Forex Robots – Pros and Cons

Forex Robots – Pros and Cons

Posted on July 14, 2011 Admin

In this article, we will examine advantages and disadvantages of using a Forex robot but first let’s quickly understand what Robots are. A Forex robot, in layman language, is a software that reads the steps of your trading algorithm, analyses the markets on your parameters and automatically places a trade on your behalf onto your broker platform.

All in all, a Forex robot does precisely what you would do in the markets if you were to manually login, read the markets and place your trades. Given the rules of perfect trade opportunities and clearly-defined principles of risk-management/position-sizing, these robots can easily eliminate the possibility of making a human error in your trading judgment.

A successful trader knows how much of hard-work and commitment is required in identifying each profitable trade and then converting it to profits. This hard work, at a certain stage, tends to test your patience and changes your mind on your rules, hence bringing in losses. Thankfully, brokers now allow us the use of robots for automated trading and what more can you ask for that the broker itself facilitates you with the coding-language required to write these robots. These Forex robot are written in a very popular language ‘Meta-quote’ available on your meta-trader platform where the script of the robot can easily be loaded onto your platform. After this, it is this robot that will take your place as a trader and handle your account for you as per your rules, as long as you want. So your Job in the end is to only keep opening new accounts, feed some money in it, load your robots and leave the rest to your robot intelligence. Once you have a Robot, the only requirement would to be to keep your computer switched on all the time but now-a-days, even that’s not critical.

Of course, you always want to keep experimenting new systems that you make but do not feel like testing the old-charts to see the applicability of these new systems. A robot does this job for you where you just need to indicate an old date and the robot will back-test with the retrospective effect. A powerful Forex robot has the potential to scan even one-hundred years old data in less than just an hour and can present a detailed report on your system-performance and potential success of it. What more that the robot can also easily optimize your system based on its maximum possible draw-downs, average-wins and average-losses and suggest you the ‘even-better’ rules. So if we were to compare, we would easily find that the advantages of using a robot are much more than its disadvantages. However the condition that’s paramount for this set up’s success is that your robot is your own brainchild.

A lot of companies and individuals are seen luring the beginners with their so called ‘unbelievable’, unimaginable, killer Forex robot that can trade for them for a very cheap price. Gullible people tend to experiment with these fake robots and end up with huge-losses in their accounts. It’s important that if you wish to automate your trading, you write your own algorithm and then have it converted to a robot with the help of a programmer. In this competitive era, the programmers can make the robot for you at dirt-cheap prices and in the end what you get is your own robot, with your own rules, your intelligence and your own abilities. Of course there’s the risk of losing your intellectual property when you share your system with a programmer and then finally with the broker as good systems spread like crazy. Most of the traders are possessive about their systems, but for a second if you could leave that selfish thought behind, you will see that the whole essence of forex trading is ‘ finding financial independence’ which is not so literal as long as you are physically involved with daily markets. It’s only the ownership and use of your own Forex robot that makes you a complete trader and a fully independent individual. To achieve that super-exclusive freedom, if it demands certain sharing and compromises on your intellectual property, then be it.

Best Forex Indicator

Forex Scalping Strategies

This entry was posted in Forex Trading Tips, and tagged . Bookmark the permalink

Forex Trading Tips

Dive into the heart of Forex trading excellence with our "Forex Trading Tips" category. Uncover a treasure trove of expert advice, strategies, and market insights designed to elevate your trading game. Whether you're a novice exploring the world of currency exchange or a seasoned trader looking for that extra edge, our articles are tailored to empower you at every level. Discover time-tested tips on risk management, market analysis, and effective trading strategies that can help you navigate the dynamic Forex landscape. Join us on a journey of continuous improvement, where each tip is a stepping stone towards mastering the art of Forex trading. Maximize your potential and make informed decisions with the wisdom shared in our Forex Trading Tips category.

Trading Tools

Forex Trading Tools and Resources

Posted on December 9, 2023 Admin

In the dynamic world of Forex trading, having the right tools at your disposal can make a world of difference. Whether you're a seasoned trader... Red More


Social Trading Platforms: Connecting Traders for Success

Posted on December 2, 2023 Admin

In the ever-evolving landscape of Forex trading, the power of community and collaboration has taken center stage with the emergence of social trading platforms. These... Red More

Forex Pairs

Unveiling the Top Forex Pairs to Trade for Profitable Ventures

Posted on October 20, 2023 Admin

In the fast-paced world of forex trading, the choice of currency pairs can significantly impact your success. Wise investors understand that not all pairs are... Red More


Forex Risk Management Strategies for Small Accounts

Posted on October 18, 2023 Admin

Trading in the Forex market offers significant opportunities for profit, but it also carries a substantial level of risk. For traders with small accounts, effectively... Red More

Forex Trading Psychology Tips

Forex Trading Psychology Tips for Consistent Profits

Posted on October 16, 2023 Admin

Successful Forex trading is not only about understanding technical and fundamental analysis; it's also about mastering the psychological aspects of trading. Emotions can play a... Red More


The Top 5 Essential Indicators for Success

Posted on September 22, 2023 Admin

In the fast-paced world of forex trading, having the right tools at your disposal can be the difference between success and struggle. Among these tools,... Red More

Categories List