As we all know, the forex market is a system that allows traders to profit from the price action of securities by correctly predicting the direction of the price movement for these securities. Some have failed in this endeavor, while others have won and continue to win. For many years, many strategies and methods have been adopted to facilitate trading on Forex. Various analytical methods have been developed, such as fundamental analysis, technical analysis and sentimental analysis, to help make sufficiently close educational forecasts. Other tools, such as stop orders, have also been created for other purposes to minimize losses.
Another option for trading in the Forex market, which has become popular among traders, is the forex robot trade. In this article we will look at why forex automatic trading becomes the preferred option for traders. This article will also consider such issues as: what are forex robots, what are the advantages and disadvantages of using forex trading robots, how to use forex trading robots, etc.
What is Forex Trading Robots?
Forex trading robots are used by traders to make automatic forex trading. It used to be used by huge trading companies, but recently it is used by many forex traders, whose number continues to grow.
One can ask what is trade forex robots? Are they metal human structures that are used to trade the market? No, this is too unrealistic.
Contrary to what you think because of the word robot, it’s basically a computer program run by the forex software. The most common among the software forex is Metatrader. Most forex robots are produced exclusively for Metatrader 4/5. There are other software options, such as TradeStation, a ninja trader and many others that traders can use to make their trades. Forex robots can also be called forex or forex eas. Eas is an abbreviated form of an adviser.
Types of Forex Trading
There are three types of trading options. This classification is based on the level of robotics that a trader implements in his trade.
This type of trading option without any help from robotics. It’s old-fashioned. A forex trader does all the work himself. From the point of view of the decision on trade, it is understood to the extent that it trades. Some traders still prefer to do it old fashioned. Others prefer to mix things up. They sometimes trade manually and sometimes use robotics.
Fully automated trading
The parameter of automatic forex trading includes the use of forex trading robots. The robot was programmed to make decisions based on certain market terms of trade. When these conditions are met, the robot can place trading orders in accordance with instructions on behalf of the merchant.
As the name implies, half the manual half of the robotics. This is a combination of both forex robots and manual trading. A robot can offer trading signals to a trader when certain market conditions are met, but he will not post deals. Then the trader will check other conditions that may not correspond to the working parameters of the forex robot, for example, news, before placing the deals themselves.
What can a Forex robot do?
These robots were programmed for trading, based mainly on the technical method of analysis. For example, a trader can establish a forex robot to open trades only if there is a moving average crossover. Forex trading robots can automate almost every trading strategy that a forex trader wants to use, all you need to do is enter it. While a trader can correctly determine his strategy, it is very likely that he can be programmed into a forex robot. The reason for using the word “almost” is that there is a fundamental analysis that a robot forex could not analyze, as well as a person. A classic example is understanding the impact of market news.
24-hour market review
No one can sit all day and watch the forex market when events unfold. Again, you can skip trading opportunities when the trader is away from his screen. This is when forex robots become useful. With the help of forex robots, all traders need to do this to run it in the trading software, and the robot will monitor the market on behalf of traders all day without missing a millisecond. He can either place trades, or warn the trader about trading signals based on the input of traders.
Make quick calculations
This should not be surprising. We are all familiar with calculators. Robots are very useful for certain forex strategies, which require quick calculations. They can also perform certain transactions faster and better than people, especially in unstable market conditions.
The advantages that come with using Forex robots.
1) Automatic trading
As mentioned above, almost every strategy can be automated with forex robots. In the market there are certain periods when automatic trading is necessary. For example, during unstable market conditions, automatic trading will be much more effective than manual trading, because a forex robot can work faster and better under these conditions
As mentioned above, you can configure the robot to search for certain market conditions, while you can remain engaged in other activities. Thus, you will save your time while simultaneously performing two tasks simultaneously.
Do not miss the opportunity
It is impossible to miss trading opportunities when using forex robots if the machine has not broken down. Otherwise, as soon as you enter your input into the machine, it will ensure that you do not miss any trading opportunities with respect to the input parameters.
Sometimes it is difficult to follow our own market plan. It is difficult for us to close the auction after we made a profit based on the trading plan, because we are greedy for more profit. Instead, we wait in anticipation of greater profits, and before you know it, you completely lost or received a lower profit. Forex automated trading takes away all these possible scenarios and much more. Using forex traders, we execute the plan in the same way as entered into the machine.
Most often, certain trading strategies require complex calculations, indicators and accuracy. Forex robots can quickly perform complex calculations in the shortest possible time without errors, and also make trade decisions faster than any person. During the time when a person will need to manually make certain calculations regarding the trading strategy, the price action could be changed.
