Robot Trading

Forex trading is one of the most desired skill yet it poses so many challenges. Not only do you have to master your trading strategy and understanding, you have to master and control your human emotions and urges which is no easy task. The human element is the one which poses the most problems when it comes to trading and some have come to the conclusion that it is best to leave the trading up to a robot instead of doing the trading yourself.

Robot trading refers to coding a program with instructions on how and when to trade. In this program you list rules and stipulations that govern how the program will determine when to execute or end a trade. These robots remove the human element out of the picture when trading as the robot will not trade with human emotions. Of course it is implied that one must have a good understanding of programing and programing languages before you start, so a good programing background can be of use here. You must also be aware of the different indicators which will be used by your robot and how these indicators work together. You can go the long route of learning how to code yourself, or you can hire a programmer to write the code for you. There are some vendors out there who can sell you ready made trading robots as well, you just have to look for a reputable robot with good results.

You can either use the robot to trade for you without intervention from you the trader, or you can program a robot that helps you identify trading opportunities and manage your risk so you will still have to execute the trades yourself but the robot will perform some aspects of the trading process which you want done for you, e.g. risk management.

Whether you will be programing one yourself or purchasing a ready made robot, it is advisable that you find a broker which has small fixed spreads with exceptional execution speeds. To find such a broker I would recommend using WikiFx. This app scans the market for the best verified and regulated broker for your country. They also show you the type of accounts and trading environments each broker offers, allowing you to compare brokers and find the best one which is suited to your needs. WikiFx also shows you brokers which have been known to scam traders so that you stay clear of such brokers. So next time you are in the Market for a broker I recommend you use WikiFx.

Advantages of a trading robots

1. You can remove human emotions and error which often ruins your trading

2. You can leave the robot to trade on your behalf so even if you are away from the charts you can still catch trades

3. You can open multiple trades in an instant as opposed to go through the task of opening one trade at a time which takes longer. This includes closing trades sooner

4. It saves people mountains of time spent in front of the charts as you can install the robot and leave it to work on its own.

5. One can extensively back test the program use past data to ensure that the robot is working and it profitable

Disadvantages of Robot Trading

1. Requires extensive knowledge on coding and indicators

2. If programmed incorrectly it can cost you huge sums of money

3. Profitable trading robots often cost an arm and a leg

4. Trading conditions often change, so a trading robot which is profitable now may not be so profitable later

If you are a person who wants to enter the markets but also dont have the time trading robots may be a good idea. Purchasing a trading robot will most lightly cost the same as learning how to code or paying someone to code for you so it is best to look through the market in order to find the best robot with recorded reviews and shown trading results. Before trading the robot, it is advised that you first extensively back test the robot on historic data, on a demo, then finally on a live account with a very minimal investment so that you familiarize yourself with the robot.