Robot Trading In Forex

Robot Trading In Forex
January 14 15:36 2019 Print This Article

Forex trading is considered to be highly versatile due to the many forex strategies, forex systems and the trading styles involved. Forex is a global market, and its participants are made of both the experienced and the inexperienced. Others traders manually, while others trade automatically with the help of trading robots.

What is a trading robot?

This is a computer program based on a number of forex trading signals. These signals define whether the sell or buy a certain currency pair at a particular time. Trading robots can easily be accessed over the internet as they are always available 24/7.

How robots trade

Traders who buy robots are mainly the ones who don’t have enough personal time to get onto the internet and do the trading by them. To them, robots are reliable options which can use to know the right timing of maximizing profits; others use them to get the right trading currency pairs.

Robots are made with important parameters needed in decision making in the forex market. Some can scan charts, while others can decide not to trade when the market is not favorable. It’s however worth noting that robots work only within a specific range. Such specifications are normally given out when buying out.

The effectiveness of robot trading

Although the forex robots promise a highly beneficial trade, not all of them achieve this. Also, some federal governments and authorities consider the trading as a little scam. Similarly, most journals and websites do not post any articles on them since they don’t support them,

You can only know how effective the robot trading by checking in the online reviews. Although they can scan large information as well as millions of charts within a few seconds, 90% of the results turn out to be incorrect. This is however because after all, the forex roots are just like any other robots.

Nevertheless, they can do multiple tasks within a very short period. The main problem with their work is that they don’t have any creative thinking to work beyond what they have been programmed to do.  The robot trading performance is therefore based on the past programming settings.

For this reason, the traders who intend to use robots to perform their work should not wholly depend on them. They should carry out adequate research through the user’s forex trading account Singapore before they administer the tasks. They should also have an overview or clue of the type of results they expect so that they can be well positioned to judge whether the results are correct or wrong.

Pros and cons of robot trading

Pros

  • Trading robots work for 24 hours per day with sleep or food. They also don’t get tired.
  • They can free up your time to do other activities other than been glued on your screen through the day
  • They operate within the set rules without ego, bias, fear or greed
  • Most of them are developed with reliable traders which can be optimized and back tested
  • They identify and react to the market opportunities faster than humans
  • Suitable for the young investors who have not yet mastered the trading basics
  • They monitor very many currency pairs at ago. This gives the trader the opportunity to have more trades.
  • They make life easy and simple

Cons

  • You must run the trading robot in a decent computer with a reliable internet for them to work effectively.
  • It is a sad fact that almost 90% of them end up losing or failing.
  • The robots are not the same. Your trading robot will therefore not work well for you if it was poorly developed
  • They don’t read the fundamental data such as political and economic events

A trading robot will not make you rich if you have poor trading strategies. If you get one, test it on your demo trading account to gauge your experience with it.

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Daniel Mike
Daniel Mike

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