Following the spread of the COVID-19 pandemic, most companies and businesses switched to working from home over online networks. With zoom meetings and calls, working from a distance was made possible. This also gave us an insight into the fact that if we harness the potential of technology correctly, we can do wonders!
The same has been true for trading in the forex markets. Online trading had been making its presence known in recent years, but it became extremely effective during this pandemic. Whether you were a manual trader or a proficient online trader, trading using bots became the only viable way to trade in the market while staying safe.
But for a long time, traders have been skeptical about using forex robot and this sudden need of using it left most of the manual traders bewildered. We understand that to successfully extract the potential of these, a substantial amount of research needs to be done.
In this article, we are giving you a comprehensive view of forex robots and how they work. In addition to this, we will be listing some pros and cons along with the effects it will have on trading. So, let’s start, shall we?
The Basics of Forex Robots:
Just like any computer program, these mechanical traders are also a type of computer program but a little more advanced than your average word. While manual trading completely remove the need for those factors while trading.
These programs are meant to help you take decisions to buy or sell currency pairs at a certain point in time with a set of trading signals.
Most of the articles that you read will make you believe that you can completely rely on the robots, but such is not the case. To ensure that you gain maximum profits, you need to constantly supervise them and make changes. So, a huge shout out to the manual traders, your expertise will still be needed for efficient trading!
Working of Forex Robots:
When it comes to forex robots, most people think it’s an easy way to make money, but it’s not. These technological marvels are developed with complex custom scripts and technical indicators that help them scan the charts to find a buy or sell opportunity. Programmers put an innumerable amount of time into developing the best software products for the market.
To efficiently use these, you will need the knowledge of excellent trading strategies. If you think that you can make easy money with forex bots, give it a second thought!
Get a Forex Robot:
Now there are two ways in which you can avail of the benefits of using a bot
- Either you can buy it from a developer
- Or you can build it on your own
But please be aware that if you decide to build your own bot, you will need expert knowledge of computer programming language, specifically used for building these. We know, most people remotely have any idea of what platform or programming language is used to build them. So, we would suggest not going that way!
It would be wise to buy it from a developer. Now it might sound easy to choose a forex robot but let us give you a bit of a picture!
Forex Robot Trading Experience:
Most providers will claim that the bot developed by them is the best in the market by discrediting their competitors. We urge you to not fall for those claims.
There have been cases where a provider introduced a bot claiming that it will provide you instant riches but vanished after 45 days causing huge losses to the traders.
We want you to use these bots for trading and make profits, we don’t want you to fall for scams. Then you might be wondering how can you choose an efficient option without risking too much?
The best way to go about choosing is by reading the reviews given by traders who have used the bots. Reading about the intricacies and pros and cons of a specific forex robot will help you choose the right one.
Try to read genuine feedbacks that will give you an insight into how you can successfully use the robot. Beware of fake reviews!
Advantages and Disadvantages:
The biggest advantage of using forex bots is that they are available 24/7 and hence can help you trade even when you are going about your daily life routine.
As mentioned in the beginning, they will help you make a better buy or sell decisions based on forex trading signals. These robots in no way will be able to take any independent trading decision.
Manual discretion and knowledge of trading strategies are a must for proficient use of robots. So, if you are a beginner at trading, we suggest you not to use forex robots for trading. They are meant to take away repetitive tasks of trading from the hands of the trader by leaving the important trading decisions on the trader.
Step 01: Finding How the Robots Function
All that depends on the logic that is programmed into the robots. Before you can pick a robot, you need to find out what logic governs its functioning and what style of trading is used. Just like not all traders think alike, not all robots function alike. And just like not all traders win big in the markets, not all robots give you the required results. Now, you cannot go about looking at the programming syntaxes of all the robots. The solution? Find a forex expert, who knows and can guide you. Online platforms can give you this information and you can even ask those using this kind of technology to give you reviews about the performance and the style.
Step 02: Find the Right Lot Size and Currency Pairs before You Set up the Bot
Well, this is a no brainer. Most bots work on an automatic lot-sizing based on your account, so that cuts out the need for you to make a decision about that. So, you should choose a robot that has an automated lot-sizing feature.
Regarding currency pairs, choose the ones with a low spread. The lower the spread, the better the results. Steer clear of high volatility pairs and you will be good to go and grow!
Also, don’t forget the setup.
Key points to consider while setting up the system: A robot that works 24 hours, 5 days a week.