Automated trading opens up opportunities for traders to earn in the financial markets in a passive mode. Not only brokerage companies, but also specialized services provide services for acquiring robots and connecting them to trading terminals. Automated methods have varieties, features, specific features and differ in characteristics.
In trading for making money in the stock market or Forex, there are trading robots, signals, auto experts, expert advisors, methods of copying transactions and much more. What automated programs are, how they differ from each other, what profit traders can earn, about the existence of financial risks when using them, about the choice of the Forex robot and feedback about them, the reader will learn from this article.
Automated Forex Trading
Any person who has decided to make money on Forex should undergo specialized training. It should be noted right away that this is a rather lengthy process and includes the following “trading disciplines”:
- Fundamentals of financial market terminology.
- Patterns and rules of trade.
- Money Management or Fundamentals of Money Management.
- Forecasting market quotes.
- Psychology of trading in general and trader in particular.
- The study of trading methods and strategies.
- Tools, assets and more.
Basic training is only a theoretical part, followed by mandatory practice in a special demo account. The demo version allows the beginner to get the first trading skills, actually get acquainted with all the trading tools, or at least most of them, test and work out the chosen strategy. As soon as a beginner starts receiving positive and stable statistics on a demo account, he can go to the real market to earn money, that is, replenish his deposit and start trading on his own.
Usually, the practical part takes at least two to three months, and the basic course depends on the time taken by the trader to study it. Many brokerage companies offer clients offline, that is, in the office, to undergo free training. Unfortunately, such courses are very superficial, which is not surprising, since it is impossible to understand the basics of trading in three theoretical and seven practical classes. Therefore, many newcomers who do not want to waste time learning, prefer to use trading robots for Forex trading in reviews that give them positive results and allow them to earn money in the foreign exchange market.
Positive characteristics of trading robots
What are the benefits of automated programs? Reviews of traders about trading robots for Forex, as mentioned above, are rather contradictory and each speculator independently decides whether to use them in their work or not.
Pros of robots:
- Full automation. They do not need to be controlled, they independently open and close orders, and the speculator receives only profit or loss, which is not excluded, since the risks in the financial markets are always very large.
- No need to have deep knowledge in trading. Any beginner can use them in their work. To do this, simply open a trading account with a brokerage company, replenish deposit funds and install an automated adviser, expert or robot on the chart. He will trade independently, and the speculator will receive income.
- When using the Forex trading robot, according to traders, there is no need to spend time forecasting changes in market quotes and studying analytical and statistical data.
- Passive income that occurs without the participation of a trader.
It is important to understand that the Grail does not exist in financial markets and therefore it is impossible to obtain results with 100% profitability only. Periodically, when using trading robots, negative transactions occur. An automated program is considered profitable only if there are more positive results than unprofitable positions, which are measured in the number of points earned.
Negative properties
Negative reviews about robots for Forex trading are justified by many factors. Most often, traders highlight the following points:
- The number of losing trades is greater in comparison with profitable positions.
- Incorrect settings and choice of parameters for automated programs.
- The use of trading robots without taking into account the market situation.
Each automated program is based on some kind of algorithmic calculations, most often indicators of technical indicators. Any trading robot is developed on the basis of any strategy. As you know, in trading at different times the state of market movement, appropriate techniques are applied, depending on the phase in which it is located.
For example, flat strategies are used for the consolidation zone, and trend techniques are used for impulsive movements. Therefore, if developers didn’t take these parameters into account, then, according to traders, the Forex trading robot will open unprofitable positions, since its algorithms use a technique that does not correspond to the market phase. As a result, the trading strategy underlying the robot will give false signals to enter the market, and, therefore, positions opened by the logarithms of the program will cause trader losses.
Types of Automated Programs
Trading is a whole science and not every beginner can master it in a short time, while having a huge desire to make money at the moment on the financial market. Therefore, novice traders use automated programs in trading, which are of several types:
- Forex advisors, experts and robots, reviews of which are very controversial and in the future, these points will be analyzed.
- Copying deals. A passive mode of income that occurs when a trader connects to the trading account of a successful managing leader. Usually a paid subscription is issued and all transactions put up by a professional are automatically copied to the beginner’s terminal, where both their opening and closing of the position takes place. As a result, the trader does not have to engage in trading on his own, but at the same time he receives income.
- Trading signals is a conditionally automated technique. The speculator with the help of SMS messages or e-mail, depends on the conditions chosen by him, receives points for entering the market. Signals can be configured on a specific trading asset and the time range on which the trader is trading. In the future, the speculator himself decides on the relevance of this information. In any case, he has to open a position on his own in the trading terminal, and the signal is only a ready-made analytical, often logarithmic, solution.
Robots for trading in a calm market
All automated programs can be conditionally divided into two types: flat expert advisors and trend trading robots. In the manual version of trading, the speculator independently conducts an analytical forecast of the market movement and identifies its phase. In the future, taking into account his condition, he uses exactly the strategy that is relevant.
