Trading robots are called expert advisors or EA's for short. These are software programs that will complete trades based on certain rules for entering and exiting. Prices for these trading robots range from free to hundreds of dollars or more and there are numerous styles available.
The MetaTrader solution is the most common platform for automated trading. There are hundreds of brokers that offer trading with this platform but it's important that you do your homework before initiating the trade.
You can make adjustments to suit the type of trader that you are depending on your risk level. The trading will be executed based on the parameters that you set for them in the trading programs.
You can quickly lose profits as fast as you make them so trading can be emotional. Auto trading helps take some of the emotion out of forex trading. Based on the parameters they are told, the robots are programmed to make the trades.
Nothing is perfect and trading robots do have disadvantages as well. They cannot react based on what's happening in a market or any news you might acquire. Because they are working on data based on history trading robots are not able to predict the future.
The software will be running on your computer so you need to be connected to the Internet at all times that the market is open. Using a high speed Internet connection system and not dial up can be valuable.
Your system may go down for any reason and you will not be able to alter any data such as a stop loss order to a trading robot.
Automated trading robots will be around for a long time. They offered the huge advantage of taking emotion out of the trading process. Computers can free up your time to do other things because they do the work for you.
These great results speak for themselves. Some trading programs boast earnings of 1000% per year or more. Dealer intervention and timing play a role so your results will vary. Until you are completely familiar with how the trading robot will perform under market conditions you should always be conservative with your settings.
No comments:
Post a Comment