Classification of Advisors
An Expert Advisor is an ordinary algorithm programmed on the basis of the trading system that you own or plan to master. It can be said that in order to use an Expert Advisor, you need to have a trading system or at least study it in order to know on which market this trading system works and on which market it loses badly.
Advisors are not yet any standard, so we can talk about classification conditionally. All advisors can be divided into several groups:
Pips and scalpers are so-called scalping advisors
This group of Expert Advisors works intraday on the lowest intervals. According to the trading principle, the Expert Advisors make a large number of transactions, but take minimum profits. It can be said that such Expert Advisors work quite steadily, but depending on the trading algorithm, you should know in which market to run them. The danger for such Expert Advisors are fast markets with requotes, in such a situation if scalper enters in the opposite direction, he just won't be able to close the loss.
Trend Advisors
These advisors are simple, they determine the direction of the trend and trade according to it, the trend. Dangerous areas for such Expert Advisors are flat areas. Here everything depends on the algorithm, on its ability to determine the trend and its end. If a trader has a simple knowledge of technical analysis, the success of such Expert Advisors increases.
Averaging Expert Advisors and Expert Advisors working on the basis of the Martingale principle
The essence of this principle reminds of a casino game with betting only on "red" or only on "black" and increasing the bet in case of failure. This Expert Advisor in skillful hands of a trader can work quite stably, but potential risk is proportional to potential profit. The only thing that can be said here with a drop of irony is that EAs based on this principle are absolutely win-win, provided that you have an infinite amount of money and time.
Multicurrency Expert Advisors
Expert Advisors of this group differ from the previous ones in that they work on several currency pairs. Such trading systems allow to organize risk diversification, otherwise they can work according to one of the principles described above.
The last type of advisors are combination advisors
This class of Expert Advisors includes several trading systems in its code, which actually increases the chance of success or speed for losses. It all depends on the trading system used and the trader's knowledge.