A Forex robot refers to an automated system of trading forex 24/7 using complex algorithms in a computer. Forex robots are designed to help traders with technical elements and repetitive forex trading analysis.
Moreover, these robots can do many great things, from giving you signals on placing a trade to automatically managing the trade while you sleep. But the pre-wired thinking in these robots does not sit well with ever-fluctuating market situations.
Types Of Forex Robots
There are two types of automated trading robots;
Fully Automated System
A fully automated forex robot examines the market for the available trading opportunities and then trades on behalf of its user-based programmed rules. When the trade has been placed, it automatically determines trailing stops and profit targets.
An automated forex robot is the best option if you do not have much time for forex trading. However, it is impossible if you think that you will set it up, put on your blanket, and shovel dollar bills as you sleep. It will need monitoring to solve any issues.
However, even the best automatic systems promise a 100% success rate and cannot outplay the human qualities that make a good trader.
This system is preferably used by a trader who has comparatively more time to spend on forex but needs automated activity to a certain degree. Traders have more control over such systems as they can apply their human skills and mindful approaches while making a trade.
A semi-automated system also uses a computer to examine trading opportunities and analyze markets based on a pre-installed trading policy. Then it sends its trader signals of stop-loss orders and profit targets.
This system saves considerable time for its user by doing the most preparatory work as it is faster than humans in analyzing the markets.
Pros and cons
- 24/7 trade
Humans cannot sit and trade all day. They need to eat, drink and sleep. At the same time, Forex robots can work all day continuously with no need for breaks so that the user must not miss any opportunity.
- Not affected by Human Emotions.
While trading, humans can be overwhelmed by human emotions such as greed, happiness, or fear. They might do something wrong. In contrast, robots work on a set of specific programs that provide better trading.
- Faster and Effective Work
A robot analyzes the markets and finds good opportunities much faster than humans can do. Robots are based on predetermined parameters and carry out trades according to their rules, all in seconds. A human requires a much longer time and may miss opportunities.
- Considerably Strong Internet Connection Required
Forex robots need a much more robust internet connection to work. The server can cause glitches and make the robot make incorrect trades in case of weak internet.
- Not Good as Human Mind and Imagination
A human mind can match the intricacies of the market and think accordingly. In contrast, robots have pre-programmed systems that cannot match quick ups and downs in the market.
The forex market is never the same. Instead, it keeps evolving, and so do the traders changing their approaches to become successful. You must complete your hd markets registration to get crucial assistance on your successful trading path. Consequently, you must think, why don’t robot makers get rich themselves instead of selling them. So, you must consider all the aspects before reaching out to robots for your trading.