Reasons You Need to Trade with Robots

Discussion in 'General Forex Discussion' started by Adam Smith, Nov 7, 2016.

  1. Adam Smith

    Adam Smith Trader

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    Trading foreign exchange has been traditionally seen as one of the most effective ways to make a lot of money within a short period of time. And since most people now trade via various platforms (MetaTrader 4, MT5 and cTrader to give a few examples) that are found in most brokerage websites, they employ almost all the aids and tools which are provided on those sites; the ones which help a trader to go about their job much more smoothly. A few of these tools are: indicators, analysers, charts, and last but not the least; robots. What are these ‘robots’ now, one may ask. These are software programmes which are designed in a manner to let them trade on behalf of human traders. They are programmed to only accept certain kinds of signals and trade when particular conditions are prevalent in the market.

    The success rate of robots is almost 60%, owing to their propensity to trade only within the spreads and squeeze out a few pips for every single trade they execute. They do not venture too much outside of the range at any point of time, and follow only those signals, which they have been programmed to abide by. This makes robots one of the biggest choices, when it comes to profitable trading in the foreign exchange market. Although there are lots of fraudulent robot peddlers out there (which is why traders need to exercise a bit of a caution while making a purchase), the vast majority of dealers are genuine and their robots can generally be expected to put up a good show.

    So what are the major benefits of buying robots (sometimes referred to as ‘expert advisors’)? Below are the points spread out in detail: (points collected from [URL Removed])

    1. They trade about 24 hours per day; that is, the entire duration for which the forex market remains open 24 hours a day for operation. This means that the small profits they make on every trade they execute, would ultimately add up to a substantial amount.


    2. As mentioned before, they only trade within the spread and hence do not undertake risks. So, there is very less chance of them running into huge losses until and unless there’s a radical spread movement owing to any significant economic or political development having taken place in the world.


    3. They are not prone to human emotions; hence, they do not take any major risks and do not act out of greed. They use only those signals, which they have been programmed to use.


    4. Robots, unlike human beings, do not take any time to identify trends in a market; and to analyse whether a condition is ideal for trade. Being automated systems, would only take a few seconds to process market and chart information and take the appropriate position as dictated by the signals. This means that the speed of a robot enables it to take trading positions much before the prices slide past the ‘take profit’ or ‘stop loss’ points. This is obviously hugely beneficial to a trader because it ensures profits. Also robots would be able to take positions on a trade at a point where one position would create similar other positions at the same time in the market, thus magnifying the chances for trade.

    These, in short, are a few reasons why you might consider trading with robots. Happy trading!
     
    Last edited by a moderator: Nov 7, 2016
  2. Enivid

    Enivid Administrator Staff Member

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    What a load of nonsense!
     
  3. daniele roos

    daniele roos Newbie

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    Forex robot is a way of automating your trading style based upon your coded logic. Now, if your trading logic is right and it has the potential to deliver profits then definitely Forex robots can do the trick. they can benefit you in following ways:

    Robots can trade for you 24 hrs per day without food or sleep.
    It saves your time to do other stuff instead of looking at the computer screen all day.
    Most Forex robots are developed with parameters that can be back tested and optimized on quantifiable data.
    Forex Robots operate on a set of rules without greed, fear, ego or bias. And are able to identify and react to opportunities faster.
    You can make your strategy far more sophisticated than you ever could trade manually.
    Robots consistently carry out the trading plan.
     
  4. Robian

    Robian Active Trader

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    I think minuses of robots should be mentioned here as well, for newbies to know what they are going to face while they start trading with robots.
    Robots are programs that are not able to change the strategy in some important moment. So they have to be controlled by real traders. Moreover, they can't perform well constantly as the market changes too.
     
  5. Gerrard Hank

    Gerrard Hank Trader

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    Forex robot trading allows for trading without emotions, thus allowing it make constructive market decisions. There’s a stop loss feature in forex robots that allows them minimize losses and increase gains.
     
  6. buldy

    buldy Trader

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    I wouldn't say load of nonsense, but just to advice that we should carefully consider the disadvantage of using robots before using them. That is the only thing we need to do, because there is some good in using a robot I have noticed!
     
  7. Twin butterfly

    Twin butterfly Active Trader

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    No matter how many pros of of using Robots are there , many trader like me still prefer to work manual and not want to have any robots in our trading system.
     
  8. buldy

    buldy Trader

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    Very direct but I like it, whatever works for us we should definitely stick. And we don't need to go after the crowd or be influenced by the majority.
     
  9. artfor

    artfor Trader

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    The idea is very interesting, but we can not rely entirely on the robot!
     
  10. buldy

    buldy Trader

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    Yes we cannot rely fully on them, so even though we don't have time that much we can still manual every now and then. Maybe that would help create a balance!
     
    artfor likes this.
  11. FoxyFoxy

    FoxyFoxy Newbie

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    There are advatanges to using a robot but it is very difficult if not impossible to factor everything into what a robot. Only a human can really view the market this way. And how do you get a robot to understand fundamental analysis and market sentiment. I perfer to stick to my own manual trading thank you
     
  12. artfor

    artfor Trader

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    I agree with this, they are able to process a lot easier.
     
  13. Twin butterfly

    Twin butterfly Active Trader

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    People who dont know trading first start with robot trading than they move to manual as they learn about robots and its function.
     
  14. wisetrada

    wisetrada Active Trader

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    Automated trading with robots may be cool, but I am not very impressed with how they react to real life market conditions like major news like a human trader could.
     
  15. buldy

    buldy Trader

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    Yes, but then many enjoy doing their thing their own way. They want to see everything that happens so they would want to manual trade all through, you don't need to judge any for whatever method they use for trading as long as it works for them.
     
    artfor likes this.
  16. FoxyFoxy

    FoxyFoxy Newbie

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    That is true. It is easier to find out if your method works or doesn't work when using a robot because you can backtest the EA in a few minutes. If it makes money then it MAY make money in real like but if it loses money on backtest then it will almost certainly lose in real life
     
  17. buldy

    buldy Trader

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    You know guys, I don't really see any major issues with trading with a robot other than technical problems. These are common everywhere, just staying head up would help cut down any problem like that.
     
  18. buldy

    buldy Trader

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    The problem is; some don't just have the time. Probably they do something else, so they just have to rely on robots without any reservations.
     
    artfor likes this.
  19. artfor

    artfor Trader

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    I am familiar with this situation, so I find robots useful)
     
  20. Twin butterfly

    Twin butterfly Active Trader

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    Robots are useful for those who are not ready to work in this business and dont having much experience but still want to earn extra money. True is that robots work but for few time period then it goes failed..
     

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