As the forex market is advancing by leaps and bounds, not all traders make the desired profits. There are many reasons why investors lose money, including objective reasons, maybe from the system, to subjective ones such as investor psychology.
Nowadays, there is an increase in the number of traders choosing forex trading bot (expert advisor robot) to prevent the causes of losses. While the demand is growing, the forex market appears to have more trading robots than ever that plays as an effective and time-saving solution.
If there are still doubts about the operational and analytical capabilities of this type of investing, let's find out the most general information about this financial technology product below.
Main Information Of The Forex Trading Bot
Forex trading bot aka EA robot, expert advisor and bot trader. Simply explained, this is software that allows users to execute single or many trading orders automatically.
Typically, the system is built through the MT4 or MT5 platform using the MQL4 or MQL5 programming languages. Based on the sequence of code from the programmers and the trader's input conditions, the EA robot will act like a real person performing the buying and selling.
Advantages Make Forex Trading Bot Popular
Compared with manual operation, bot traders have outstanding convenience thanks to the removal of limitations commonly found in traditional trading:
The Ability To Trade Continuously
Unlike human-being investors, trading robots can be active 24 hours a day, so they will not miss any opportunities. You can take that time for resting and continue other work while still maintaining your investment thanks to the forex trading bot.
The robot also allows the main account to track and trade multiple currency pairs at the same time, providing more profitable opportunities than manual operation.
Remove The Psychological Factor
Based on the rules that have been established by the investor for the first time, the forex trading bot will not be influenced or dominated by emotions such as being too greedy, fearful or biased towards any currency. As a result, the robot will react to opportunities better and quickly cut losses right at the first signs.
In addition, based on trading history or backtest, traders can adjust their risk appetite and assess conditions objectively to make the robot more optimal over time.
Prevent Technical Errors
In the process of calculating the Volume or Stoploss parameters’ order, the mistake will cause great damage to your wallet. Besides, there may be manipulation errors and input errors that cause the order not to match your demand.
These errors seem to be completely eliminated in automated trading systems thanks to their ability to execute accurately based on data.
Who Should Use The Forex Trading Bot
After considering the advantages that trading robots have, we must have imagined which type of people is suitable for this type of trading.
Traders, who have invested in this market for a while, are relatively proficient in basic operations and knowledge but have not yet obtained the desired return can look to trading robots as a new experiment.
At the same time, some EA trading robots have condition patterns available, which is also an opportunity for investors to learn and gain more experience for themselves.
Those Who Are Not Full-Time Traders
If your working conditions do not allow sitting for hours in front of a computer screen to watch charts to make orders, the forex trading bot will be a great alternative to help you do this. Furthermore, this is the ideal solution to create passive income for you to focus on other jobs to make an increase in your budget.
People Who Should Not Use Forex Trading Bot
Despite the many conveniences of passive trading, the robot EA might become a “trial by fire” to some users.
Lack Of Basic Knowledge
Make sure you deeply understand the meaning of forex trading and master the basic trading operations before using the forex trading bot.
Basically, mastering the knowledge of indicators, patterns, moving averages, trendlines, candlestick charts, etc. will help you set up the exact conditions for the robot to work. Even though it is an automatic transaction, the robot still needs the control of the trader in many cases where it is necessary to adjust conditions or other trading errors.
People Who Have Small Capital
For those who are just starting the forex journey or have small capital, the ideal advice is to focus on using simple trading orders and some of certain currency pairs. Relying on forex trading bot for passive income will slow down your process of scaling up the asset.
However, it should be noted that people with large capital should also start slowly and carefully with their investments. Please do a test before running with a larger amount of money.
Do You Need A Paid Trading Robot?
For the time being, there are many trading robots with various price ranges, from free to a thousand bucks. Paid trading bots will have many add-ons and services that provide different signals. You can easily find a wide selection of robot EAs from the market section of MQL5 for both MT4 and MT5.
However, you can still find free EA trading robots with very simple operations and still make a profit. FXCE Giga is one of them, which you can add to MT5 with a few simple steps.
After experiencing the free robot products, you would understand more about what needs to be added and find the right forex trading bot services.
Notes When Using Trading Robots
Besides the outstanding advantages of the forex trading bot, in order to get the best profit, traders need to pay attention to the following things so as not to use them ineffectively and affect the whole investment.
Do Not Abuse Trading Robots
Robots will be effective with certain currency pairs if they are built with the right conditions and indicators. After a while of taking profits, investors are too over-confident and often subjective when using the robot for too many other trading pairs without strict control.
Therefore, regularly update orders entering conditions and do not apply EA trading robots indiscriminately to avoid unexpected losses.
Aware The Boundary Between Knowledge And Reality
In addition to indicators and signs of charts, price movements need to be followed by market information and media. Relying only on backtest results too much can cause excessive expectations for investors. From there, traders may idealize too far from theories and apply complex formulas and algorithms to trading robots that are not realistic.
Choose A Reputable Supplier
A good forex trading bot is the one that is regularly updated, fixes system errors and added with the latest innovations suitable for the market. To catch this one, users need to find products from reputable developers.
FXCE Giga products are developed and researched for the needs of automating transactions with features that are simple even for those who don't know how to code. Besides, FXCE also provides 1-on-1 Support for questions from users completely free of charge.
In addition, traders can integrate their indicators through the help of Dev Team. Check out and experience the latest version of FXCE Giga here.