What are forex robots, and how do they replace classic trading?
To make money on Forex, it is optional to trade on your own. A trading advisor, or, as it is also called, a robot, will help you save time and effort, as well as makeup for the lack of trading experience.
Forex robot is an automatic trading system that, based on a certain algorithm, independently manages the trader’s funds by making transactions on the foreign exchange market in the trading platform. Read more info here: https://zomro.com/server-for-forex.
Robots have become possible thanks to the joint efforts of professional stock traders and advanced programmers. After all, the adviser is a computer program configured to open and close deals according to the specified parameters of the trading strategy.
Advantages of robots
- The robot is configured to work around the clock without interruptions, so the adviser will take advantage of many opportunities to make profitable deals. But a trader cannot trade 24 hours a day because he needs rest and sleep.
- To trade successfully, you must constantly maintain a high concentration – be attentive and focused. But a trader can be distracted, he can be tired, and all this affects the results. In this sense, robots can also give odds to humans because external factors do not influence their work.
- According to statistics, most failures in trading happen not because of an incorrectly chosen strategy or sharp, unpredictable changes in the market but because of the human factor – greed, excitement, and inability to stop in time. The adviser will never give in to the desire to trade a little, not according to the strategy, which minimizes the risks.
- Only the most experienced traders can work simultaneously with several trading instruments, but this is quite an ordinary task for a robot. You can earn on two or three currency pairs at once using an adviser.
- Forex robots can work with those technical indicators you have not yet mastered. What seems difficult for you, the adviser performs without any problems in automatic mode.
Types of trading advisors
Trading robots can be classified according to several parameters:
- By the time of trading, short-term, medium-term, and long-term are distinguished. Short-term Expert Advisors open trades during the day or only at night; medium-term robots transfer positions to the next day and can keep trades open for several days. Long-term robots allow you to profit on Forex in the long term; transactions last for several weeks. In this case, the choice of an adviser also depends on the currency pair (some are better suited for day trading, others for the long term), as well as on the goals and objectives of the trader.
- According to the type of account, Expert Advisors are divided into classic, universal, and cent. A regular Expert Advisor is intended for trading on a standard trading account, cent advisors are designed for working with cent accounts (transactions are made in micro lot volumes), and universal ones can be configured for accounts of any type.
- According to the type of trading strategy, scalper robots, trend advisors, and advisors trading on pending orders are distinguished:
- Scalpers are set up to profit by opening many short trades. Each such transaction is usually closed either after some time (1-2 minutes) or after reaching a certain level of profit (for example, 4-5 points). However, not all brokerage companies allow the use of such advisors.
- Trending robots are the most popular, as they are the most reliable. The Expert Advisor conducts a deep analysis of the market, reveals the presence of a trend and its strength, and makes transactions only in this direction.
- Pending order advisors open trades only when certain conditions are met – when the price reaches a predetermined level. Such advisers are most effective on those currency pairs that are well predicted using technical analysis.