September 26, 2019, | AtoZ Markets - An automatic trading system, also known as an expert advisor (EA) is an essential tool for any forex trader. The ability to make trades precisely using the EA tools is what differs the successful traders from the average FX trader. An automatic system allows the trader to leverage every opportunity in any market at any time.
Automation in the forex trading world is also a huge convenience for traders who lead busy lives. Their EA trading tool can execute forex trades whilst the human trader is working a full-time job or having a leisure time with family and friends.
As we, at AtoZ Markets, believe this is a topic of great importance, we decided to reach out to the specialists to expand more what "new" colors the future of forex sounds to like.
Royal's Chief Market Analyst, James Trescothick elaborated more on this matter.
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What kind of Forex broker are you?
James Trescothick: We’re a fully-fledged broker that provides access to liquidity for different asset classes at superior trading conditions and costs and we’ve been welcoming traders since 2006. Since then Royal’s been on an upward path when it comes to supporting and educating traders and offering them all the tools possible to succeed in the online trading arena. With a new website about to be launched, complete with a brand revamp, we’re going to blow trader’s minds.
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Do you allow clients to use Expert Advisors (EAs) automated tool on your trading platform?
James Trescothick: Indeed we do, on our MT4 desktop, webtrader and mobile trading platforms, our MT4 platform also has a list of 3rd party EA’s with back testing for our clients to choose from and purchase directly through the platform. We even offer VPN hosting which is popular among EA traders.
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Is there any risk involved in using EAs?
James Trescothick: Trading is risky full stop. So trading with EA’s doesn’t make trading any less risky. Just like any other form of technology EAs have their limitations, but it really depends on the type of trader and their trading goals.
Royal’s trading technology support EAs and algorithmic trading and allow our clients to build their own strategies on the Royal suite of trading platforms because we know that automated and algorithmic trading is the way to go for many professional traders in 2019.
However, I believe that traders should always do their research and apply strong risk management techniques, the same way they do when trading without EAs.
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Do you think automated trading using EAs have the potential to replace traditional trading method?
James Trescothick: Since the dawn of the industrial revolution there has always been the fear that machines will replace human workers and throughout history that has been proven to be the case.
In the trading industry, however, there has been a separation between the institutional and retail sectors; we are seeing that many large banks and other financial institutions are replacing the typical wall street trader with these AI programs. In fact it is estimated that nearly 80% of the world’s forex trading is made by algorithmic programs.
There are many reasons why they would rely on automated trading instead of human traders, starting with the fact that they don’t have to pay passive salaries or worry about human error which is mainly derived from emotions. So, even though automated trading is not totally inflammable in many ways they serve companies better in the long run.
When it comes to the retail sector, we’ve been seeing that humans and manual trading are what continues to drive this industry. Nevertheless, we have seen that in the past 2 years many retail traders have taken interest in automated strategies which have a good back testing record and a good live trading record. With technology soaring, it seems many clients will soon start converting to automating their strategies so they don’t spend a lot of time behind a screen making emotional decisions.
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Which account type is best for EA trading?
James Trescothick: I can’t recommend one account type over the other, all of Royal’s account types are suitable for EAs as they all offer deep market liquidity & have been designed with our efforts to provide all our traders with the best execution and market pricing. Some EA’s on the other hand, do require account types that have lower spreads or commissions to perform well.
So, all traders can go ahead and choose whichever account is more suitable for their trading goals and automated/EA strategies.
About James Trescothick
James Trescothick a.k.a Lord Tres – is a market wiz who loves financial events as much as he loves Manchester United, & has the rare talent of making everything super fun. His 20 years in the financial services industry across the globe, make him the man for the job.
Having started in the mortgage industry, he went on to become a qualified mortgage broker who specialized in buy-to-let mortgages; that is before moving into pensions and alternative investments.
Lord Tres entered the online trading arena over 15 years ago, trading for a prop company through the Dubai Gold and Commodities Exchange, before running a sales floor at the Philippines Stock exchange.
His specialties are trading & markets education as well as market analysis but of course his best quality is his ability to make the complex markets seem fun.
About Royal
Royal, an award-winning, multi-certified, international online Forex & CFDs broker welcomed their first-ever trader over a decade ago in 2006. The global broker is headquartered in Sydney, Australia and regulated by ASIC (Australian Securities & Investments Commission), CySEC (Cyprus Securities and Exchange Commission), and the Lebanese CMA (Capital Markets Authority) with offices in Cyprus, Lebanon and the United States of America.
With a fantastic team of over 120 talented and dedicated people, Royal has won numerous and prestigious awards and has seen trillions of dollars’ worth in trading volume pass through. They have ridden the highs and the lows of the markets, educated thousands of people from literally every walk of life on how to trade, and worked incessantly to give peace of mind to all their traders. Most importantly; they’ve done it all with a smile.