A forex robot is software that generates trading signals and then automatically places real-time purchase and sell orders in your brokerage account. There are various ones to select from, as a search of "forex robot" on the internet will quickly reveal. Some robots may be programmed by a trader; others come preconfigured and can only be updated by the robot vendor. Research the offers carefully to ensure you buy a robot with the features you desire for your style of trading.
Speed
All forex robots are made to trade in real time. To do this, they must instantaneously recognize price changes for all monitored currencies, evaluate whether to issue an order and, if appropriate, place an order with your broker. Humans can't operate at the speed of a robot, and this makes human traders susceptible to price "slippage" - price changes occurring in the interim between signal generation and order execution. The issue escalates with the number of currencies traded. An excellent forex robot can real-time trade in a half-dozen currency pairs simultaneously, an impossible task for a trader.
Stealth
If you trade with a dealing desk broker - market makers who trade against their clients - you do not want to "tip your hand" in advance of your trades. This means you do not want to place limit or stop orders, because these tell your broker just how to manipulate prices to defeat your trading strategy. A limit order tells the broker at what price you will enter a position. A stop order specifies whenever a winning or losing position is going to be closed - through take-profit and stop-loss orders respectively. A forex robot can operate in "stealth mode": it enters orders automatically in real time as prices reach your entry or exit points. Your broker will have no advanced understanding of your upcoming trades and is thus denied a decisive advantage in the zero-sum battle for forex profits.
Discipline
Unlike humans, forex trading robots are neutral; they do not experience greed or fear. This is a decided advantage because humans can do a lot of damage to their bank accounts by trading emotionally. After experiencing a loss, some traders become gun-shy; others become gung-ho. But the best solution is to only sustain your composure and adhere to your trading strategy. There are traders who can successfully manage their emotions in stressful trading situations. If you are not one of them, a robot provides the discipline you lack.
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