This is one of the most important and useful functions of forex robots. Backtesting means simply using past data to determine the results of a trading strategy. This can be done either manually or automatically. But it is very effective to do this with forex robots, because you can test the trading strategy for many years of historical data in minutes.
There are many websites and companies selling already made forex robots on the Internet. These companies mainly advertise forex robots in such a way that they seem to be an ideal system with a history of how profitable it has been for many years.
This will convince you that you will receive it, because, in your opinion, forex robots guarantee a one hundred percent chance of success in the foreign exchange market. I would have thought again if I was you. Let me explain.
The Risky Strategy
It is absolutely essential that traders become cautious when buying ready-made robots, as many of these companies do not disclose the exact risks associated with their customers. Many people have fallen victim to lies, some of these companies are preaching about their forex robots. People hope for quick money without any effort, so, in the end, they sacrifice victims and ultimately lose their trading account.
How did this happen? A typical example of this is the fact that some forex trading robots do not place a stop-loss order on their trades. They just close the auction after making a profit. This makes trading with these robots risky. Because if the market suddenly moves in the opposite direction, as expected, the trader will lose huge amounts of money. Ego has a high priority that traders learn about a particular forex robot before making a purchase.
How to be safe
The only way to prove that a forex robot has the potential to be profitable is that it will be repeatedly checked on demo accounts, historical data and real accounts. It is also important to find a forex robot that is suitable for your level of risk tolerance.
Traders also need to know that the market is constantly changing. Although past events are likely to give some level of understanding of the future, this is not a 100% guarantee.
Are Forex robots profitable?
The question you should ask yourself is that if forex robots were so successful, why would inventors have to sell them first? Many of the forex robots sold there are not profitable. This is due to the fact that creating a profitable forex robot is not easy. Creators use all sorts of means to induce you to buy these forex robots. People then buy it only in order to understand what it does not fulfill, as originally promised and intended, and by that time they would have lost huge sums on their account without any means for their return.
Suffice it to say that profitable forex robots exist, but they are not easy to find.
Signs of a really profitable forex robot
Level of win / loss
There is no such thing as an ideal forex robot. The measure of a profitable robot is the number of victories over losses.
A profitable forex robot must have bad stop-loss. The forex robot, which wins consistently due to a small profit target and a huge stop loss, can not be classified as a really profitable forex trader.
In order for a robot-forex to be considered really profitable, it must possess adaptive market opportunities. It can either automatically adapt, or the trader can make some adjustments that will allow him to adapt to changing market conditions.
Many forex robots do not have adaptive functions. This is due to the fact that programming a forex robot is not easy to have adaptive capabilities. Ego they are beneficial only for a certain period of time.
Use free forex robots
As the name implies, they are free. You do not need to lose the ego in order to have access to it. They offer you the opportunity to try yourself in different strategies. Having tried these forex robots, you may have a good idea of which strategies work best and which ones do not. It also develops and improves your use of the Forex robot
How to use Forex robots on Meta Trader 4
Despite the fact that forex robots can seem complicated and complex, it’s relatively easy to use run on Meta Trader 4.
What you need to do:
- Open an account with a forex broker, which allows automatic forex trading.
- Download Meta Trader 4.
- You will need an Internet connection
- Open Meta Trader 4
- In the upper left corner of the screen, click File> Open Data Folder
How to launch forex robots on MetaTrader 4
- Lick MQK $ in the folder> Experts. Save the forex robot in this place.
- Now download and save the forex robot
Click on the view in the upper left corner> Navigator. The window was waiting for the puppy. Find the forex robot that you downloaded in this window. He will be in the expert section of expert consultants. If the forex robot is not found, close the Meta Trader window and restart it again, just closing the window for Meta Trader and running it again.
Navigator window Meta Trader 4
After you find an expert, you enable automatic trading by simply pressing the automatic trading button. The alternative is Ctrl + E.
Enable automatic trading of MT4
- Dragging the robot into the diagram, it starts to work.
- What happens when the computer turns off?
- Even though your computer is turned off, the forex robot will continue to work until you remove it from the chart.
- It can also be deleted if you program it to automatically delete after a certain period of time or when the set trading conditions are met.
The forex robot works only as long as you open Meta trader 4. If you close Meta Trader 4 or shut down your computer, it will also automatically stop working. If you need a forex trader to work all day, you need to leave your computer or an alternative – use the forex VPS service, which allows you to run the forex robot on a private server.
Forex traders who intend to start using forex trading robots should be very careful, otherwise they will be deceived. There are many hungry people who will take advantage of your ignorance and tell you about buying forex robots that will do you more harm than good. The best way to stay away from their crossfire is to stay informed and know what you want to buy before you make a purchase.