forex robot

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forex robot

Do forex robots work? - FortuneHerald

Posted: 26 Mar 2019 06:07 AM PDT

Successful trades require a high activity of the trader. Automated trading on Forex helps to effectively optimise trading. Automated trading systems allow financial market participants to analyse the market and make the right decisions quickly. Some of them trade automatically without the trader's intervention.

The term of automated trading unites such concepts as trading robots, EAs or advisers. Let's consider in more detail.

What are forex robots

Forex robot is a special program written for trading platforms such as MetaTrader 4. They are subject to a clear plan and do not fall under the influence of the psychological factor. Forex robots trade around the clock, not feeling neither fatigue nor emotions.

Forex robots are written in the programming language MetaQuotes Language Version 4, or MQL4. A user familiar with this language may write his own EA. Before buying or creating a robot yourself, it is important to study the features of the software, test it, and only then start trading on real accounts.  Also it's highly important to choose a reliable broker. For instance, Forex broker JustForex, Exness, and XM.

Any adviser is based either on technical indicators or on the set algorithms. When creating a robot, a programmer takes one or another technical indicator as a basis and automates its work in such a way that an adviser can give the signals to open positions.

There are several types of advisers:

Automated robot

The work of this type of robots is fully automated, that is, all functions and operations are performed without the trader's participation. They not only find signals but also open positions themselves.

Automated robots analyse market, price charts, make calculations, as well as open a position using stop losses and take profits. If necessary, they close the position automatically.

Semi-automated robot

Semi-automated robots determine the signals and inform the trader when and how to open a deal. The trader makes a final decision according to risk management rules.

Pros and cons of Forex robots

Forex robots have both advantages and disadvantages. Among the advantages are:

  • Forex robots allow a trader to save time. There is no need to monitor the price chart constantly, the robot will take the necessary actions, the trader just needs to control the situation several times a day.
  • The trader can combine manual and automated trading, which allows monitoring the adviser's actions and, if necessary, to make adjustments.
  • The Forex robot works according to a predetermined algorithm, therefore the influence of the psychological factor is excluded.
  • The trading robot performs the most complicated calculations, and immediately respond to the market situation. Having identified a high-quality trading signal, the robot will open a deal in a split second, and will significantly increase the chances of making more profit.

However, automated trading in the Forex market has quite large risks. You should understand that an adviser is a program and it is not responsible for the safety of capital. Trading with the help of forex advisers looks simple and profitable but is fraught with the following disadvantages:

  • The adviser can't adapt to market conditions. Market behaviour is always changing, economic and political news is published. Macroeconomic events influence price movements. The adviser opens/closes trades according to a certain algorithm and does not take into account economic factors.
  • Robots may become obsolete. Carefully monitor the relevance of the work of the adviser.
  • Software errors may occur. Errors in the system can lead to deposit loss.

Not all brokers allow automated trading, so when choosing a broker, clear up this point. There are no restrictions on using expert advisers on JustForex trading accounts.

Automated trading systems provide traders with new trading opportunities. Before start using the robot in real trading, it should be tested. You can use a demo account or a special tester in order to identify shortcomings in the work of the program or assure yourself of its effectiveness without additional financial risks.

Pros And Cons of Using Forex Robots In Trading Online - I4U News

Posted: 08 Jan 2019 12:00 AM PST

Forex trading is extremely versatile due to a variety of reasons such as the use of different Forex systems, forex strategies and trading styles. There are many kinds of traders in the Forex market each with their own unique way of working. Some may choose to trade manually while others may prefer automated trading. In this article, we discuss everything you need to know about automated trading (Forex robots) as well as the pros and cons of using Forex robots in trading online.

What Is a Forex Robot?

A forex trading robot is an automated computer-based program or software that generates a set of adjustable Forex trading rules and parameters that help to determine whether to buy or sell a particular currency pair at any given time. A Forex trading robot is available to traders 24/7 and can easily be purchased online. The emotional element of manual trading can be an impediment in the Forex market hence Forex robots are designed to minimize this. While these trading systems can easily be bought on the internet, it is important to be careful when purchasing them this way to avoid scams and poorly-designed robots. Most automated Forex trading robots take the form of Expert Advisers also known as EAs operating within the MetaTrader online Forex trading platform to perform transactions.

How Does Forex Trading Robot Work?

The main goal of forex trading robots is to facilitate online trading in the Forex market without the traders intervention. The Forex robot basically initiates and liquidates transactions without any kind of manual intervention from the trader. These robots are necessary especially when it comes to completing transactions that are based on rules and instructions in a pre-determined trading plan, identifying optimum entry and exit points for trades as well as calculating the ideal position sizes. The buy and sell parameters or signals are generated by the robot depending on the past and present exchange rate and other market conditions. The good thing with Forex robots is that they have adjustable settings which helps to meet each individual trader's risk and capital requirements.

Pros of Using Forex Robots In Trading Online

One of the most important benefits of using a Forex robot is that it removes the emotional aspect out of trading by automatically executing the trade based on pre-defined user settings. The robot will complete a trading transaction regardless of any minor bias or deviation that may have confused even an expert Forex trader. The Forex trading robot further helps the trader not to panic when making important trading decisions. For example, it will not cancel a transaction out of fear that the trading session either opened a little lower or higher than usual. The automated software helps the trader to objectively execute trading strategies without emotions since all decisions are based on pre-defined rules and parameters.

The Forex robot is fully functional 24/7 which means that it does not go to sleep but keeps on working both day and night hence you do not have to keep a close eye on the market because the robot does it for you. The robot is also able to back-test a variety of ideas in just a few minutes on multiple currencies which makes it easy for the trader to use hedging strategies. While the human brain is unique in its own way, it may not be able to multitask many different activities. However, Forex robots can multitask these activities accurately and with ease which also reduces common human errors in trading.

Cons of Using Forex Robots In Trading Online

Forex trading robots heavily rely on 24 hours internet connection in order to automatically execute trade transactions. This means that the server hosting or VPS the forex robot must be reliable and able to provide maximum uptime. Even the slightest glitch or delay in the server will result in wrong trade transactions. Another limitation is that Forex trading robots work well during trending market hence they may not function effectively in unstable markets. There are also many poorly designed Forex rots available on the market today while others are merely scams designed to rip off online Forex traders.

In order to exploit the many benefits of forex robots, it is important to do some online research to identify the most reliable robots as well as find out how successful other traders have been using different types of software. Traders may also opt for a free trial subscription to test the software before committing any funds.

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