If you enthusiastically attend to the development of information technologies and artificial intelligence and realize what great prospects it opens up, you can appreciate its practical application in the form of Forex trading robots. If you haven’t yet discovered the benefits of automated trading, you’ll be pleasantly surprised at the accuracy of tasks these tireless assistants can fulfill for you.
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Understanding Automated Trading
Automation of Forex trading is similar to the introduction of machine tools in factories. At first, they performed simple actions and needed complete human control. However, subsequently, they almost completely replaced human labor, requiring only minor attention.
The same goes for automated Forex trading. The best Forex robot in the world performs many labor-intensive actions that previously required a lot of attention and time from the trader:
- Continuous monitoring and market analysis;
- Search for trading opportunities;
- Making decisions regarding the completion of deals;
- Placing and closing orders.
If you prefer to make decisions on your own, the robot can be configured so that it will only send you trading signals based on a thorough analysis of the market and perfect knowledge of the necessary indicators. All final decisions regarding the concrete deal will be made by you.
Types of Forex Trading Robots
The population of trading robots is not only very wide but also very diverse inside. And just like no two people have the same character, every Forex trading automated robot has its own features. They make it ideal for certain strategies or tasks but unsuitable for others.
Therefore, when choosing your robot, you must clearly understand why you need it or what tasks you are going to delegate to it. In general, the following types of robots or expert advisors (EAs) can be distinguished:
- Robots based on technical analysis;
- EAs using fundamental analysis;
- Mixed robots capable of both types of analysis;
- Trading robots for working with the news;
- EAs keeping an eye on notices and tips etc.
In addition, robots are divided into classes depending on what strategies they are following:
- Day and night scalpers;
- Martingale advisors;
- Robots following moving averages (MA);
- Trend Expert Advisors;
- Arbitrage Advisors, etc
Benefits of Automated Trading
Auto robot Forex trading allows you to compensate for human weaknesses, such as fatigue, inattention, slow reaction, etc. Besides that, they have numerous advantages allowing you greatly simplify your trading tasks:
Implementation of actions based on the algorithm. This allows you not to deviate from the plan and make decisions in strict accordance with the received signals rather than on the basis of intuitive assumptions.
Incredible performance. One robot can simultaneously analyze not only dozens but hundreds of charts, which improves the quality of their decisions.
The robot is impartial in relation to the results of deals. Emotions cannot confuse it, as it happens with traders when temporary losses make them refuse to continue following the chosen strategy.
Risks and Limitations of Automated Trading
What are forex robots in relation to the risks associated with their use?
The coding of robots is carried out in relation to certain market conditions, but it is impossible to take into consideration every nuance in the code. Therefore, the developers update them regularly, and you need to follow the updates so as not to lose your deposit.
The code according to which your robot is programmed must match the codes supported by the trading platform. Otherwise, the assistant, for which you had so many hopes, simply will not work.
Your computer must be turned on for your EA to work unless you are renting a VPS server. However, not everyone will be able to comply with this requirement due to safety issues.
An automatic Forex trading robot will be needed for both a beginner and a professional trader.
- For novices, it will compensate for the lack of knowledge in a particular area of trading.
- Professional traders can safely experiment with robots when applying more complex strategies.
- Moreover, you can even program your own robot if you wish. And although this is a time-consuming process, trading platforms provide this opportunity for traders.
So if you are willing to partner with artificial intelligence or other forms of robots for automated trading, you will find invaluable assistants ready to work day and night for your benefit.