Everyone agrees that trading forex is not that easy. It’s especially difficult when emotions and greed get in the way of thinking rationally. Many traders are already familiar with a method that facilitates trading and relieves nervous tension. How not lose your deposit and not give up your last money for the treatment of nerves when trading forex? Very simple. Meet forex Expert Advisors.
Should you try it?
There is much debate as to whether trading robots should be used at all or whether it would be more rational to make predictions on your own. It is no secret that some automatic trading systems are capable of completely wiping out the deposit. That is why the numerous statements by developers of paid robots about their hundred-percent efficiency are nothing more than advertising. However, here are some of the main advantages of automatic trading:
Speed. Trading software can keep track of dozens and even hundreds of quotes of different assets, make instantaneous complicated calculations, make a decision, and open positions right away. There is no way a human can interpret so much data so quickly. Traders who use large volumes of complex calculations in their trading system, who consign trading to software get an advantage over their colleagues who trade the old-fashioned way. Traders who don’t employ Expert Advisors have to decrease the number of traded financial instruments and abandon promising, but complicated trading systems.
Accuracy. A trading robot does not incur errors(unless, of course, an error embedded in the program code throughout its design), all input and output information can be calculated to within a few decimal places if needed. The robot will not accidentally enter an extra zero or put a comma in the wrong place when placing an order. Manual traders can be mistaken in calculations and placing orders. A well-designed trading terminal can protect against some of these errors, but there is still a chance for errors.
A trading robot is not apt to suffer from emotions. Many market participants, particularly newcomers, after being exposed to emotional impulses place orders contrary to the trading system logic, and in most cases, such orders turn out to be unprofitable. A trading robot always strictly adheres to its own logic. It does not listen to the “gurus” in the lounge who know exactly where the price is going to go, it is not scared of three losing trades in a row, it never gets in a bad mood.
The trading robot does not get exhausted, it is ready to work 24 hours a day, 365 days a year. You will be able to do whatever you want – work, train, rest while your Expert Advisor trades. If you trade manually, you can’t spend 100% of your time in front of your computer, even if the trading session at the exchange is only 8 hours. Being away from the computer, the trader can miss an important signal for entry or exit, and it can bring losses.
Scalability. If you want to add functionality to your trading system, you will only need to add code. For example, you can get nice reports and charts at any time, you can set up robot alerts by SMS, you can complicate your trading strategy endlessly. By trading manually you will have to spend more of your time if you want to boost your trading capacity, or even hire additional assistants, or refuse to expand your activities.
How it works
An automated Expert Advisor and a forex robot are the same thing. The task of an automated trading system is to make trading easier for the user. Unlike simple trading signals, a robot automatically opens and closes trades without the user’s participation. All you need for that is constant access to the Internet.
A forex trading robot cannot work without a connection to a trading terminal. 90% of all automated bots are developed for the Metatrader platform of this or that version. The algorithm is based on technical indicators or postulates of mathematical probability. Accordingly, robots never trade “blindly” – each position is opened and closed based on the prescribed algorithms.
For the development of automatic trading robots, one or another indicator or economic law of probability is taken, on the basis of which the program code for full automation is written. Robots are developed by programmers under the supervision of traders and analysts. Usually, after the release to the public, forex robots are tested by an independent team and optimized. After all, when you install the bot in the trading terminal, you will be able to select certain settings.
Novice traders need to understand that robots do not analyze the market. They use data from built-in indicators, which each user can install separately and put on the chart.
Problem of choice
To choose the trading robot, it is necessary to estimate its profitability first. It is essential to take into account that the higher the profitability of the trading expert, the higher the risks will be. There are types of Expert Advisors that can work effectively only on certain types of markets. Some are suitable for the market trends, while others are most effective on the flat market.
Traders today can choose either a paid advisor or a free one. Paid advisors have the advantage of detailed instructions and technical support from the developer’s company. Both paid and free Expert Advisors are practically identical in their effectiveness.
In order to choose an Expert Advisor, you should carefully weigh the pros and cons of its use and then decide which of the types presented today is more suitable for a particular trader. Keep in mind that trading robots are not insured against errors. Do not put all the worries about the trades completely on it.
Why choose EliteFxgo
Trading with the help of EliteFxgo you get the chance to improve your results no matter what your trading background is. It makes no difference if you are a seasoned trader or a total newbie with no knowledge about financial markets. If you already have a working strategy of your own, you will be able to make more money since it’s never enough, right? On the other hand, if you have no experience, you can start getting profits with the EliteFxgo automated software while you are learning.
A trading robot will help you trade, but it won’t do everything for you. Remember that the market is very volatile, and robots become obsolete. Carefully monitor the relevance of the advisor. And better yet, do not rely entirely on it, work with your own mind.