Can You Make Money With Forex Robots?
An objective analysis of information will always be preferable over subjective and emotion-driven decisions, especially when it concerns currency trading, which promises great profits and a comfortable life to those that know what they are doing.
Forex trading robots have become the primary sources of enrichment for a lot of traders, which is why anyone wanting to make some money on the side without committing too much themselves should be looking into them.
How Do Forex Robots Work?
Here are some facts that will objectively describe the kind of work you can expect with a trade expert:
- More free time. By entrusting your account to the robot, you free up a significant amount of your precious time for other, equally important, cases! This is a significant advantage of using similar programs over other methods, as there is some freedom in shaping the daily work and leisure schedule;
- Stable income. Since the robot operates according to a clearly defined algorithm, it can avoid making mistakes that are typically caused by humans. In addition, the robot is not subject to feelings and doubts. It simply acts in accordance with the existing indicators. This ensures stability in the operations being carried out, even if losses slip;
- Reduced risks, which is achieved by gaining stability;
- Individual parameter settings. Profits on Forex are significantly more likely considering you yourself can adjust the options and setting of the automated trading robot for your own needs;
- No trading expert can carry out a fundamental analysis of the market on a daily basis, therefore, profits with Forex robots depend on whether you can take into account the changing economic factors at the time and translate that into new settings for the robot. Drastic changes in this area may contribute to the failure of the robot.
What you should pay special attention to:
Unfortunately, when you are in the process of getting acquainted with the features of a particular Forex robot, you may encounter descriptions where earnings will be treated with one hundred percent guarantees. Such promises cannot be considered objective.
Even the best traders in the world fail every now and then. Do not trust the assurances of developers that claim it is their adviser that will allow you to achieve wealth in a matter of months, if not weeks. In these matters, always remain objective in your approach.
Another myth that you should be watching out for is that good trading robots are the ones that are expensive. Contrary to this statement, there are many worthy options to choose from that are free, and you can use them whenever you please.
Are Forex Robots Legal?
Without a doubt, forex trading robots are completely legal, and anyone who says otherwise is lying. It is becoming a well-accepted aspect of trading, hence, brokers are implementing more and more support for trading robots. It should surprise no one that an automatic trading robot not only allows for work to be conducted autonomously and remotely, but it also significantly optimizes the process of trading itself. The robots operate independently, according to a predetermined algorithm. Thus, the whole trading process is automated and can be carried out even without the presence of the trader.
The main advantages of using trading robots include:
- Significant saving of time, effort and nerves of the trader. All you need to do is to set up the purchased program and you can go on about your business. While the robot is doing all the dirty work, the trader is now free and has the opportunity to work on other projects or relax and spend time with the family. Moreover, since the robot doesn’t require any maintenance, they can trade non-stop without interruption 24 hours a day;
- Protection from rushed decisions caused by emotional factors. Obviously, forex trading exposes traders to a lot of emotional stress and shock. As a result, sometimes, in a fit of excitement or panic, they can perform a series of reckless acts, which can ultimately lead to the loss of the entire deposit. The computer program, on the other hand, operates strictly according to the specified settings, and the loss of funds is possible only in scenarios with incorrectly chosen strategies or abrupt changes in market trends;
- Efficiency, speed, and accuracy of all actions performed by the robot will always prevail over humans. That is the simple reality of things. A computer program is capable of processing and analyzing a huge amount of information every second, as well as simultaneously carrying out transactions along the way. Hence, with a forex robot, you can not only earn more, but also faster;
- The ability to refine and improve software according to personal requirements. By writing additional code, you can get a number of additional functions that will greatly simplify trading and maximize efficiency.
The negative aspects of using trading robots include:
- The robot’s lack of the ability to make decisions in unusual situations. The program operates according to a predetermined algorithm, which was written for certain conditions. When the situation on the market experiences some drastic changes, the robot cannot react appropriately and change its strategy without interference from the trader. These kinds of situations can lead to traders experiencing large financial losses;
- The need for continuous monitoring of the program in order to prevent failures and financial losses caused by changes in the market;
- Long-term use of trading robots can lead to loss of trading skills of the trader. Since a market participant does not have the opportunity to train his skills, it will be difficult for him to analyze and monitor new market trends on a daily basis, and it certainly will be difficult to return to trading without a robot, should the need arise;
- The high costs of high-quality robots. Writing complex trading programs requires the involvement of highly-qualified professionals, who tend to evaluate their work as quite expensive.
Nowadays, there is a multitude of options to choose from when picking out an automated robot trader. Most of the differences arise from the robot’s intended strategies. Some of these robots types are:
- Trend-based, which work according to the direction of prices in the market;
- Scalping-based, which tend to open a large number of small transactions;
- Universal robots, which are highly modifiable and can produce results on any given strategy;
- Robots operating on the basis of neural networks. These kinds of programs have the ability to analyze previous experiences and make decisions based on them. Usually very expensive.