Automated forex trading is often misunderstood: some traders see it as a 100% profit guarantee, others are skeptical. However, trading robots (EA) are not just for professionals. Beginners can use automatic trading systems for a better understanding of the market. This guide shows you how it works.
Automated forex trading and trading robots
Automated trading is a generic term that can be used flexibly. However, there is much more behind this term:
- trading forex robot
- Expert Advisors or Expert Advisor in English (EA)
Automatic trading systems and Expert Advisors, are designed in a very complex way by experienced traders and computer experts. They are based on extensive algorithms which are used to analyze the complex market. Trends and trading processes as we know them from freely available CFD indicators are taken into account. This is to provide traders with accurate signals that can be used to make automatic trades with a high probability of winning. However, automatic trading systems can be wrong.
Automated forex trading can also be done using robots. The difference between these trading systems is the execution:
- Bots do, but EAs don’t.
- The robots perform the whole trading process independently according to the specifications of the traders.
Automated forex trading in practice: this is how it works
Many traders use automated trading signals for their activity in the forex market. They are generated by software running in the background, which scans the market. If you don’t want to, you can use many free indicators and MetaTrader 4 or MT5 indicators to generate trading signals yourself. The challenge is often too great for beginners, so they resort to automated trading signals due to a lack of practice and knowledge of the market.
Automated Trading Systems in Practice: Losses Should Be Avoided
Automated trading with robots saves time, but it also requires traders’ confidence in the right trading signals and chosen technique. The systems determine profitable currency pairs in the market. This is done according to the specifications of the trader, since the system only works with certain information. Based on this information, the robot checks the market and offers us interesting currency pairs.
If a promising trade in the market is recognized, it sends SELL or BUY information or starts trades automatically.
Automated Trading: That’s Why It’s Useful for Beginners
Automated trading systems can be particularly useful when you are new to trading. With trading signals and market analysis, those with little experience will be well supported by the systems.
The computer helps to:
- Act wisely and without emotions
- Analyze the market in depth
- Use provided signals to learn how to trade.
So to sum up, automatic trading with Forex robots can be a good way for all traders, especially beginners, to trade and learn how to do it themselves.
Did you like this article ? Share it with your friends with the buttons below.