The development of technology has greatly changed the work with the stock markets. To become a trader, you only need a little capital and knowledge – you can start small. The trading method has moved online, where trades are managed in unique computer platforms – terminals. You can trade from home or any other place where there is internet.
Now you don’t have to spend a lot of time on it. All of the work can be delegated to a trading robot. This is a program that can fully automate transaction tracking. The system is built on a well-thought-out algorithm, while the trader only needs to set some of his settings.
Forex robots have a benefit over humans – they have no feelings and are guided only by a given algorithm. On the other hand, unlike live traders, they do not analyze news and events that may affect the trading outcome. They make life much more comfortable for a trader and save time for other essential things. This is no longer fantasy but the reality in which we live.
For the successful use of such new technologies, before buy a forex robot, you must initially study their features of operation and familiarize yourself with the technical documentation / manuals from the developers.
What do you need to know about Forex automation programs?
They are programmed with various action algorithms that retailers use manually. And therefore, everyone can choose a bot to their liking.
Here are a few of the most popular ones:
- Indicator. Fundamental analysis is involved in its work. However, a person can work even better than a robot in this case.
- Channel. Most traders consider it universal. The process takes place in the price corridor. At the lowest limit, resources are bought up; at a high limit, they are sold. An additional plus of the strategy is a low degree of risk. It can also be brought to automatism because the client controls the limits independently.
- Grid. Founded on trading with pending demands. The starting point of this method is the present practical value. Orders are placed from it at the same distance. In this case, the bot is a particularly effective assistant because creating such a grid manually requires a lot of time.
- Scalping. This is a short version of the session when all attention is focused on the most valuable levels. With their help, the algorithm creates an order with the specified parameters. The duration is usually up to half an hour. The profit from the transaction cannot be called significant. However, it will be multiplied by a large number of sessions. And there can be hundreds of them during the day! That is why this strategy, although risky, is prevalent.
- Trending. In this case, the key task of the robot is to calculate the right moment to start a deal based on a downtrend or an uptrend over a long period. And in the case of the planned reversal – to secure income. This strategy has an opposite algorithm of actions – countertrend. Then the program buys and sells on corrections and rollbacks.
Traders actively began to introduce electronic assistants in trading. And this is a natural phenomenon, given their advantages:
- Mechanization. The program independently performs all actions rather than the dealer.
- Keeping time. You can do other things while the robot trades on the stock exchange.
- Accurate definition of signals. If the situation seems ambiguous to a person, then the program recognizes the signal accurately enough to make the only right conclusion.
- Speed. Instant sign recognition and work opening. In the case of high-frequency trading using HFT technology, dozens of trades are opened per second.
- Lack of emotion. The robot does not know fatigue, inattention, momentary impulse, and despair. It does not violate the rules of chance direction.
Summing up, we can say with full confidence that with the correct configuration and use of forex robots, they can reduce the list of routine tasks that a trader performs manually. It is a powerful tool if used wisely.