4)

One of the best features of the MT4 platform and undoubtedly the most profitable for brokers is the access to real-time information. MT4 platform allows the broker to access real-time information from the global forex market and execute trades accordingly. The MT4 platform boasts of a separate window which constantly displays real-time information, such as the various listed currencies and stocks along with their current buying and asking prices. Combined with the Depth of Market feature, the MT4 platform essentially empowers the broker to curate their plans in real-time and accordingly adjust their trades.

b. Trade Relevant Features (MT5) 

The MT5 platform is an immensely powerful tool which not only arrives with a variety of features already present in the MT4 platform, but it takes them up a notch via inclusions such as four different order execution types, options to have multiple trading positions and so on. For instance, the MT5 platform allows traders four different order execution types, namely Request, Instant, Market, and Exchange; in contrast to only one type being present in the MT4 platform. Along with this, the MT5 platform additionally allows you to have numerous open positions such as opposite and or same direction within the same trading instrument. 

c. Impeccable Security and Stability (MT4)

Since 2005, the MT4 platform has won several awards and accolades across the globe for the platform’s impeccable safety and stability features. A 129-bit key encrypts all the data present in the platform, along with communications between the client and server. The key additionally supports RSA digital signatures, which ensures that your IP (Internet Protocol) address remains hidden at all times while trading using this platform. Along with security, the platform also allows for high stability, which sets the stage for speed execution, meaning you can execute trades at a faster pace and keep up with the pulse of the market. 

d. Charting and Predicting (MT5)

One of the key determinants of a successful trade is being able to expertly analyze the market movements and forecast the trend. However, in order to run this level of analysis, traders often need access to sophisticated tools which are missing from the MT4 platform. On the other hand, the MT5 platform comes equipped with a variety of tools and data analytics plugins which allows you to seamlessly run an expert analysis of market trends and forecast price movements, setting the stage for more profitable trading. 

Some of the salient features of the MT5 platform include


However, similar to other trading platforms, both MT4 and MT5 have their fair share of disadvantages and skepticism, the most significant of which are as shared below. 



Comparison B/W MT4 VS MT5

Partial Order Filling Policies
Order Fill PolicyFill or KillFill or Kill Immediate or Cancel, Return
Pending Order Types46
Depth of Market
Times & Sales ( Exchange Data )
Technical Indicators3038
Graphical Objects3144
Time Frames921
Economic Calendar
Email System
Transfer Funds Between Accounts
Embedded MQL5 Community Chat
Strategy TesterSingle ThreadMulti-threaded + Multicurrency + Real ticks
Multilingual Unicode
Symbols / Securities1024Unlimited
Supported MarketsForexFOREX / Futures / Options / Stocks / Bonds
Exchange Trading


In conclusion, both the MT4 and the MT5 platforms are advanced trading tools preferred by brokerages across the globe. Now that you have the facts in front of you, which one would you prefer to choose for your brokerage? Let us know in the comments section down below.