{"term":{"slug":"ea-trading","term":"EA Trading (Expert Advisor)","definition":"Using automated trading algorithms (Expert Advisors) to execute trades on a prop firm account. Most major prop firms allow EAs, but some impose restrictions on high-frequency strategies or require disclosure.","extendedExplanation":"Expert Advisors are automated trading programs that run on platforms like MetaTrader 4/5. They can execute trades based on pre-programmed rules without manual intervention. The vast majority of prop firms allow EA trading -- FTMO, TopStep, Apex, FundedNext, and The5%ers all permit it.\n\nHowever, there are important nuances. Some firms prohibit EAs that exploit latency arbitrage, tick scalping (holding trades for only seconds), or high-frequency trading strategies. Others restrict EAs during news events even if manual news trading is allowed.\n\nEA traders should also be aware of consistency rules. An EA that generates most of its profit from a single large winning day may violate consistency requirements even though the trading was fully automated. Additionally, the same EA running on multiple funded accounts could trigger copy trading detection if the entry/exit timing is identical across accounts.","exampleWithNumbers":"An EA scalps EUR/USD on FTMO $100K. It takes 40 trades/day with a 65% win rate. Average win: $120, average loss: $80. Expected daily profit: (26 wins * $120) - (14 losses * $80) = $3,120 - $1,120 = $2,000. Daily loss limit is $5,000, so 14 consecutive losses ($1,120) stay well within limits. The EA passes Phase 1 in 5 trading days.","category":"trading","relatedTerms":["copy-trading","funded-account","consistency-rule","prop-firm"]},"_links":{"self":"https://runvigil.app/api/glossary/ea-trading","page":"https://runvigil.app/learn/ea-trading","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}