Find Out What are the Advantages and Disadvantages of Trading Robot / EA
Being a trader in the present is getting simplified with the various technological advances that are available. As a trader, you can trade more easily through the help of Expert Advisor (EA) or trading robot. With the existence of a trading robot, you no longer need to trade manually, because you can submit the trading business to the robot trading.
When you use this way, trading can be done automatically and it means that this ease is perfect for you who are busy and do not have time to observe the market movement.
From the above brief explanation you may think is very tempting to use a trading robot as a means of making a profit.
But is that so?
Understanding the Pros and Cons of Trading Robots Before Using It
When you use manual trading, there is flexibility that allows you to trade independently and you are required to observe daily market movements.
When you see an error in a position that has been opened, then it can be corrected to avoid continuous losses. Likewise when you see a profitable trading position, then the profit opportunities obtained can be enlarged. Many traders prefer to use manual methods because they consider that forex is a complicated activity and trading manually is the best way to do it.
In addition to the above, when you are trading manually, then you need to pay attention to the psychological side, emotions, and greedy attitude that is in human beings. If you do not pay attention to these three factors in manual trading, then it will enlarge you to lose.
What about trading robots?
Unlike manual trading, because trading using a robot relies on a tool, the system will automatically execute when a position has entered into the criteria.
Seeing the above makes trading using a robot is not in accordance with volatile market conditions and fluctuate. You could have gained the joy of trading using a robot, but very rarely can you get a win consistently.
What Do Beginners Do?
Seeing the above convenience, do not make you a beginner and just learning trading start thinking to use a trading robot. If you do not know the basic logic in trading, then the use of robots is not recommended.
In addition to designing robots that fit the trading system, you need funds that are not small. As a beginner, you’ll want to learn trading in a manual way. The process that you live by trading manually will make you generate hours of flying and a very valuable experience.
What is an expert advisor?
Expert Advisor or EA is a tool that allows to work automatically, so it can do open buy or open sell on the existing forex market. This automated trading software can be activated immediately without the need to give orders to buy and sell a currency pair.
There are several forex brokers who provide trading robot facilities on the platform that is InstaForex, GainScope, FBS, and so forth.
EA software can be activated by using trading software MT4 or Meta Trader with Expert Advisor function. The system will be directly related to each market price data and run interactively. The installed software can respond to price movements in the market and will execute automatically. With this convenience, the above system allows you to automatically open incoming and outgoing positions without the need to intervene directly.
Why Do Many People Like Using EA?
The use of trading robots is perfect for those of you who trade as a side job and do not have much time to keep an eye on market price movements. Trading robot allows you to keep doing other activities such as working in the office and the robot will replace you for the move in the forex market.
As a trader, you also do not need to take a lot of time in trading activities. The thing you need to do is provide a minute to analyze the existing trading methods.
You will also be facilitated by trading robots to gain profit in forex trading, without the hassle of doing analysis in trading. The existence of trading system makes you no longer need to mess with the analysis of forex manually and inconveniently. The thing you need to do is analyze the system you have created.
Despite having some advantages that are very profitable, as a trader, you are also required to know the basis of forex analysis well.
When using a trading robot, you will also follow a rigid and inflexible system. As a trader, you can not decide when the best time to open and close an existing position. A trading robot that will do everything for you and it is included in the system that has been run on the software.
Using a trading robot also requires a lot of cost and you need to pay for each transaction made. For those of you who have a lot of capital, of course things like this do not matter. But for those of you who are newbies and have limitations in terms of capital, then use a robot trading is not we recommend to do.
Trading automatically using a trading robot does make you easier with a job that becomes lighter. Jobs like analyzing and predicting market prices no longer need you to do, because the robot can do it for you all. So that trading robot is perfect for you who do not have much free time to trade directly.
Things that beginners do not realize are trading automatically will make you untrained to do market analysis and predict prices in the market. So you do not get enough experience to trade in the real forex market.
Thus, you should trade manually and learn to predict the existing market and open positions based on in-depth analysis. The experience you get when trading manually can not be replaced with trading done automatically.
We hope the information presented above can provide many benefits to all of you who have read. If you still have questions related to the topics discussed above, feel free to ask through the comments field below. We will be happy to answer any incoming questions.