A forex robot is a software program that eliminates the human factor from trading. Since programs, do not respond emotionally to market developments, robots possess a clear advantage over the human trader who is normally constrained by his natural disposition to get emotionally involved in the market movement. In this era of automation, the proponents of automated trading propose that we are fools to draw charts manually and to analyse every twist and turn of the market with eyes glued to the screen, especially when the computer can be programmed to do all these in our place and to do so with an efficiency that is impossible to match for a human being. Since everyone emphasizes the importance of discipline during trading decisions, of the crucial role of solid rules which are followed with punctuality and consistency, the creators of these programs submit that there is no better choice than leaving all the practical aspects of this task to an automated program.
Expert Advisors (EA’s)
The most popular automated trading solutions which you can buy and implement in your trading platform are known as Expert Advisors (EA’s) since they advise you on how to trade.
Many of these EA’s use the Martingale method which means that you double your funds on every trade, and thus your trading increases exponentially. These EA’s are very profitable when you are on a winning streak, but the risk is the same, and you may expereince substantial loss of your funds.
Here are some top trading EA & software applications:
- CNT (Currency News Trading) EA
- FX News Alert V3.0
- Built-in EA for MT4
- FX Pulse 3.0
In conclusion, A signal provider with a good automated system can deliver good results while the new trader learns more about Forex. So, what does a forex robot really do? A robot establishes some rules for the trade which will be in the form of some technical indicators or price patterns as evaluated by the computer. Then it must apply these rules for profiting from market events, as signals are generated throughout the trading day, and into the future. What does the back testing prove? If the strategies were applied in the past, the program would have registered profits. What must the program do? It must earn for us in the future because past profits may make us smile, but they will not add new gain in our pockets.