Forex trading robots what is it? Which trading robot to choose?

Posted by: Ganesa

Trading robot

Modern traders are increasingly choosing trading robots. Newbies also do not neglect their help. This is due to the fact that they do not have much experience in conducting trading activities, and they are ready to shift decision-making to the so-called advisers, which are electronic trading algorithms.

One of the advantages of using it is that it does not interfere with making decisions. Trading is a complex activity in which the psychology of a trader greatly influences the decisions he makes. With the help of trading robots, the emotional impact on the conduct of the transaction is excluded.

Forex robots

To make money on forex often used trading robots. They are automated trading systems. They are designed to manage the financial flows of their owners. Trading robots or advisors are widely used among newcomers to the foreign exchange market. They have a high level of efficiency if used to conduct transactions and generate income. A trader with the help of such systems is able to get rid of those mistakes that are often made during the opening of positions.

Trading robots are specialized programs used by traders. They work on the basis of certain transaction management algorithms.

In the Forex market today a large number of tools and strategies are used, including trading robots. In simple terms, they are a kind of Trading Strategywritten using a programming language.

What are trading robots for?

Automated trading has a lot of advantages. She is deprived of what every person has - emotions. It should be understood that a person always remains a person. He tends to make mistakes. And in trading they happen quite often, especially for beginners who do not yet have the skills to control their psychological standing during trading.

Forex trading robots

In many respects, it is because of the psychological aspect that so-called electronic advisors have become very popular in trading activities. They are used to conduct market analysis and identify trends without the emotional load.

How does a trading expert

Many traders during the start of trading on Forex are faced with a large number of concepts, including swap and others. Among the incomprehensible terms for many are trading robots. Their definition was given above, and now let's talk about what they are intended for.

Stock robots today are widely used. They are used by traders for the following:

Programming of robots is carried out according to a certain system, where it is given a specific set of conditions under which they must perform certain actions. For market analysis, the program already has forex market analysis methods laid down in advance. Trading robots can give the order to the trader to open a transaction, if all the conditions for this are available. If their algorithm has a corresponding algorithm, they can fully accompany the transaction (what is a spread?).

Types of trading robots

Forex trading strategies can be very different. Among them is the use of trading robots. To date, there is no specific classification of trade advisors by type. Today you can select only the following groups of automated experts:

  • automatic and semi-automatic

Automated trading experts are designed to conduct fully automated trading without the direct participation of the trader. It only needs to run and specify the period of work.

Semi-automatic robots do not fully trade activities. Entry and exit points are set for them.

  • indicatorless and indicator

Indicator possesses an algorithm for conducting technical analysis of the market. As a result, advisors receive signals to enter the market. Indicatorless robots use graphic shapes to start trading.

There are also separate groups of the following types of advisers:

  • Scalping, which are used to trade in insufficient time
  • Trend traded using trend line
  • Grid, help open orders in different directions
  • Based on neural networks, help predict the movement of a trading instrument based on its price indicators in the past

MT4 and MT5

Trading robots for trading on the Forex market can be created directly in the MT4 and MT5 trading terminals. They have for this special language editor for programming MQL. In addition, in each of the above mentioned trading terminals there are several options of advisers that are installed in advance. They already have mortgaged source code. It is possible to take it as a basis for creating your own trading system.

In order to download the robot from the MT4 library for free, open the terminal and in the basement itself, press the "Library" button. The default will be immediately displayed: Expert Advisors, Indicators and Scripts. In this article we are talking about advisors, then turn off everything and see only the list of advisers that have already been added to the library.

Library Metatrader

There is also a convenient sorting in the library by name, description, rating and date of publication of the file. Choose the advisor you need, but first read about it on the site, to do this, click on "View" and a page with a full description and feedback on this robot will open. When you have already selected what you were looking for, you simply click "Download".

Install the robot

The advisor will offer you to establish yourself, add to the chart and conduct automatic trading. It all depends on your choice.

Pros and cons of trading robots

Automated trading in the Forex market, like any other type of strategy, has its positive and negative sides. Among the advantages of using automated advisors for conducting transactions are:

  1. Reducing the psychological burden on the trader. Some trading decisions due to a person’s psychological factor may be wrong. When a deal and all decisions on it are made with no influence of emotions, the chances of success are much higher. As a result, the number of errors tends to almost zero.
  2. No need to learn the theoretical foundations of trading activities. It becomes unnecessary to study the features of the technical fundamental analysis.
  3. The appearance of the trader more free time. Even in the absence of his intervention, trading robots are able to conduct a successful and profitable transaction very effectively.

Automated trading activities with the help of expert robots have their own negative qualities. The first thing you should pay attention to is that trading robots are created by humans. Based on this, we can conclude that any such adviser is not immune from the presence of an erroneous perception of the market.

Forex trading experts lack intelligence. For this reason, they may make mistakes inherent in their algorithm for fundamental analysis. If the market situation changes dramatically, the advisor will not be able to make a decision without making a mistake. The last drawback of using trading robots is that the market is subject to change, which requires optimization of the existing version of the advisor.

Choosing a trading robot

To select a trading robot, you should first evaluate its profitability. It is necessary to take into account that the higher the profitability of a trade expert, the higher the risks will be. There are some types of advisors that can work effectively only on certain types of markets. Some are suitable for market trends, others are most effective on flat.

Choosing a trading robot

Today, traders can choose either a paid advisor or a free one. The advantage of paid advisers is that they are provided with detailed instructions, as well as technical support from the developer’s company. In terms of their efficiency, both free and paid trading experts are almost identical.

One of the strategies of trading in the Forex market is the use of trading robots, which every year become more and more popular. In order to choose an adviser, you should carefully weigh all the pros and cons of using it, and then determine which of its types presented today is more suitable for a particular trader. It should be remembered that trading robots are not immune from errors. It is not necessary to shift to him completely all the concerns for the conduct of transactions.

Author Ganesa K.
A professional investor with 5 years of experience with various financial instruments, maintains his blog and advises depositors. Own effective methods and information support for investments.
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