currency pairs simultaneously

This can be a huge time-saver.

With an EA the forex technical analysis is handled by the forex trading logic programmed into the EA. The EA functions off of a set of predetermined "rules" which guide its operation. The EA enters the forex trade when the entry conditions are met and exits the forex trade when the exit conditions are met. Each EA has a different set of predetermined rules. Each rule is typically controlled by one or more user adjustable "switches". These switches are optimized at the time the EA is delivered to the user and can be saved as a switch settings profile. Once the default switch settings are saved, the user can make changes to the switch settings if they wish. It is important to remember that the best way to determine EA switch settings is through the back testing process.

Back testing is a process by which each switch or set of switches are methodically tested using actual past market data from your forex trading platform. While back testing takes much less time than forward testing it is still a painstaking and time consuming process but the results can be very revealing and informative. This process will tell you such things as, for example, which time frame(s) and currency pair(s) are the most profitable to trade.

Back testing is absolutely necessary in order to optimize the settings for an EA and as such it is very valuable process but the process is not perfect. Data mismatches can occur during the back test process which can degrade the results somewhat. The source of these data mismatches is not known at this time but it is an industry wide problem and the solution to the mismatch problem is being vigorously pursued.

Even with its flaws the back test process remains of utmost importance when it comes to optimizing the performance of any EA.

The time saving nature of using an EA coupled with the stress reducing effect that it has on the forex trader has boosted the popularity of this kind of forex trade automation.

It is just this kind of forex trade automation that is helping to fuel the explosive growth of the retail forex market. It is no longer necessary to stay glued to your computer monitor and "baby sit" your forex trades. Not only that but a properly designed EA can perform functions that even the most skilled and experienced forex traders find difficult. For example, there are EA's on the market today that can trade multiple currency pairs simultaneously. Other EA's can trade multiple forex hedge trades at the same time!