If you are looking to become involved in forex trading but want to do it the right way, it’s time to get serious. That means having a virtual private server (VPS) and using an expert advisor (EA) algorithmic system. What are those two critical components and why should you have them? That question should be on every trader’s mind. Here are the basics for those who are unfamiliar with the terminology and rationale for choosing this method of approaching the forex markets.
What is a VPS?
A virtual private server is a server that you share with several other users. However, it is essentially private, for your own purposes, because you have a dedicated amount of space reserved just for your use. Your server can operate totally independently from the other servers on the same machine. You can reboot the system anytime you want, pick your own operating system, and exercise complete control over it. What’s more, with a VPS, you are allotted a specific amount of transfer allowance, RAM, and space for your exclusive use every month.
What is an EA-Based System and What are its Advantages?
An expert advisor is basically a robot that removes the human emotion from the buying and selling process. You can set the EA algorithm to react to specific price action and other designated indicators. The goal is to set it up to make programmed trades for you during those times when you can’t be at the controls, making live decisions.
By far, the main advantage of EA systems, combined with a VPS arrangement, is their ability to run constantly without the need for your PC to be connected to the Metatrader server. Its automated trading defined by your own parameters, indicators, and rules. When you don’t have the time or access to Metatrader, your EA does the work for you.
Advantages of Virtual Private Servers
Why should every conscientious trader use a VPS? For starters, they are the ultimate in convenience, highly stable, and allow full flexibility for the user. Having your own computer space, even if it is virtual, protects you from a multitude of potential problems that afflict those who use their desktop computers to make trades. If you are using automated systems like EA to buy and sell for you, your private server can function even when you have no electrical power. It continues to place your orders according to the rules you’ve defined.
Plus, you can trade any time of the day or night and do so with a very high level of security. One of the most attractive features is the reduction of slippage because you’ll get your orders in faster and catch the exact price levels you’re aiming for on a particular transaction. If you want to read more on forex VPS setup, spend a few hours browsing your platform’s educational section and dig in to the details. It’s worthwhile to learn exactly how VPS protects your privacy and is able to guarantee almost no downtime. Those two factors are paramount for anyone who puts their funds at stake in the market and can’t afford to worry about system breakdowns, hacks, and power outages.
The Variety of Expert Advisor (EA) Products is Huge
As noted above, EA systems offer dozens of advantages, like continuous trading, fully automated performance based on whatever rules and indicators you set. But, there’s much more to EAs than just those two benefits, hefty though they are. Often overlooked by traders is the wide variety of expert advisor products in the marketplace. Some are downloadable apps that cost nothing while others are high-end affairs suitable only for advanced traders. The benefit for everyday forex enthusiasts is that there is something for every level of expertise. No two EAs are alike, but most of the better versions contain at least several of the following features:
- Complete automation that calls for no specialized knowledge
- Algorithms created by experts who understand forex and how to build agile apps
- Models market behavior and adapts itself accordingly
- Includes a built-in risk control capability
- Can be set up with all varieties of stop-losses and trailing-stops
- Has the ability to sell short, perform scalping trades, and learn from its mistakes
- Offers both semi-automatic and fully automatic trading
- Sends texts informing you of the current trade status at set time intervals or whenever it opens or closes a position
- Needs nothing except a standard internet connection in order to do its job
Taking the time to do comparison shopping is a good idea, as is taking advantage of free trials in order to get a feel for how a particular EA operates in the real world.