The Forex market handles around $3 trillion in daily transactions.
One would believe that the possibilities of making a large profit are rather great. However, research have revealed that only approximately 5% of traders make a considerable and regular profit. This means that inexperienced traders and gamblers will struggle to make a living in this environment. So, how do Forex robots (Expert Advisors) fit into the picture? Are these robots capable of generating the massive revenues that have been promised? First, we must consider the advantages and disadvantages of employing such an automated method in the Forex market.
- To function effectively, the robot must run 24 hours a day on a computer or a VPS (Virtual Private Server).
- The majority of software is designed to interact with brokerage firms that can provide currency pairs with tight spreads. As a result, it might not be appropriate for every Forex account on the Metatrader trading platform. This may restrict your earning potential.
- The majority of the software is designed for a single currency pair, while some can be used with multiple currencies. The reason for this is that no single mathematical formula works for every currency pair.
- Manual trading intervention may cause the robot to malfunction and result in losing deals.
- Most robots avoid trading on days when there is a lot of volatility.
- The robot does not have any non-programmable data. As a result, a trader must always consider the big picture. The Forex market may be affected by important basic facts such as economic news and the political situation.
- Newcomers may use the Forex robot incorrectly. They may believe that because it is an automated trading system, they do not need to have any prior knowledge of the Forex market.
- A Forex robot can trade for you 24 hours a day, seven days a week, without eating or sleeping.
- It allows you to spend less time staring at a computer screen and more time doing other things.
- The robot is programmed to follow a set of instructions. There is no such thing as human greed or fear.
- Most robots come with configurable and fine-tuneable parameters.
- Forex Robots can quickly and effectively perform data analysis.
- While new traders do not need in-depth expertise of the Forex market, they do require some basic knowledge.
- Most robot developers provide advice and a 60-day money-back guarantee if you are not satisfied with their software.
- The skilled advisor has a strategy and follows it through.
- A few Forex robots can simultaneously monitor many currency pairs, offering you far more trading chances than manual trading.
- Automated trading is much easier because the robot has taken over most of the manual trader’s tasks.
In conclusion, Forex robots can execute trades more accurately and work for you 24 hours a day. Even if you are not present, they can trade for you. Almost all robots allow you to conduct back testing to verify that they actually work. They help you save time so you can focus on more important things like honing your talents. However, while Forex robots might assist you in finding profitable trades, they do come with some dangers and drawbacks. The majority of these robots are focused on a single currency pair. You’ll need to buy more robots if you want to trade more currency pairings. Traders must also consider the big picture, such as fundamental data and news that may have an impact on the Forex market.