Hey, have you ever been asked by a fellow trader “Dude! What’s your point of view regarding Forex robots, do they really work?”
How do I know?
Trust me! It’s not a new thing, man! People don’t trust anything which they don’t understand. it’s encoded in their DNA from the beginning of the time.
Trader always wants to make a profit from trading without ZERO hassle.
Hilarious right! But that’s the truth!
And as per the following question regarding Forex robots, then I’ll say that everyone (mostly fellow traders) confronts this question sooner or later. Not only that from my perspective, but this has also been referred to as a trendy question on numerous social media and Q&A sites especially “quora”.
But wait, it gets even interesting.
Several newbies at Forex or other online trading markets, who dream of making actual money without undergoing any particular effort are really buying this stuff (EA’s). Some brokerages did really well by providing standard Forex EA as FP Markets do now. And you wanna know how much money they are making?
Well, sorry to disappoint you all but they aren’t making any money rather for sure they are wasting the rest that they got.
The possible cause might be their lack of knowledge. As most of them are unaware of the basics and fundamentals of the Foreign exchange market as a result, they are unaware of the effective trading robots out there ( I mean most of them). Generally, trading robots are offered from well-known forex brokers and some companies are offered directly.
According to direct FX Robots sellar, they are buying services from random people by seeing the fraud and making up results due to insufficient knowledge.
But that doesn’t mean that Forex robots or EA’s are ineffective. If you use the proper robots by researching their background kinds of stuff then you’ll surely be getting the results. And that’s what the PROs do.
So, if you are a newbie or you don’t have enough knowledge regarding the trading robots then buckle up as I’m about to highlight a few significant facts regarding the Forex robots.
Let’s rock and roll then.
Forex Trading Robots: A Brief Background Overview
In simple words, Forex EA’s or automated trading contains a revolutionary tech-based presentation or software that is undoubtedly capable of producing trading signals with the help of a very advanced and intelligent analytical algorithm, Bearing in mind the ABSOLUTE rules of trading indicators.
Cool right? I know, after all, we live in a technological era!
Though a few amounts of trading software don’t always present the likely signals due to multiple technical errors, on the other hand, there are some actual productive trading robots out there. Which I’ll highlight at the end of this article.
Moving on, Often using Forex trading robots might sound quite fascinating. Because robots or particular automated programs doing all the work for you is bizarre. That means all you gotta do is accumulate the profits of your trades and enjoy your trading life.
And you be like, ” Oh god! I love my life”!
But my friend, sorry to break the ice, that’s not the way automated trading works man! The whole trading procedure not only requires but also has to be done under human supervision otherwise you’ll see the unexpected outcomes.
I mean, frankly speaking, you should know this otherwise you are completely new to the trading environment. No worries! You won’t go empty-handed. As I’m gonna explain to you how the whole procedure works and obviously in easy words.
How Forex Robots Really Work?
There is numerous trading software out there and the MT4 works as the parental stage for all expert advisors or trading software.
Trading software is specialized and built to perform. As a result, it is capable of using various trading indicators and also customized codes in a very short period of time. Not only that, if you give full accessibility to it then it’ll also act upon the results all by itself.
Yes, you read that right!
And just so you know that it’s been built using the same code metrics as the all-time BEST trading platform MT4 and which is the “MetaQuotes language v4.”
So, you know the score!
Reputation and top-notch trading robots can effectively scan infinite numbers of plentiful timeframes and trading charts. With the help of the trading indicators which they use, they discover possible trades.
And at that very moment, when it finds multiple trade choices, the software advises them to the trader. And like I’ve mentioned earlier, if the robots get full control over the trade they will act upon the possible trade choices which they have found earlier.
But it has some drawbacks too. Because handing over full control to a trading robot is not a sensible move.
And, Don’t even try to deny it!
The Limitations of Automated Trading
let’s try to be honest here, Every single thing which exists in this universe has its own limitations. And the trading software is no exception to this aspect. From my personal experience and a DEEP background check, I’ve come to the conclusion that this process works effectively within a particular range.
Again, if a trend is present inside the particular range then it may work as a plus point for the trader. So, if the odds work in the favour, then Forex robots can prove to be quite successful. Also, you should always remember that rough markets and cynical trends are the worst enemies of trading software. It can cause you some serious losses.
Trust me, I mean it! I’ve been there.
Benefits And Drawbacks of Trading Robots
Not everything is filled with advantages and when it comes to relying on a robot for trading purposes then it is quite obvious that there will be certain benefits and drawbacks. Let’s have a detailed look at them.
First of all, let’s focus on the best-case scenario that can happen if you are trading robots.
# Trading using the software can BOOST your trading experience by reducing the waste of time.
# If you are facing trouble controlling your emotions, then robots can prove to be a great alternative for you.
# If you can’t help the habit of over trading then Forex EA’s are also suggested for you.
Note: While using trading robots we often neglect the most important fact and which is that software can’t generate effective trading strategies by studying the market. This part of the process can not be done using automation hence you’ll have to do this on your own.
Moving on, there are also some downsizes to software trading. Such as :
# If the trading strategy is not backtested enough and also not quite effective then trading software won’t be able to help you at all.
# Facing several technological errors are quite obvious when you will use trading robots. So, you’ve to get used to it.
But if we look at the bright side then these problems are nothing compared to the advantages that the trading software provides.
Think about this for a moment!
Moving on, there’s a lot of traders who don’t have any ideas on how to choose an effective trading EA. Specifically what qualities should they look for in trading software?
Well, there are a few things to consider before choosing a trading robot.
Here are the deets…
# Always check out the low drawdown rates.
# Go for the most used robots because they are HUGELY tested and regularly go through updating processes.
# Don’t trust any unauthorized sites or their reviews regarding any sort of product.
# Make sure you test the EA on a demo trading first.
# Last but not least, Robots are automated but they require a human to supervise them.
So, that’s pretty much it. These are the things that you should be looking out if you wished to grow as an automated trader.
Wait a sec, Am I forgetting something?
Right, I’ve mentioned earlier that I’ll share my top picks of trading robots with you guys and trust me, I will. So, my top picks as a trading EA’s are listed below-
# For all market place: MetaTrader 4
# For Option only: eOption
# For Stock: Interactive Brokers
# For Foreign exchange: MetaTrader 4
Note: I did personally use them while following all the rules of automated trading and I’ve got positive results. But however if you have encountered any sorts of troublesome issues using them then feel free to tell me, I’ll try to help you out.
Alright then, I’m signing off, and don’t forget to stay safe and cautious against the new sign of COVID-19.