Successful work on the creation of AI has made it possible to significantly accelerate automation in Forex trading. The question of whether trading robots and advisers are needed is rather rhetorical. The modern economy includes both huge enterprises and small craft workshops. If you want to scale your profits, save time, and minimize errors, trading robots and expert advisors will give you a positive result as quickly as possible and take trading to a new level.
And yet, their use should be approached responsibly. It is better to know the weaknesses of robots to avoid mistakes in their application. Read the article to find out how trading robots and Forex EA can help you, and what questions you will have to figure out on your own.
What Are Forex Trading Robots and Expert Advisors?
Among the auxiliary tools that the software market offers for traders, trading robots and expert advisors are especially widespread. These are special programs that perform the established algorithms of actions when placing orders on Forex. The trader has a choice regarding how to use algorithmic trading:
- One can minimally interfere with their settings, trusting the developers and experience of using trading robots by other traders.
- Alternatively, a trader can fully customize the robot to suit their unique trading strategy.
The same goes for the time of using automated assistants: you can turn them on for half an hour and more, or you can leave them working all day and all night.
The Pros & Cons of Using Forex Trading Robots and Expert Advisors
What functions do trading robots and advisors successfully perform today, and what benefits can they provide to a trader? First of all, they have perfect knowledge of technical analysis:
- What is position trading in Forex?
- How to discern the most effective patterns?
- When it is better to place and close orders, and much more.
Therefore, they significantly save the trader’s time. By programming them to open and close an order in accordance with a certain signal, you can not worry about the possibility of errors and can easily do any other business.
If you are into scalping, trading robots are indispensable for achieving success. They work at such a high speed that they can open an arbitrarily large number of transactions for you in a second. The reaction of robots is much faster than that of a person. They need less time to make a decision, and this decision will be unambiguous and will not contain errors.
That is why the efficiency of trading robots and expert advisors presented on the ForexStore platform often reaches 80-90%.
At the same time, there are certain issues that the trader will have to manage:
- Although trading robots can work 24/7, they cannot be completely left out of control. They are programmed to execute a given algorithm, and if you made a mistake when setting them up, they will properly execute this erroneous algorithm, leading you to losses.
- The same applies to changes in the market situation. So far, a person is better at capturing fuzzy trends that have not yet materialized into indicators on charts. Therefore, if fundamental analysis shows you that the market situation will change soon, the robot needs to be reconfigured.
The reason is that while technical analysis algorithms are easy to program for execution, fundamental analysis is too vague to be part of the implemented algorithm. In fundamental analysis, broad knowledge in the field of politics, economics, and geopolitics is very significant, which is not easy to condense to the level of algorithmic trading. Therefore, even when working with the most advanced Forex EAs, you will have to master this part of market analysis.
Types of Forex Trading Robots and Expert Advisors
When choosing the best expert advisor for Forex, you should take into account that many types of such software tools have already been released today. Therefore, you need to pick them in accordance with your trading strategy. The market has made sure that every trader has something to rely on in their work. Here are just a few of the most common Forex EAs released to date:
- The Hedge Expert Advisor
- Martingale Expert Advisor
- Expert Advisor Scalper and other Short-term Expert Advisors
- The Breakout Expert Advisor
- Multicurrency Expert Advisors
- The News Expert Advisor, and many more
How to Choose a Forex Trading Robot or Expert Advisors
How to understand all this variety of offers and choose exactly the option that suits you the most? Here are some tips to help you choose the most effective Forex EA:
- It is better to test advisors on free versions but work with full-featured ones. Providers offer both paid and free versions of EAs. It makes no sense to buy it until you are convinced of its effectiveness in a test mode. But free versions will not allow you to use it as efficiently as possible, since they offer reduced functionality.
- Testing of EA should show high efficiency and give tangible profits that are smoothly increasing.
- Check the work of the trading robot and the adviser expert at different times of the day. Since the peaks of Forex trading activity occur several times a day, it should show its steady work both during peaks and during quieter hours.
- The same goes for market phases: make sure that the robot performs well not only during the rise or fall of the asset price but also during trend reversals.
Summary
Although you will have to at least partially understand the work of an expert advisor or a trading robot, as well as control it, the benefits of using them are very convincing. To date, no other alternative options have been proposed that could maximize the profits of traders to the same extent. Assistant trading robots are tireless, attentive to detail, and make decisions and trade at unimaginable speed. Therefore, having mastered them, you will feel like a motorist who passes by a walking pedestrian.