Advantages and disadvantages of Robot Trading Forex (EA)

Posted on– (EA)Robot Trading Forex (EA) is a tool that can trade forex automatically. Before wearing it, there are advantages and disadvantages EA You need to know.

Autotrading Robot or often called by the term “Expert Advisor” (EA), is an electronic device that works yourself to find opportunities open trade, both open sell or buy in the forex market. Robot Trading Forex (EA) not here physically.

But a software for forex trading automatically. Without You doing orders Buy/Sell, the robot will be working on their own to You.

Speaking of EA, will not be endless. Especially when compared to manual trading. To be clear the base and edges, let’s peel what are the advantages and weaknesses of Trading Robots.

The Advantages Of Forex Trading Robots

Here are some of the advantages of Trading Robots which become the main reason why many traders stop trading your own and replace using EA:

1. Multi-tasking

Forex Trading robots are able to run hundreds to thousands of instructions per second to comb and execute any trading opportunities forex. The workload was clearly beyond the limits of human ability, but it is easy-easy to be done EA.

However, keep in mind, not all Forex Trading Robot performance as high as that, because depending on the system that underlies the making also

2. Not affected emotions

In the market conditions of any kind, Forex Trading Robots only execute instructions in accordance with the standards of programming, without the intervention of emotions.

In a sense, the EA will execute such orders as buy or sell and put Stop Loss and Take Profit exactly as the formulation of the program.

Different from manual trading, where traders are easily affected by emotion as the face of price volatility. They will usually move the position of SL and TP by feel greedy or vice versa, anxious face prices that do not move as you wish. In the long term, a bad habit that can become the barrier to success, so EA free emotions are seen as more superior.

3. Active 24/7 non-stop

Connect to the VPS, Forex Trading Robots can work all day, non-stop. So, so there are trading opportunities appear, the Robot will always be ready to execute a market order, at any time. In other words, if You use EA, no longer need to worry about the missed opportunities of trading, even though You are busy with other activities or resting.

4. Trading performance can be tested.

Because the Robot is always consistently follow standard programming, then the performance of his trading can be measured with a clear anyway. Generally, the performance of the robot trading is measured by the method of the backtest and forward testing. So, before You buy Forex Trading Robot, make sure first that reports good performance.

Want to buy a robot EA but dizziness prove its performance? Don’t be confused, this article will give You proof of the performance of the real robot trading Forex with easy and simple.

5. New features are constantly updated and growing.

As the development of the process of the development of Forex Trading Robots, more and more new features will also grow to follow the dynamics of the market. For example, features news filters and invisible mode (to avoid the broker that the stop-loss hunting).

So You can enjoy its advanced features, find a developer of Forex trading robots that provide auto-updates. With these features, the Trading Robot will always be up to date with the latest features.

The Weakness Of Forex Trading Robots

No ivory is not cracked, Forex trading robot also has shortcomings, among others:

a. Take an additional cost.

Trading using robot EA has certainly cost more than manual trading. In addition to the cost to buy the robot itself, You also have to regularly pay the cost of rent VPS. And believe me, the better the quality, the higher the cost.

b. Less able to adjust to certain market conditions.

As the news release high-impact, usually traders opportunistically utilize the turmoil of the movement of prices to achieve a profit. Activities last name cool is news trading, and is usually done by scalpers.

However, the activities of the risk is much higher than trading on normal market conditions; if again lucky to be able to bring home a lot of money, if broken then the contents of the account can be sold instantly.

Unfortunately, the trading robot is not designed to be able to adapt to the situation. That’s because, basically, “how to think” trading robot designed in a linear (straight notok, not neko-neko), whereas at the time of the release of news of the movement engaged in a volatile and random.

c. Demanding special skills to set it up.

Uh, who’s to say if you already use Forex Trading Robot (EA) does not need the knowledge of what-what about trading?

Precisely because the trading process running full automatic, then at certain moments in which the market conditions in outer habits, You are the first person who should take over the control.

For that reason, it is recommended to use Forex Trading Robots if You are already experienced enough trading and has a sharp intuition in knowing when the market conditions are not conducive.

Second, You also should understand about the terms in IT and the use of software to install and care for the robots trading the Forex. These things need to be studied so that the robot EA still run in accordance with the procedure.

d. Not all brokers allow the use of Trading Robots Forex.

Once again, EA can send tens to hundreds of market orders in the time period is short enough. If enough traders use Forex Trading Robot, it could be the broker’s server is burdened by a long queue of market orders. On the situation was, it could be the broker’s servers are experiencing lag or even freeze.

To avoid lag and freeze the server, some brokers will prohibit the use of Forex trading robots on the type of account or a specific currency.

Regardless of the weaknesses that have forex trading robots, do You still want to trade using EA? See also the article How to Choose a Broker That is Suitable For Your EA as additional guidance.

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