1. What is the core function of an Expert Advisor (EA) in automated trading?
It manually places trades for a broker It executes a coded trading strategy automatically based on predefined rules It guarantees profitable trades It replaces the need for a trading account
2. Why do many automated traders use a VPS instead of running an EA on a home computer?
A VPS makes the EA more profitable A VPS provides continuous uptime and stable connectivity so the EA keeps running without interruptions like power outages or sleep mode A VPS is required by all brokers A VPS eliminates the need for a trading strategy
3. When setting up a VPS for MT4/MT5, why is matching the VPS clock to the broker's server time zone important?
It changes the EA's win rate It avoids confusion around session times and scheduled news events It is required to install MetaTrader It increases the VPS's processing speed
4. What is a key structural difference between MT4 and MT5 that can affect how an EA behaves?
MT4 supports more asset classes than MT5 MT5 is order-based while MT4 is netting-based MT4 is order-based, allowing multiple independent tickets on the same symbol, while MT5 defaults to netting on most retail accounts There is no functional difference between the two platforms
5. What programming languages do MT4 and MT5 EAs use, respectively?
Python and Java MQL4 and MQL5 C++ and C# JavaScript and TypeScript
6. What is a signal copier?
A broker-run platform that manages master and follower accounts with built-in risk multipliers Software that automatically replicates trades from one source into another account without manual entry A tool that generates trading signals using AI A type of Expert Advisor that only works on MT5
7. How does a signal copier typically differ from a full copy-trading platform?
A signal copier is broker-integrated and manages full risk settings; a copy-trading platform is not They are functionally identical A signal copier is usually a narrower tool focused only on mirroring trades, while a copy-trading platform provides a broader master-follower management layer A copy-trading platform cannot copy trades in real time
8. In copy trading, what is the relationship between a master account and a follower account?
The follower account's trades are copied to the master account The master account's trades are replicated onto the follower account, often scaled by a risk setting They trade independently with no connection The master account only provides signals, never actual trades
9. What distinguishes MAM and PAMM account structures from standard copy trading?
They are used exclusively for manual trading They pool multiple investors' funds under a manager who trades on behalf of all of them, often with different allocation methods They require every investor to place their own trades They only work with AI-driven bots
10. What are the three core components of a complete trading signal?
Symbol, broker, and account size Entry, stop loss, and take profit Timeframe, indicator, and news event Lot size, leverage, and margin
11. What does cloud trading change compared to a self-managed VPS?
It guarantees better strategy performance It typically offers more convenience and less direct control, since infrastructure and maintenance are handled by the provider It removes all trading risk It requires no internet connection
12. Which of these is a legitimate reason to consider cloud trading over a standard VPS?
It always improves win rate Running several accounts or EAs where manual VPS maintenance becomes a significant time cost It eliminates the need for a broker It is always the cheapest option available
13. Why is the claim 'AI guarantees profit in trading' considered a myth?
AI models are too slow to trade effectively Financial markets are non-stationary, so past patterns a model learned may not hold in the future AI cannot be used in trading at all AI only works on stock markets, not forex
14. Why can a black-box AI trading bot be riskier than a transparent, rules-based EA rather than automatically safer?
Black-box models always lose money Opacity makes it harder to understand why something failed or predict behavior in unusual conditions, unlike inspectable rules-based logic AI models cannot be tested on historical data Rules-based EAs are illegal in most jurisdictions
15. According to a balanced view of AI in trading, what is something AI genuinely CAN help with?
Eliminating all drawdown Guaranteeing a fixed win rate Processing large amounts of data or identifying patterns faster than manual analysis, within its known limitations Replacing the need for any risk management
16. When evaluating an EA before buying or running it, what should a trader look at besides the headline profit number?
Only the seller's marketing claims Maximum drawdown and recovery time, backtest assumptions like spread and slippage, risk settings, and live versus hypothetical track record The color scheme of the EA's settings panel Whether the EA has the most followers on social media