Forex Robots – Does Automated Trading Work?

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Forex Robots – Does Automated Trading Work?




Forex Robots cash in on the repetitive, technical analysis-based aspects of forex trading. Such aspects lend themselves well to automation. Profitable long-term FX trading is about much more than that, but forex robots (bots) or automated services can have their benefits.To get more news about forex robots trading, you can visit wikifx.com official website.

Some FX robots merely deliver these signals to traders. Others can act on them. It is this latter variant that is truly deserving of the “robot” name.
Having a piece of software do all the hard trading work for you certainly sounds tempting. All you really have to do is to go about your life and scoop up the profits when you feel like it.

That’s not how automated trading works. There are quite a few peddlers of such systems out there, who would prefer that you think that way about Fx robots.On this page however, we aim to discuss serious and viable auto trading systems. Such systems require constant tweaking and human supervision.

The real question is: do these FX robots work and how do they go about making decisions in your stead?
How Do Forex Robots Work?
Expert Advisors (EAs)
MetaQuotes’ MetaTrader 4 (MT4) is the “home” platform of forex robots called Expert Advisors (EAs).

EAs use an endless variety of technical indicators and custom scripts to derive trading signals and to act on them. Anyone can code EAs directly through the trading platform. The programming language used to this end is MQL 4 (MetaQuotes Language v. 4).There is a vibrant market place where traders and programmers buy and sell the best performing EAs.

Top forex robots are well capable of scanning an ungodly amount of charts. Through the technical indicators they use, they then find trading opportunities.Once it identifies such an opportunity, the robot can recommend it to the trader. It may also act on it, opening a position according to a set of preprogrammed parameters.

Experience has shown that automated trading only really works within a tight range. Also, the presence of a well defined trend is a major plus. Auto trading profits generally only amount to a few pips. Provided the conditions are right, forex scalping robots can be quite successful.

Because of these shortcomings however, large price swings can wipe out all profits in a heartbeat.Choppy markets and negative trends are the arch enemies of profitable auto trading.It is therefore imperative that the user of the robot should find a trend of proper direction and strength, before handing over the reins to the algorithmic “brain”.

Does Automation Really Work?
It is by no means easy or simple to create forex robots that work. Programmers pour countless hours and tons of effort into building such a piece of software. The sheer number of variables it has to juggle makes it clear that this is no simple exercise.With that in mind, the very idea of a free trading robot that works, quickly becomes implausible.

That said, the actual efficiency of a working forex robot is quite unimpressive. Furthermore, authorities consider such automated traders to be unreliable novelties at best and scams at worst.
Trading Experience
The forex robots industry itself is not conducive to trust. The peddlers of various trading bots do their best to discredit their competitors. It is a bit of a Wild West out there, and the winners are seldom the traders who purchase forex robots.

Your best bet to find a working forex robot is therefore to pore through feedback provided by actual users. Make sure that you are dealing with genuine feedback. Forex robot creators have an uncanny knack for faking user reviews.

Genuine forex robots always require a great deal of user input. What that means is that the ideal user is far from being a clueless beginner. He/she needs to fully understand the market conditions in which his/her robot works. The bot is only supposed to take the repetitive workload off the shoulders of the user. It cannot be the “smarter” party .

Bespoke Robot Strategy – From You
You then have to be able to set your FX robot to properly execute your vision. Once you have accomplished that, you need to keep an eye on the market/fundamentals, and another on your robot, continuously tweaking its settings. Shutting it down altogether and devising a radically different approach is also often warranted.