A forex trader’s usual way for them to create a trade will be: Open order, Close order or modify order and all done manually with click of a mouse. However, for many reasons of traders such as not wanting to follow price chart continuously, trading news, or a certain mystery from the market, manual trading will lose opportunities or many other problems. Forex robot will be the best way to solve this problem.
What is robot forex trading ?
Many traders often call it “EA Forex” or “Robot Forex EA” or “Robot Forex” or referred to as EA (Expert Advisor). The Forex robot is exactly a piece of software and can only be used on certain platforms when the coder writes code on it. Specifically here is the MT4 platform (MT5 is similar).
The Forex robot will work exactly like the concept of the coder. Or the coder follows another trader’s idea. Forex robot will do everything on the trader’s behalf automatically if the price chart of the market is active.
You should also remember that Robot Forex will also have 2 types: EA Automatic and EA semi auto.
10 advantages and disadvantages when using Forex Robot for investors
Advantages of Forex robot:
- Certainly Forex robot is not dominated by emotions or psychology.
- Traders may not need to spend a lot of time observing the chart, but the robot will watch all or part of the time for you. It is up to the Forex Robot to support this function if the coder writes it.
- For Scalping traders perhaps the Forex robot is a great advantage. Because the speed of the robot is very fast.
- The more advanced the coder is, the better it is to write better robots and make full use of existing technology. This will be a very high requirement for a trader with a strong demand in terms of taking advantage of technology (there is certainly a high payout).
- As also said, Forex robot also has the form of “semi-automatic robot”. Thus, the robot will always satisfy the problem when the trader wants to give it when to enter the order? when should only stop? and whenever you want the robot to work.
Disadvantages of Forex robot:
- Because, Robot Forex is computer programmed so it has no emotions. As long as the coder completes the design, testing the Robot incorrectly can lead to the Automatic Robot entering the wrong order, which can lead to heavy losses for the account. Therefore, before running the robot on the broker platform you should test carefully first to see if everything is smooth? Then you find out where the error is located?
- In today’s days, almost everything is limited to free use. Therefore, if you do not know anything about the EA code, you need to use a more complete robot. Then surely in the future you will have to pay money if you want to update more features for the owner who wrote that robot. That is, you will probably have to depend on that coder.
- There may be an additional cost to rent a VPS. Currently, the brokers support not free or free, but mainly the condition of the deposit amount or trading volume is enough.
- You may have to depend on a number of IBs giving you Free Robots on their terms. But the important thing if their robot trades a loss on your account then it is difficult to compensate for the damage.
- Having touched on application programming, Robot is also computer programmed software. If unfortunately, you use the robot of some coder that he wants to get some information about your account is possible. you should have a little bit of experience.
Which Forex Broker should I choose to use Robot Forex (EA)?
I myself am a trader who has been trading for many years. I feel that whether a trader wants to use EA or not an EA, the same goal is to choose a good quality forex broker such as: low spread, execution speed, low cost and Metatrader 4 platform. Some forex platforms that I recommend you can consult:
Admiral Markets: www.admiralmarkets.com
HotForex: www.hotforex.com (should choose ECN account)
RoboForex: www.roboforex.com (should choose ECN account)
FXTM: www.fxtm.com (should choose ECN account)