Forex Basics

What is a Forex robot?

 

Many traders use modern technological methods in trading operations, which provides them with many important advantages.

An increasing number of traders prefer to use trading systems or programs that allow them to automate their trades – which reduces the burden of emotional stress while trading or compensates for weak self-discipline. These are precisely the tasks of the Forex robot, which is the MetaTrader 4 platform and one of the best trading stations that provide an appropriate environment for the use of these automated programs.

 

Meta-trader 4

The Meta-trader 4 platform provides complete solutions to customer needs, including charts, news feeds and many more. You can also use the platform’s original programming language, MQL4, to write custom indicators or trading strategies, which expert advisors call.

 

Expert Advisors

Expert Advisor (EA) is one of the names given to Forex robots, which are being developed to be suitable for use on the Meta-trader 4 platform. Given the trader’s ability to customize the expert advisor’s settings, he can take advantage of this feature in applying any trading strategy or risk management system as long as the designer is aware of how to encode these settings within the program. 

For example, a trader may design an expert advisor to open trading positions in a market of a certain size at the intersection of the moving averages.

 

Advantages

The main advantage of using a Forex robot is its ability to free a trader from the negative impact of human emotions, which can be a major barrier for many traders if they are not well managed. Feelings of greed, emotional stress, and emotional stress accumulate easily and quickly when trading manually, which may lead the trader to lose his money and quickly fall prey to frustration.

On the other hand, the robot allows the required strategy to be executed very smoothly and with a high degree of accuracy. The robot can also perform all the difficult calculations of the risk management elements in a jiffy, and at a speed that exceeds the trader himself. Not only that, you can design robots to trade around the clock and in various market conditions, so you will not have to sit long in front of a computer screen all day and night.

In short, the Forex robot can withstand a great deal of burden and hard work borne by the trader, noting that the trader is already making strenuous efforts in the stage before the operation of the trading program, especially in the stage of development and testing ideas.

 

Restrictions

Of course, there is no easy way to make profits in the Forex market, and therefore it is not possible to deny the existence of some restrictions and defects associated with the use of Forex robots. 

One of these dark aspects is the presence of fierce competition in the Forex market, and thus it is difficult to obtain a robot that is sufficiently effective to achieve reasonable success.

The fact of the matter is that the robot proficiency test should not be limited to a few weeks, as it should be applied to trading data for several months or even years with rigorous statistical tests to demonstrate its success. This step is absolutely necessary because the trader’s lack of confidence in the robot sufficiently will prompt him or later to ignore his signals in difficult times, and this is the first step on the path to failure.

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