What is an Expert Advisor (EA)?
Expert Advisors are a collection of algorithms that can trade on their own. Often known as forex robots, they are popular tools for traders seeking to reduce psychology’s impact on their trading. They may do anything from providing you with a trading signal to automatically placing and managing the trade for you.
One of the most common trading strategies for prop traders is to use an Expert Advisor. However, not all prop firms permit the usage of EAs, but many do. FundYourFX, The 5%ers, and FundedNext are the top 3 prop firms that allow the usage of EAs.
However, expert advisors are not money-making robots that operate on their own, and there are a number of crucial considerations to take into account when selecting an expert advisor to use. Later on in the piece, we will go into further depth about that topic.
The majority of the prop firms that support EAs have regulations that are quite comparable to one another. It is acceptable to use EAs and indicators. This covers things like risk management tools, auto trading bots, and trade copying software.
1. FundYourFX
They earned the top spot on our list due to their adaptable trading guidelines. Depending solely on EAs is not advisable since they work better when complemented by other supportive strategies. You can keep trades overnight, trade news on weekends, and hedge positions, providing traders with greater flexibility to trade at any time of day using any trading style or strategy. This is the primary reason why they are at the top. You will uncover more reasons why they are the better option when you browse through the other prop firms on our list.
If you want to learn more about FundYourFX, you can read our full review here.
2. The 5%ers
You may be wondering why The 5%ers are ranked second, given they, like FundYourFX, accept EAs and have flexible trading rules. This is because they have much lower leverage, 1:6, compared to 1:100 in FundYourFX. Furthermore, the drawdown is only 6% against 10% with FundYourFX.
As previously said, you cannot rely just on EA and must also consider other aspects to support your trading strategy. As a result, we think it’s great that they allow EAs and have flexible trading rules, but our main complaint is the low leverage and drawdown. Another item to consider is the joining fee, which we explored in-depth in another post titled “How to Get Instant Funding for Forex?”. In short, the fee is cheaper in FundYourFX and you also get a bigger capital.
Read our full review here.
3. FundedNext
FundedNext is ranked third on the list because, in order to trade with them, you must first complete a challenge. After passing their challenge, you may begin trading with them and using EAs. The second reason is that they can only trade one hedge position at a time. The third reason is their drawdown, which is 5%. It is lower than The 5%ers and significantly lower than FundYourFX’s 10%. However, their leverage is the same as FundYourFX’s at 1:100.
Read our full review here.
In Conclusion
If using EAs is an important part of your trading strategy, you should pick the best prop firm to enhance it. And for that reason, we recommend FundYourFX. As an added bonus, you are allowed to copy trades from others and do tick scalping. You are also able to perform latency, reverse, and hedge arbitrage. And lastly, you can use emulators. As a note to remember, you can use them as long as it sticks to the rules. These are not allowed in The 5%ers, FundedNext, and most prop firms. This is why we feel their trading rules are very flexible. Probably the best in the industry.
