After a long time in the development of the forex market, more traders strive for time-saving and constant profit getting at the same time. To achieve this, it can’t help but mention the impact of the automation trading model.
Maybe you heard somewhere or even tried the EA robot - the top solution when it comes to automation. No matter if you have tried it, let’s take an overview of the definition, what is forex trading bot to get closer to the whole picture about investment.
What Is Forex Trading Bot?
One way or another, whether the automation system you take from others or built by yourself, you would need to understand all their meaning. To get that, you are going to the answer for what forex trading bot is, mechanism and classification to get the deepest understanding.
Importance Of Trading Automation
Before moving to the definition of the term “what is forex trading bot”, we need to know why the importance of trading automation is getting more recognition nowadays.
In any field of investment, traders need to accomplish the full skillset inside out, including effective trading systems, consistent psychology, a realistic strategy, etc. However, it is not always that traders are in their best position in the long term and this is what causes the losses directly or indirectly.
With trading robots, all the limitations seem to be completely improved by elaborately programmed software systems to make trading orders.
What Is Forex Trading Bot?
To reach the demand for trading automation, developers made programs that run on MetaQuote 4 and MetaQuotes 5 (MT4 and MT5) using the MetaQuotes Language 5 (MQL5) programming language. These products are the answer to the question: what is forex trading bot?
According to some analysts, trading robots and expert advisors (EAs) have little difference in the way they work. While expert advisors just bring the order advice, price warnings and let users make their own decisions, trading robots would complete the buying and selling, profit-taking for traders.
However, due to the same algorithmic trading method usage, the trader community considers no difference between robots and expert advisors when using and applying trading conditions.
When it comes to what forex trading bot is, traders are referring to the software that helps execute trades automatically based on available preset conditions. Those conditions are according to the trader's needs and strategy. In the working time of robots, investors can continue to do daily tasks and turn back to check in other times.
In addition to answering for what is forex trading robot, to be able to start running, a robot needs to meet 2 following criteria before being integrated on MT4 or MT5:
Algorithm: This is the sequence of code developed by programmers to build the features, a list condition that can be integrated, working principles for them to run transactions which meet the conditions.
Condition: Includes all the strategies that traders built thanks to their basic and advanced technical analysis. As long as the condition was set into the algorithm, traders can input their conditional data and let the robot work.
From there, it can be said that a good trading robot asks you to know clearly what forex trading bot is and more importantly, it needs a well-programmed system and a user's proper strategy.
Depending on comparative criteria, there are many ways to classify the EA trading robot. In explaining what forex trading bot is, looking at some of these purposes also helps users understand more clearly their characteristics.
Hedge Expert Advisor
Open 2 opposing positions and observe the profits, the position with the higher profit will be kept and open the same orders. Otherwise, the lower position will be closed. This is a simple robot EA that doesn't do market or news analysis, so it doesn't make too many breakouts.
News Expert Advisor
Act on financial news and take advantage of market fluctuations to signal traders to price changes.
Breakout Expert Advisor
This type of robot EA will open before the support and resistance range, based on that analysis to decide the trades. When the price zone is broken, the robot will open another correlated position.
Scalper Expert Advisor
This is the type of trading robot most commonly used by traders. It executes consecutive small and short-term orders, profits are accumulated from many small interest rates.
Things To Do With EA To Reach The Highest Profit
After getting the term what forex trading bot is, investors also need to track these popular related bits of advice to minimize the risk and increase the profit.
1. First Use With A Demo Account
Whether you know clearly what forex trading EA robot is or not, use the paid or free robot, all investors are recommended to integrate them on the real market by a demo account within 3 to 6 months. This is not only for testing the profitable capability but also a way to observe and get experience to input the condition by the time the robot officially runs.
2. Always Setting Up Stop Loss
The volatility and news in the economy always can knock out analysis theory. Therefore, even if you carefully set up the strategy, being cautious is the best way to prevent losses.
3. Choose The Reliable Broker
Evaluating a trading robot depends pretty much on the development team because once they understand what is forex trading bot, the brokers are ready to choose and invest in a good programming team.
Where To Buy A Trading Bot?
In high demand, the forex market applies various options with automatic trading types. Up to the level of experience that you can consider one of these ways to own a trading robot.
Get Paid To EA Trading Bot
Currently, there are thousands of EA trading robot service providers with prices ranging from a few hundred USD to over 5000 USD. You can easily download it on the MQL5 website or fixloaded.com.
Use The Free Trading Bot
If you are still concerned about what forex EA trading robots are or are not sure about their effectiveness, you can try the free EAs shared from all over the trading community. In turn, you need to spend more time experimenting and researching to find the right trading robot.
Self-Create Trading Robot
The method is rare because it is not easy. Creating a robot yourself requires investors to master both financial and technological knowledge. In addition to understanding what a forex EA trading robot is, the coding requirement is one of the most common obstacles when traders need to find an EA.
However, with the need to design a trading bot for themselves, today there is a way for traders to have their own custom-designed robot without knowing the code or thoroughly understanding what forex trading bot is. FXCE Giga is one of those products.
Developed to be user-friendly, simple and convenient, trading strategies are systematized into easy options for traders to make automated trading quick and efficient.
Hopefully, you all got yourself the right definition of what forex trading bot is and know more useful information about this type of trading. For any questions or intend to join, don’t hesitate to contact us:
Contact for supporting EA configuration: https://t.me/fxceea.
Join FXCE community about Social Trading Platform Vietnam: https://t.me/fxceSTP_VN.