Robots make money Pros and Cons
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From the author
Any beginner or experienced investor, constantly surf the Internet in search of methods to increase their capital. Despite the fact that there are already excellent and working methods for generating income, you have to look for new ones, why is that so? The world does not stand still, progress is rapidly moving forward, replacing the usual old with innovative new. All these rules work in the investment market, you can not get hung up on one thing, you must constantly move forward and adapt to market innovations.
What is a robot?
In this case, it will be about robots that bring income to the investor, through automated trading on the forex exchange. It follows that A forex trading robot is a program that performs a specific algorithm aimed at increasing capital. The basis of this algorithm is the execution of automatic trading transactions for a trader using a pre-programmed trading system.
The results of trading robots are so striking that this program has gained worldwide recognition and is becoming popular every day. For example: “In 2000, 600 traders worked at the headquarters of the investment giant Goldman Sachs, but by the year 2017 their number was reduced to two people. The rest of the work is now being done on automated stock robots that serve 200 computer engineers. ”
Exchange robots for trading in the Forex market have long been used by both private investors and professional companies, and there are many reviews of this on the Internet. But at the same time, it is worth noting that in itself the existence of a trading robot program does not guarantee consistently profitable results. That is why such a trading method has both its admirers and opponents - traders who prefer to trade in the old manner, by hand.
It is not difficult to assume that experienced traders who have given themselves to trading in the forex market for many years are quite skeptical about the transfer of control of their forex account to a robot for automated trading. But at the same time, the understanding of the algorithm will bribe to test it, because automated trading is, firstly, reducing the time to make a decision, which leads to successful transactions more often.
Newbies, having encountered on the forums a description of forex robots and the results of a trading robot, are happy to test this trading method, since the lack of experience is more than offset by the algorithm of the robot itself for stock trading. A forex trading robot can correctly open and close trade orders at the right time, analyze the likely market movement, and also react to a negative trend faster than a person does.
For completeness, consider the pros and cons of robots trading in forex, then to make their own conclusion regarding them, and see if you can earn money on forex robots.
Pros from working with a robot
No emotions. No fear. The trading robot will not miss a single transaction on the exchange, despite any market correlations. A trading robot is not important, you have a million dollars in your account or only a hundred, he has no emotions, he doesn’t care. This results in complete composure and precise control. A forex trading robot follows a mortgaged algorithm for the entire time it is running.
Instant market analysis. Even if you are the most brilliant forex analyst and your reaction rate to market changes is instantaneous, the indicators of a trading robot will still bypass you by orders of magnitude and spend the fx trading robot much less time for analysis and decision making. Because it is a computer program whose execution of commands takes a fraction of seconds.
Simultaneous trading on multiple instruments. Of course, you can open several monitors for each currency, analyze and trade, but still, you have to concentrate on one, and then still have time to open and close transactions. At the same time, even a free trading robot for forex does all this in parallel and instantly, without spending too much time.
Free time. The transition to automatic trading is an opportunity for the trader to stop sitting at the monitor and become freer. It only remains to periodically monitor the work of a profitable forex robot using mobile devices, spending only a minute of its time on it. This is especially pleasant, with sharp jumps on the market in the evening or early in the morning, when any normal person just needs to rest.
Joint trading. The currency robot in the forex market trades according to its predetermined algorithm and we do not interfere with it, but for example, we received a signal of market movement, and we know for sure that you can make a good profit on this. The robot allows the trader to conduct its own separate trade and does not mix trader orders and its own in one pile.
Cons from working with a robot
News background in the market. Unfortunately, the robot on the stock market is not artificial intelligence, so that in addition to analysis, it also takes world news into account for possible changes in the market. The trader here is more perceptive and savvy, surpassing the best exchange robot. Therefore, manufacturers of robots periodically release updates to their products in order to take into account changes in the market due to the news background. But this, alas, happens after the fact.
Reverse market movement. Based on the algorithm and analysis, the forex fx robot opens new deals. But it so happens that the market goes the other way and there is no explanation why it does this. Perhaps some big account is closed and it affects the course, perhaps some news is not known yet to the world. If the trader responds immediately, the robot can continue to open trades against the market, unprofitable. To do this, of course, they use trading monitoring on the mobile application, so that at any time you can turn off the robot and analyze the situation or consult with traders.
Many different robots are beautiful in theory and not very practical. A trader can describe very well the algorithm that he would like to automate, but a programmer can understand everything in his own way and do as he sees. Therefore, you can buy a forex trading robot on the market or download a lot of free exchange trading robots with different work strategies, but as practice shows, they really give the unit results. And if you use a robot, it’s not a fact that its algorithm is really calculated to the smallest detail, as described in theory, because even a novice programmer could write it, not understanding anything in trading on the market, and it doesn’t matter whether the trading robot handles options binary or forex scalper robot.
Black box. To understand what the robot does on the stock exchange and how it reacts to the market, there is usually an instruction for the algorithm. Having studied it, there is an awareness of what exactly the robot is doing and what to expect from it. But it happens that the manufacturer hides this information, offering only promises of successful trading, and the price of such a trading forex trading robot can be very high. Although it should be said that free exchange robots do not always display this information. As a result, there is no understanding whether the robot is behaving correctly now or not. There is no understanding when it went against the market and you need to pause or turn it off. Therefore, before you buy a robot for trading on forex or download a stock robot for free, you need to make sure that it is fully open according to the algorithm for the trader and there is a description of the parameters, there are real reviews about the work of this stock trading robot.
As we can see, the robot is really a very powerful tool for trading automation. A well-written and transparent algorithm, correctly conveyed by a trader and correctly understood by a programmer, a serious claim to oust live traders from the market and move to automation on a global scale. However, you cannot put a robot in a bidding process, and go to rest yourself. Yes, a forex trading robot can facilitate routine work, but a trader must continue to analyze the market (albeit with less intensity), identifying its micro-changes and priorities. It is teamwork, a trader + a forex robot program that will give a guaranteed positive result. It is impossible to refute the fact that auto trading on the market by robots is a trend and here you can really increase your capital. The main thing is to understand that working with a robot requires your at least minimal training and growth in this direction.