Can You Trust Automated Forex Trading Robots?

By Steven Hatzakis Wednesday, January 3, 2018

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What are automated Forex trading robots? Do they bring any advantages? Many people claim they’re just a scam. Read on to find out all the answers!

Introduction

Using automated Forex trading robots is an interesting way to earn profits, though traders can rely on the traditional method. But robots are invented for purposes. Just imagine you consistently look at the computer monitor to keep track on charts, follow the news and carefully conduct extensive fundamental analysis day by day. This can easily lead to burnout.
Wonder if you should trust automatic trading technologies? Should you award your control to automatic robots? Or, should you use the old-fashioned yet reliable way to trade? Let this post helps you answer those questions!

What Is a Forex Robot?

Also known as Expert Advisor (EA), a Forex robot is a piece of software specifically created to conduct virtual currency trading in the FX market automatically. This kind of robot had become popular since 2007.

How Does It Work?

  • * Find an ideal currency pair and time-frame to maximize the profits
  • * Capable of scan plenty of charts and keep track on their movements
  • * Based on parameters to make trade decisions
  • * Generate signals to decide trading or not
  • * Offer solutions to search for profitable trades in the unpredictable market
  • * Follow the best trend and eliminate possibility of suffering losses
However, these are the descriptions that you often see on the websites where robots are on sale. The truth behind is not exactly the same!

What Can It Do?

  • * Entry and exit trades
  • * Control opened positions
  • * Create signals for traders
  • * Copy trades to other platforms
  • * Trade automatically the clock round

Benefits of Using Automated Forex Trading Robots

Ability to Trade Incessantly

For manual trading, traders conventionally establish their trading rules and follow those rules whenever they want to get into or exit position. For all day long, they have to stick themselves to the computer screen and wait until they find an appropriate time to do the trading activity. This is too strenuous and complicated process.

By using robots, they no more need to care about those complex rules or strategies. They’re also not compelled to wait in front of the computer all day long to manage their trading activities manually. Since robots can be used 24 hours per day to increase your profits.

Reduces Trading Errors

Humans can miscalculate or commit blunders. The fact that the computing devices are totally different. So are robots. It defaults to algorithms that can run a complex series of calculations in seconds with no bugs. Also, robots are inbuilt software to enforce the traders’ rules that have been laid down in advance, which limits the number of errors.

Removes Emotions from Trading

A big problem usually lead traders to failure is gluing their emotions to trading. Fortunately, a robot is not influenced by any emotions, so it is completely independent on Forex trading. Also note that an EA is always under control of your predefined rules. Is it a good way to get the returns, right?

Are Robots Really Effective?

Here are some facts about the robot. What effect does a robot have in reality?

  • * The federal government thinks that they are almost scams.
  • * It will be very difficult for you to find information about automatic Forex robots on famous news source like Wall Street Journal, etc.
  • * Online robot merchants who sell and promote this product can also launch bad rumors that can affect their competitors’.
  • * A large number of investors lose their money because of using robots.
  • * However, most of these traders do not have the ability to make a profit on their own. That’s why they have to use Forex robots.
  • * One of the most prominent features of the robots is scanning millions of charts in seconds, but 90% of the information is not entirely accurate.

Can You Trust Automated Forex Trading Robots?

The answer is not the same amongst traders!
If you are a trader who just doesn’t have time to daily and constantly keep track on an ever-changing market, especially the one that works 24 hours a day and 6 days a week like Forex, using a robot may be the right choice for you.

Otherwise, if you have enough time to control all of your trading activities and make all of your own decisions, you can forget the robot and continue trying your hand at trading yourself.

My Final Thoughts

For me, the answer is NO ROBOT. Forex trading is the combination of skills and emotional management. It is an art and cannot be done by an automatic software, not mention to the market that changing all the time.

So, I’m still sticking to the thought that robot is absolutely not a solid replacement for the human brain, especially one that requires both knowledge and skill to succeed.

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