Forex robot

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What is Forex robot?

Forex trading robot is a program capable of performing in the terminal any action on the instructions of a trader without his direct participation.
This is automated forex trading system (ATS) also called a mechanical trading system (MTS), Forex Adviser, Forex expert, trading robot or in other words the program designed for fully autonomous, without human work in the Forex market.

The algorithm is incorporated into the program analysis of the situation on the currency market and if Forex Advisor find suitable situation on the market, it starts a deal.

How it works?

The program uses different data (every robot has its own algorithm and uses different indicators) and when situation on Forex is suitable for deal, robot automatically sends broker order to open a position. All you need just find a profitable robot (you can create your own or order someone to create a robot according to your trading system) install it to your trading platform, set it and let it trade.

Benefits of Forex robots

The main advantage of trading robots is a psychological factor. Robot has no emotions. Even the most professional trader is still a human, and may make a mistake at any time. Using of Forex Expert Advisor decreases the trader`s responsibility for the decision, and the trade itself becomes less stressful. The trader does not need to know technical and fundamental analysis because all the calculations already included in the program. Forex trading robot is able to handle the trading signals even in the absence of the trader.

Disadvantages of trading robots

Unfortunately all Forex robots along with the advantages, have serious shortcomings. The foreign exchange market, as well as the stock market or futures is constantly in motion and changing all the time, so the strategy that should be used for successful trading should also be changed. Automated trading systems are usually created for the specific situation in the forex and may fail and lead to a significant loss of the deposit, if the market situation changed dramatically.

How to create a Forex robot?

Forex trading is running through the trading terminals. Standard terminals for trading at the moment is a terminal MetaTrader4 and MetaTrader5. 90% of brokers use them for working with customers. Forex robots for MetaTrader4 are written in a programming language MQL4. This language was developed by the manufacturer of the terminal specifically for writing Forex robots. It allows without any difficulty to program a trading system that will trade online nonstop.

Indicators in Forex Robots (Expert Advisors)

For more effective operation of the robot you can create your own technical indicators. They will be a great addition to the existing indicators in the terminal MetaTrader4. The purpose of the use of indicators in the trading robots – to implement analytic functions and generate trading signals.

Testing of Forex trading robots

Before using the forex trading robot, it is necessary to test it on historical data. This can be done in the trading terminal MetaTrader in “testing”. This function is very useful, as it gives the opportunity to test the effectiveness of an automated trading system on historical data, thereby estimating the chances of earning
and possible shortcomings. In the “testing” You can also optimize the parameters of adviser and thus improve their performance.

There are a lot of forex robots in the Internet. Some of them are free, some cost too much. So you can choose. Anyway you should test the robot on history, before you use it on real deposit. Remember that some of forex robots can be profitable at one time frame and loose at other. A robot can be very effective with one currency pair and be completely helpless with other pair. So choose, test, try different settings and find your one. And remember that even the best forex robot is just your helper, always at least once a day control it.