FOREX TRADERS

[mackvick]

Reasons You Need to Trade with Robots

Trading foreign exchange has been traditionally seen as one of the most effective ways to make a lot of money within a short period of time. And since most people now trade via various platforms (MetaTrader 4, MT5 and cTrader to give a few examples) that are found in most brokerage websites, they employ almost all the aids and tools which are provided on those sites; the ones which help a trader to go about their job much more smoothly. A few of these tools are: indicators, analysers, charts, and last but not the least; robots. What are these ‘robots’ now, one may ask. These are software programmes which are designed in a manner to let them trade on behalf of human traders. They are programmed to only accept certain kinds of signals and trade when particular conditions are prevalent in the market.

The success rate of robots is almost 60%, owing to their propensity to trade only within the spreads and squeeze out a few pips for every single trade they execute. They do not venture too much outside of the range at any point of time, and follow only those signals, which they have been programmed to abide by. This makes robots one of the biggest choices, when it comes to profitable trading in the foreign exchange market. Although there are lots of fraudulent robot peddlers out there (which is why traders need to exercise a bit of a caution while making a purchase), the vast majority of dealers are genuine and their robots can generally be expected to put up a good show.

So what are the major benefits of buying robots (sometimes referred to as ‘expert advisors’)? Below are the points spread out in detail: (points collected from cornertrader.ch).

1. They trade about 24 hours per day; that is, the entire duration for which the forex market remains open 24 hours a day for operation. This means that the small profits they make on every trade they execute, would ultimately add up to a substantial amount.

2. As mentioned before, they only trade within the spread and hence do not undertake risks. So, there is very less chance of them running into huge losses until and unless there’s a radical spread movement owing to any significant economic or political development having taken place in the world.

3. They are not prone to human emotions; hence, they do not take any major risks and do not act out of greed. They use only those signals, which they have been programmed to use.

4. Robots, unlike human beings, do not take any time to identify trends in a market; and to analyse whether a condition is ideal for trade. Being automated systems, would only take a few seconds to process market and chart information and take the appropriate position as dictated by the signals. This means that the speed of a robot enables it to take trading positions much before the prices slide past the ‘take profit’ or ‘stop loss’ points. This is obviously hugely beneficial to a trader because it ensures profits. Also robots would be able to take positions on a trade at a point where one position would create similar other positions at the same time in the market, thus magnifying the chances for trade.

These, in short, are a few reasons why you might consider trading with robots. Happy trading!