Robot trading involves using an automated trading system to do your trades for you. The ability to fully automate trading has revolutionized the way people trade in the forex market as traders now have a choice between fully manual or fully automatic trading or they can choose to use a robot for trading to add to their manual forex trading activities.
Now before you go off thinking you don’t need to bother learning anything about the forex market when you can get it done so easily – wait. Using a forex robot can be advantageous but it does have a few glitches that you need to be mindful of.
First of all, while a robot can work by itself, it cannot do this unless you feed it the necessary information.
A robot works only in accordance with the information you feed it and within the parameters that you set. This means you need to know about forex trading so you can feed in the right information so your robot can make the right trades for you.
The big attraction with robot trading it that it allows massive amounts of market data to be analyzed thoroughly at the speed of lightning.
You can configure the robot any way you want. You can set the trade limits, the number and types of currencies you would like to trade, the stop loss entry points and all other trading factors so you in effect have final control. You can even input your long-term trading goals.
The software analyzes all of this information within seconds and directs the trades accordingly. It reads the market signals, processes the data and produces signals for you to act upon. This software, which automates the trading is your forex trading robot and the manner in which the trades are executed is known as robot trading.
Once you’ve set it up, the robot does it all by itself. It will keep trading for you 24 hour, 5 days a week. You do not have to intervene. In effect, a trading robot is a more consistent, less emotional version of a real person trading the market.
Considering profit margins can change every second in the forex market, using a robot to capitalize immediately on price changes can make a tremendous difference.
It can do quite a lot actually but be sure to read about the pros and cons of using a forex robot first so you can make an educated decision.
Provide trading alerts if you wish to trade manually but cannot be at the screen all the time. As
you can see, your forex robot can perform a lot of functions for you
but in order to make the most of these advantages you have to ensure
that your internet connection is always on. So you will want to ensure
that you have a dedicated permanent, reliable power source.
If this is something that you are considering or you need more information please feel free to contact me