A calm market is characterized by low volatility, all movements on it occur sluggishly and slowly. Any impulses, let alone trends, are completely absent, and therefore, when it is in this state, trading occurs in the lateral range.
During the consolidation zone, market quotes are fairly predictable. They move from the upper level to the lower limit of the range, that is, from resistance to support, and vice versa. Therefore, when choosing logarithmic calculations for a trading robot, these parameters and features of a calm market are always taken into account.
Robots with appropriate settings trade only in the range of market quotes set by the flat. However, if they are incorrectly set, the trader will immediately suffer a loss, since the program will not contain a way out of the calm state of the market and the beginning of the growth of momentum. As a result, due to a phase change and quotes being out of range, the transaction will be closed at Stop Loss, that is, with the help of a protective order that limits, but does not exclude, the trader’s losses.
The algorithm of the work of trend auto advisers
Unlike flat robots, trend automated programs behave differently. This is due to the peculiarity of the trading strategies laid down in their basis. The methods calculated for trading during impulses work on breakdown and rebound from the lateral movements formed in the calm market.
According to statistics, most of the time the financial market is in the consolidation zone, which is about 70%. Trends - this is the most coveted phase for any trader, as it is they that allow you to earn big profits. Naturally, only if the analytical forecast of the market movement was correctly carried out and the direction for opening the transaction was correctly selected.
Many trend advisors can work on the Martingale principle. That is, if one transaction was closed at a loss, then the second position opens with doubled lot size. Therefore, quite often, the use of trading robots requires a large deposit. This feature must be taken into account, because unlike the manual trading method, when the speculator has the opportunity to close a position at any time, an automated program can cause big losses.
Forex Robot Manhattan Fx
For clarity and understanding of how automated programs work, consider a few examples. According to customer reviews of the Forex robot Manhattan Fx, it seems that this is one of the leaders in innovative technologies for trading. It works with two types of the most popular and popular currency pairs among traders - EURUSD and GBPUSD. The robot is fully automated and brings profitability, tested by testing over 40% monthly.
But as traders note, the software has one significant drawback - it is paid and is not in the public domain. To install it on the trading floor, for downloading you will need to pay 169 US dollars, that is, after acquiring VIP access.
In addition to statistics, which you can immediately see about its algorithms, as noted by traders in their reviews, nothing is known, except that it was developed by a team of professional experts.
Forex Robot Reviews "Pulse"
This software is based on the algorithms of several technical indicators. According to reviews of the Forex robot Pulse, we can conclude that this program is not a fully automated option. Most trading robots do not require any intervention from the trader in the trading process. That is, all transactions are opened and closed without the intervention of speculators. Although the adviser does not have full automation, however, it is quite popular among traders, and not only among beginners, but even among professionals.
Basically, the reviews about the Forex trading robot Pulse are only positive. Traders note that although the program does not trade independently, it provides fairly accurate signals for opening positions, which is undoubtedly a very important indicator in trading. High profitability is achieved due to the successful and professional selection of technical indicators and scripts that underlie the program. Beginners leaving feedback on the Forex trading robot Pulse note not only accurate signals for opening transactions, but also simplicity in the software settings that can be changed.
Trading robot "Sniper"
This program is fully automated for trading. Unlike the Forex Robot Pulse, it not only provides entry points to the market, but also independently opens and closes positions. This software is excellent for trading in any time periods, including scalping strategies.
According to the Forex Robot reviews, Sniper works without the use of technical indicators based on logarithmic solutions. The fact is that the very methodology of Pavel Dmitriev, the founder of the strategy, does not use any specialized tools. It is based on an understanding of the laws of market movement, that is, zones of overbought and oversold assets. By default, you can use two correlating currency pairs.
And also traders note its peculiarity - the "safe" method, that is, partial profit closing. This robot has high rates of return and is considered one of the best and most popular automated programs for trading in financial markets.
Reviews about the robot from the Forex4you broker
Many brokerage companies offer automated trading services to their clients. For example, we can mention the Forex4you broker. Its developers have created an exclusive multi-currency robot, which is very popular among traders. According to reviews, "Forex Robot" "Fo Yu" works on the basis of complex algorithmic calculations and has good rates of return on transactions.
Of course, sometimes unpleasant moments happen when traders get losses. But this always happens due to 2 reasons:
- Technical problems or system crashes that are quickly resolved by experts.
- Lack of experience for beginners.
Quite often, novice speculators set the wrong settings or use the wrong deposit size in trading.
Conclusion
Professionals recommend that before choosing an automated methodology for trading, one should carefully study not only the parameters and characteristics of the program, but also reviews of the Forex trading robot, plus analyze statistical data with profitability indicators.
And you should also consider the size of your own deposit, since most advisers require a pretty impressive amount of money. In addition, you need to pay attention to what algorithms the software works on, whether Martingale is used, which significantly increases the load on the deposit, and the settings of the protective order.