What is an Expert Advisor (EA)?

Understanding Expert Advisors (EAs)

An Expert Advisor (EA) is an automated trading program—most commonly associated with MetaTrader—that executes trades according to predefined rules. EAs remove manual decision-making, enabling consistent execution and allowing traders to run multiple strategies simultaneously.

Building and Deploying

• Define the idea: Outline entry, exit, and risk rules grounded in a proven edge.
• Code the logic: Use MQL, Python bridges, or APIs. Document assumptions and parameters.
• Backtest properly: Employ high-quality tick data, account for spreads and slippage, and avoid look-ahead bias.
• Forward test: Run on demo or small live accounts to compare real-time results with backtests.

Risk Management

Set maximum drawdown limits, daily loss caps, and manual override procedures. Diversify across uncorrelated EAs to smooth performance and periodically review whether market regimes still suit each strategy.

Due Diligence

Many commercial EAs are black boxes with inflated marketing claims. Demand verified track records, understand the underlying logic, and test thoroughly before risking capital. Keep source code versions controlled and document changes to avoid accidental curve-fitting.