An Expert Advisor is a computer program that we designed to automate forex trading. There is a forex market open somewhere in the world 24 hours a day, seven days a week. You can use an expert advisor or a trading tool called a “forex robot” to carry out trades in our absence.

These tools enable you to make trades while you are working, asleep, or doing other things. Like other artificial intelligence platforms, they have some benefits and issues that you should be aware of.

If you’re prone to trade when your emotions get the better of you, an EA removes that factor from your trading. If you use an EA, your fears and drive for more profit won’t affect your choices when responding to trading signals; the EA will carry out trades based on our blueprint. It has no fear of loss or profit-making mentality; it only makes the trades for you.

An EA or robot can compare far more variables per second than a human can. Our brains are not fast enough to match an EA’s speed at weighing options.

Typically, drawdown risk is mitigated by having a well-diversified portfolio and knowing the length of the recovery window. If a person is early in their career or has more than 10 years until retirement, the drawdown limit of 20% that most financial advisors advocate should be sufficient to shelter the portfolio for a recovery.

While the extent of drawdowns is a factor in determining risk, so is the time it takes to recover a drawdown. Not all investments act alike. Some recover quicker than others. A 10% drawdown in one hedge fund or trader’s account may take years to recover that loss.

On the other hand, another hedge fund or trader may recover losses very quickly, pushing the account to the peak value in a short period of time.