Must Know, How to Trade Forex with Robots
Must Know, How to Trade Forex with Robots - A forex trading robot, also known as an Expert Advisor (EA), is an electronic tool that can carry out trading independently, such as looking for opportunities in the forex market.
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Even though the name is a robot, this device is not like a real robot, but a kind of software that can trade automatically without your orders to sell or buy.
With the development of technology in the forex market, using trading robots is not something new. There are many traders who benefit from using this EA robot. If you also want to use an autopilot robot, there are several factors to consider.
Get to know the advantages and disadvantages of trading robots
So, before you start using a trading robot, you should first understand the advantages and disadvantages. Many people choose to use robots in trading because they are multi-tasking or being able to perform various tasks simultaneously. Trading robots are also always active at all times so you may never miss important moments while trading. The robot's trading performance can also be tested. Trading with this robot is not affected by emotions so it can take buy and sell strategies rationally.
Despite forex advantages, this trading robot also has a weak side. To be able to use a trading robot, of course, you have to pay an additional fee. In addition, not all brokers allow the use of robots. This forex trading robot can only be used for certain types of trading and is less able to adapt to certain market conditions.
Choose a good robot
Because you have to pay to use a trading robot, you should choose a really good robot. This good robot is not an experimental robot from a certain website. But choose a robot that has been used for years with good profit results. Usually a good robot is tested using live trade using a real account and not just a backtest.
Test trading robots
As with the first time trading, you have to test this robot before actually using it. Testing the robot before use helps you avoid unnecessary mistakes. So you can reduce the risk of loss. You can test the trading robot on a demo account to see how it performs.
Choose a robot that works with a trusted broker
The fact is that not all brokers allow traders to play using robots. There are many reasons why brokers prohibit the use of EA robots for trading. So you need to choose a broker that allows the use of robots. In addition, brokers must also be trusted and comply with regulations regarding forex. The chosen broker should also allow players to use various trading strategies such as news trading, scalping, hedging, and so on, not just using EA robots.
One of the characteristics of a trusted broker is that they don't get funds from third parties, not dealers, and that is definitely regulated.
Trading robots have indeed been designed to generate maximum profits according to your orders. However, it turns out that using this trading robot still has a risk of loss, for example when there are unexpected price movements. In addition, trading robots can also experience errors or damage which results in operational failure. So it is very important to limit possible risks and also arrange for the trading robot to generate maximum profit.
Choose a robot with safe trading techniques
When using a trading robot, you need to change the settings according to your trading strategy. But you still have to pay attention to the rules that have been made by trading robot makers. So that the trading robot can run optimally and with minimal damage.
Avoid choosing trading robots that use dangerous trading techniques, for example robots that use averaging and martingale trading techniques. These two techniques are risky because when the floating position is minus, the lot position will continue to be added to the profit position. This technique can be useful when market conditions reverse, but if not you will be faced with a big risk of loss. In essence, these two techniques emphasize high minuses but with large profits, so they are less profitable to be used as the main forex trading strategy.
Robots must always be up to date
The forex market is a dynamic market and is always moving, so the trading robot used must also be up to date with trends in the market. With a robot that always follows developments, this robot will easily adapt to market conditions and can generate large profits as well.