Field Guide to Trading Terms

Expert advisor vs Trading signal


Look-alike pair

Full entries: Expert advisor · Trading signal.

An expert advisor is software that executes trades automatically inside a trading platform, while a trading signal is a recommendation to enter or exit a trade that a human or another system must act on. The single difference that matters is execution: an expert advisor acts, a trading signal only suggests.

Side by side

Expert advisorTrading signal
What it isA program that runs on a trading platform and places orders automatically.A message or alert that indicates a possible trade, such as a direction, entry price, and stop level.
Who actsThe software acts on the account without manual confirmation, unless the user disables automation.The trader decides whether to act; the signal itself does nothing to the account.
DeliveryInstalled and run inside the trading platform, often as a plugin or script.Delivered by email, messaging app, webhook, or platform alert, and may be read anywhere.
Field markA file or installed component with settings and a log of executed trades.A timestamped message or alert with no execution log attached.
ControlThe user sets parameters, risk limits, and can stop it at any time.The provider controls the content and timing; the user controls only whether to follow it.
Regulatory viewMay be treated as automated trading software, with rules that vary by broker, country, and regulator.May be treated as investment advice or a recommendation, with rules that vary by broker, country, and regulator.

Which word to use

Use expert advisor when you mean the automated tool that executes trades, and use trading signal when you mean the alert or recommendation that a person or another system may choose to act on.