What is a forex robot?
A forex robot is a piece of automated forex trading software that automates trading decisions. The most popular robots for retail traders are built around the Metatrader platform. These robots run on metatrader as “expert advisers” and they can do anything from giving you a signal to place a trade, to placing and managing the trade for you automatically.
If you have a forex strategy that is strictly mechanical and doesn’t require a human in the decision making process, you can program your own forex robot to trade for you 24 hours a day.
There are many companies out there that create and sell forex robots. If you’re in the market to buy one, be careful who you deal with. It’s common for a company to spring up overnight and start selling an “instant riches” forex robot, including a money back guarantee, only to disappear in about 45 days or so.
The majority of forex robots out there are not profitable. If you are planning on purchasing one, please do your research.
The Advantages of Forex Robots
There are advantages to using forex robots. A forex robot should be used only as a part of your overall trading plan. The right robot, used correctly, can add some padding to your bottom line.
The are several advantages to using forex robot.
Forex Robots are not Emotional with the Market
A forex robot will follow your directions no matter what. It won’t panic and close the trade because it feels like it opened it too soon or too late. It plays by the rules no matter the condition or status of the markets.
Forex Robots Trade While You Sleep
Forex robots stay on until you turn them off. You could be sleeping or just enjoying time with your family. The robot will keep it’s eye on the market and trade according to the rules that you set.
A forex robot is not a good solo strategy, because they are fallible. Not only that, but it’s good to understand the markets and trading that you are looking at, even if the robot is doing the work. That experience comes best as trading forex regularly. Forex robots can help you test and develop strategies that work, if you understand how to use them.
It’s not likely that a forex robot will make you a millionaire, despite what you may have heard, but it could add a few points to your bottom line. Be careful who you deal with and always test them on demo accounts for an extended period of time before using them live.