There have been countless debates on the reliability of Forex robots. Do they really work? Can they be the hope for traders who have lost countless times?
Forex Robots Defined
Forex robots, which are usually built with MetaTrader, allow traders to fully automate their trading. Also called as Expert Advisors, Forex robots are coded with predetermined strategies. That means it can enter or exit trades without any human intervention.
Let’s say you have an effective trading strategy that relies on candlesticks or indicators. You can just code it in a robot and let it do the work for you. The reason why many traders settle for Forex EAs is that it saves time and reduces human errors.
Are They Effective?
You can reap the benefits of automated trading if you use it the right way. Beware of some Forex EA sellers roaming around the Internet who promise guaranteed results. More often than not, they’ll disappear after receiving your payment. For legit EAs, you can check for authentic reviews online. There’s also no harm in asking well-established traders and Forex EA users for any recommendation. Of course, there’s no better way to see if an EA really works than to test it yourself. You can use a demo or live account to do this.
Additionally, market conditions are always changing. Although Forex EAs can trade for you, they need monitoring too. Unexpected news releases and market events can hurt your trading balance. You have to understand that Forex robots, after all, are just robots. They don’t have the ability to detect changes in market movements. Thus, you have to make constant checking.
Conclusion
Forex robots are for those skilled traders who know what they’re doing and have valuable knowledge in algorithmic trading. If you are a beginner, trading using Forex robots may not be ideal. We advise that you devote time and effort to gain trading knowledge instead of spending money on Expert Advisors created by some sellers online.
Related: 4 Forex Trading Pitfalls to Avoid
