Why do we need robots for Forex trading?
The main thing a robot has to deal with is trading without the trader, who often can't be in the right place at the right time, whereas a robot is always on the alert.
Of course, you can't discount the psychological component either. The robot will relieve traders of stressful workloads, because even the best professionals in currency trading are not immune to mistakes. A person can be tired, sleepless or ill.
Statistics show that about 80% of forex trading is done by robots and the trend is continuing in favour of automated trading. But of course before using trading robots traders need to understand their functionality, be familiar with the principles of the system, be able to make necessary settings and keep track of statistics.
So, what are the functions of a forex trading robot?
- Constant monitoring of selected trading tools; - instant processing of a large array of input data; - automatic trading without a trader within a strict algorithm trading strategy. It is no secret that a good robot can trade better than a trader, especially in a saturated news environment. To accept information, process data and make a decision about entering or closing a position, a robot will need a couple of seconds, while a human can hardly find his or her way around during this time.
Depending on robot's algorithm, we can mention the most popular trading systems:
- Trend - the most popular robots, which determine the entry point in the direction of the current trend and close the transaction when signals of a change in direction are received:
- Working on the principle of Martingale - also quite popular among traders robots, although trading with them can lead to complete loss of the deposit, as the robot, with an unsuccessful transaction opens the opposite lot twice as large as the previous one. If it fails here as well, robot opens a new position in the opposite direction but with four times bigger lot than the original one. Considering that forex trading is highly dependent on news, releases and other fundamental factors that are instantly recognizable, but are not always the impulse to start a trend, using robots with Martingale often looks overly risky.
- Scalping - robots most commonly used in forex news trading. Systems quickly process the received information and instantly open or close positions.
To choose a trading robot, trader should clearly define the range of automated trading objectives, choose the most appropriate trading strategy and make a full preliminary test of the system.
Experts recommend consulting professional developers, because in this case you can not only order a robot for certain tasks, but also get certain guarantees and service support.