There are basically 2 ways of trading the Forex market. One is the traditional way, in which you open a Forex account from a brokerage firm, deposit money into it and trade manually by using a computer. Typically, you monitor the currency price charts and the economic news before trying to predict your best probability of where the price is going up or down. You plan when you would enter the trade and when to exit.
The second way is you employ a software program to make the trading choice for you. This method makes trading much simpler and easier as compared to manual trading. This introduction of a software program to assist in your trading is known as Forex robot otherwise also known as Expert Advisor. What these programs do is they gather data, analyze them and able to automatically enter trades and close them for you. In simple term, the Forex robot trade for you. The great thing about automatic trading is that it helps you to save time. Many traders are using this technology nowdays around the world for their Forex trading.
Forex trading is a very lucrative market in which trillions of dollars are traded on a daily basis. This is why it is not a surprise that many people are doing it. It is one of the markets that still remained strong despite the economic crisis and recession that has affected many countries.
There are many benefits of using Forex robot but, in my opinion, there 5 key benefits:
1) Investing in robot in exchange for time. Forex robot help you to automate a significant portion of the trading time so that you need not stay in front of your computer the whole day look for right trading opportunities. Here, while the robot is trading on your behalf, you can do other stuffs.
2) The robot help to take over the some of the repetitive tasks from you like number crunching, data analysis, comparison of charts, etc. The expert advisor can do this faster and accurately than a human can because it is running on the computer.
3) The robots are not affected by emotion when come to trading, like greed and fear. Robots are not greedy at all as they are programmed to enter and exit trades according to setting. Example no greed of trying to push a winning trade for more pips. Same goes for fear, the robot will enter a trade with accuracy when all the signals are met. Meaning that there is no hesitation, the robot will trigger the trade immediately when the conditions are met.
4) They can work for you 24 hours a day without sleep or food. They are constantly looking out for the right trade opportunities for you. You also do not need to stay awake all night to trade as the robot will do this for you.
5) You need some basic Forex market understanding but do not need to have in depth knowledge. This is because the mathematical computation and trading instruction are already built into such robots. Here, all you have to do is to install and setup the software on your MT4 platform.
These are just a few of the benefits of using Forex robot. You can now see why more and more traders are using Forex robots in their trading. However, because of this reason there are many Forex robots out in the market and more are being developed every day. Note that not all Forex robots out in the market can make money. Most developer will claim that their robots are capable of trading with over 90% accuracy and with very low drawdown. But is this really true when come to live trading? Here, when shopping for Forex robot, it is recommended that you do your homework first. Example is to read reviews and run independent testing on the robot to see if the claims are true. Also, analyze the data to find out what adjustment setting on the robot work best.