Forex robots, also known as EA’s or Expert Advisors, are trading with algorithmic terminology based on a series of forex market signals that help to buy or sell a currency pair at a certain point in time. This system is run automatically and integrated with trading platforms provided by forex brokers. A forex robot is software that is built based on programming rules that make trades automatically decide to enter and exit the market on a trading platform that is generally used on the Metatrader 4 and Metatrader 5 platforms. This software or robot will tell us when to open a trade. We can program robots to initiate and execute trades based on the rules of the trading strategy we use. We can use this robot, whose logic is made based on trading rules, to monitor some of the markets we want, such as the GbpUsd, EurUsd, XauUsd markets and so on. This robot is tasked with alerting us if we find potential opportunities for profit.
Forex robots open profitable opportunities by tracking price movements in the market and generating trading signals so that traders can be followed up within a certain time and can sell – buy, enter – exit the market automatically. As we know, the forex market continues to change constantly and to enter the market, we need to monitor it continuously until we find a pattern or setup that is suitable and meets the trading conditions we use. Price movements in this market continue and change 24 hours a day and 7 days and traders may lose momentum to enter the market. The purpose of this robot is to serve as a reminder of trading signals and help traders to execute automatically so traders don’t have to keep – continue to monitor price movements on the monitor screen.
The robot certainly functions and is useful properly. However, because this robot is a tool that is made based on logic, of course the results of this robot depend on its use, how well the robot is used and the most important thing is the strategy that is logically applied to the robot. Just like trading manually, trading using robots also carries the same risks because robots are also made based on the algorithmic terms of the trading system used and only make it easier for traders to buy or sell on the forex market automatically but will not reduce the risk of trading on the forex market which will always be and very risky. Robots are created and coded to assist traders in operating the financial market, not to offer easy profits.
Trading automation using robots will be useful and profitable, but of course it is not cheap and easy to make. Because robots require good performance and skills. Automating a trading strategy requires in-depth knowledge of the strategy you want to automate, and it takes time to test the strategy so that the robot can work as expected and of course makes it easier for traders to make money without having to execute it manually.
In general, robots are proficient in technical analysis, which involves reading historical market statistics and price charts to predict the next possible price movement in the future. But unfortunately, when the fundamental factors are working, the robot will not be very helpful because price movements when there are dominating fundamental factors, it is not uncommon for price movements to get out of the way of technical analysis.
What are Trading Robots?
Trading Robot is a computer program created to carry out trading or trading transactions. Trading robots can be made based on certain programming languages. For example, the most popular today are the mql4 and mql5 programming languages. Because only these two types of programming languages are suitable for use on metatrader, a trading platform that is currently used by the majority of retail traders and brokers.
Trading robots are basically a trading method converted into a program. So that in a trading robot there are various orders that are used for transaction automation needs, such as determining when and where to open a position, risk limits and profit targets. So, after using a trading robot, traders no longer need to do trading manually, because it can be done independently by a robot that has been programmed in such a way.
Benefits of Trading Robots
The use of robots in trading is generally used to help traders to make transactions. But, on the other hand there are also a number of benefits that can be obtained when traders use trading robots. The benefits of using a trading robot are as follows:
1 Can completely replace the trader
2 Gives traders a lot of free time
3 Make it easier for traders to do analysis and create a trading plan
4 Lighten the psychological burden of traders
5 Helping traders to be disciplined and consistent
Disadvantages of Trading Robots
Although it has a number of benefits for traders. Trading robots basically also have their own drawbacks. The main drawback of trading robots is that they are not flexible. This means that the robot doesn’t know whether the market conditions are very good and in accordance with the trading method used or not? Therefore, the use of trading robots is usually a high risk when market conditions do not match the method programmed in the trading robot.
How to Use Trading Robots
The way to use a trading robot is to install it on the trading platform. Unfortunately, the trading robot program is only compatible with trading platforms on computers. Not compatible to install on mobile trading platforms. So, to use a trading robot, we must first have a report or computer.
Another alternative is to use a VPS or virtual private server. We can use VPS to install trading robots to the trading platform. So, VPS can be regarded as a virtual computer that can be installed trading platforms and robots in it. VPS can also make trading robots and platforms always online. So that the trading robot will work non-stop, as long as the market is still open.
