Trading by the Forex Robot
Trading is an essential business which has seen many advancement over the time, yet today the technology allows trading to not be only done through computers and online but also through the introduction of algorithmic ways which in result can benefit forex trading (foreign exchange of currencies) through forex robots, which is a computer software that makes decisions itself about forex.
The use of such robot trading may rise your expectations of goals, however this is not to be expected of it as often. Robot trading offers realistic results, like the ones you see when you trade on your own. Hence, keeping a realistic goal would help you achieve it better. The percentage number of desired drawdowns and profits can be set on the lot settings.
Before you begin to think about this forum of trading, you need to choose between a fully automated version and a customized version which allows manual work to some extent, unlike the prior one. A latter version would require an online connection to the computer at all times to provide it with VPS. This buys you enough time for your own personal work without having to worry about it.
There are some sort of specific techniques that are used by the forex robots which include the following;
- Grid: it does not concern about the market trend yet proper and efficient use of this technique is able to balance most of the market conditions. However, it works poorly at times of news events and does not provide a good margin. The ratio of leverage needed for it mostly is 1:400.
- Martingale: it is able to produce amazing in a small amount of time however profit leverage needs to be high and it works poorly at time of news events.
- Scalping: this involves attracting multiple efficient trades where customization of the lot size is feasible for you. This is good for automated version since it is mostly more active at night time,
- Customized indicators: this allows you to manually control everything. An advantage includes that is does not require a VPS and is more feasible for the manual traders. It is also observed and is a fact that indicators are cost efficient when compared to Expert Advisor (EA), however, indicators demands time and enhanced learning skills to depict its ways faster.
Forex robots are an effective tool for efficient trade, if you do not plan on permanently getting it personally, it does however deserve a chance for you to experience and judge its efficiency.