What is an Expert Advisor (EA)?
An Expert Advisor (EA) is a software program used in algorithmic trading. It works within trading platforms like MetaTrader and helps automate trading strategies based on predefined rules. Traders can create or buy EAs to assist with market analysis, signal generation, and trade execution without manual intervention.
Why do traders use an Expert Advisor?
EAs are popular among traders who want to automate their trading and take advantage of the speed and accuracy of algorithmic trading. Expert Advisors help traders feel more at ease when trading in financial markets. Traders don't always have to make decisions or perform complex technical and fundamental analyses. The necessary calculations are already built into the program, so the Expert Advisor takes care of them automatically.
Can traders use Expert Advisors in funded trader programs offered by the Prop Firms?
As we have explored in our previous posts there is no one-size-fits-all solution, when it comes to selecting the right prop firm, and finding the firm that suits your needs is critical to a trader's success. If you don’t want to miss out on what could be a great opportunity for you and your forex trading plans, please keep reading as we are here to help guide you to decide smartly and wisely.
Although, many funded trader programs do permit the use of Expert Advisors and allow traders to employ algorithmic trading strategies and bots, not all prop firms permit the usage of EAs. Additionally, we need to keep in mind that even with firms that allow the use of EAs, depending on the specific company, traders, still may need to configure their Expert Advisors in accordance with particular rules and guidelines.
List of Prop Firms Allowing Expert Advisors (EA) Trading
| Prop Firm | Expert Advisor (EA) Trading |
|---|---|
| FunderPro | |
| FunderPro Futures | |
| FundedNext | |
| FTMO | |
| Apex Trader Funding | |
| Bullwaves Prime | |
| the5ers | |
| SabioTrade | |
| Hola Prime | |
| NeomAAA Funds | |
| ThinkCapital | |
| UltraCap Trading | |
| TX3 Funding (Toptier Trader Rebrand) | |
| Topstep | |
| Blue Guardian | |
| FTUK | |
| Funded Trading Plus | |
| Elites Funding | |
| EverBlue Trader | |
| PIP Traders Funding | |
| Bold Fund | |
| Clarity Traders | |
| Upcomers | |
| TradingFunds | |
| 1of1 Funding | |
| Alpha Trader | |
| PROP365 | |
| Funded Squad | |
| Propel Capital | |
| Plutus Trade Base | |
| Tycoon Funded | |
| Funded Prime | |
| SuperFunded | |
| TakeCap | |
| Earn2Trade | |
| City Traders Imperium | |
| E8 Markets | |
| Lux Trading Firm | |
| Goat Funded Trader | |
| The Trading Pit | |
| Tradexprop |
Please keep in mind that, even if a prop trading firm permits the use of Expert Advisors, it is strongly recommended to directly communicate with the firm and gain their explicit approval before employing them. Furthermore, you need to be aware that by using third-party Expert Advisors there is a chance to exceed the maximum allocation rule that has been set by the prop trading firm. The reason for that is the simultaneous usage of the same third-party Expert Advisor by a big number of users that is going to lead to a higher risk of breaching the allocation limit.
Conclusion
To summarize, if using Expert Advisors is essential for your trading strategy, selecting the right prop firm to support and improve your approach is important.
FAQs on Prop Firm for News Trading
The short answer is Yes. However, you do need to keep in mind that using a third-party Expert Advisor means other traders may already be using the same strategy causing the exceed of the maximum capital allocation rule.
The short answer is Yes, as long as you use the right robot. Trading with a Forex EA robot is not an easy process and definitely not suitable for all traders. The most successful traders that incorporated EAs as part of their strategy usually examine at least half a dozen robots in order to be profitable.
Automated trading as a concept is not only legal but more than two-thirds of the overall activity is based on that. Regarding prop trading you should always check if a prop firm allow automated trading and the incorporation of EAs as part of your strategy.
Using an EA has definite advantages. Firstly, an EA can monitor charts 24/7, open and close positions saving traders a huge amount of time and make their job much easier. If you add to the equation that a Forex EA robot operates without emotions, and with a rational and consistent decision-making makes them a useful tool but not foolproof.
Even if a prop firm allows the use of Expert advisors it is always wise to contact them and find out if there are certain types of strategies that are not allowed. For example, if a prop firm doesn’t allow high frequency EAs, a trader can configure the trading robot and limit the number of orders it sends per day.
