Expert Advisor (EA)
An automated trading script (bot) running on MetaTrader 4 or 5 that executes trades based on pre-programmed rules without manual intervention.
What is an Expert Advisor (EA)?
An Expert Advisor (EA) is an automated trading programme that runs on the MetaTrader 4 or MetaTrader 5 platform. Once activated on a chart, it can monitor the market and place, modify, and close trades automatically according to its programmed strategy.
Why prop firms have EA policies
Firms are primarily concerned with:
- HFT EAs: Ultra-fast arbitrage bots exploiting platform latency
- Copy trading EAs: One trader's signals replicated across many accounts simultaneously
- Tick scalping: EAs holding positions for seconds to exploit spread/price anomalies
What is usually allowed vs. banned
| Allowed | Banned | |---|---| | Self-built EAs with genuine strategies | HFT / latency arbitrage | | Commercial EAs with normal hold times | Copy trading from a signal provider | | Trade management EAs (trailing stops) | Tick scalpers |
Platform alternatives
On NinjaTrader or Tradovate (Futures), the equivalent is an automated strategy or NinjaScript.
How Firms Apply This Rule
FTMO allows EAs but bans HFT. FundedNext allows EAs. Apex Trader Funding (futures) permits automated strategies. Always verify current policy before purchasing.
Related Terms
News Trading
A strategy of trading around high-impact economic news events. Many prop firms restrict or ban it due to extreme volatility and slippage risks.
Scalping
A trading style focused on capturing very small price movements by opening and closing positions within seconds to minutes, often involving high trade frequency.
Copy Trading
A method where one trader's positions are automatically replicated on another account, banned by most prop firms to prevent coordinated manipulation of their risk books.