November 23, 2020

Forex Robots for effective trading

Forex Robots

Now more than half of transactions on all world commercial stock and currency markets are carried out with the help of automatic programs, which are also called “robots”. So what do you need to know about Forex Robots for effective trading?

What does “trading robot” mean?

The development of technologies that have spread to all spheres of human life, including trading, has also changed the way of trading on the stock exchange. Now it is not necessary for a trader to be present at the exchange. The robot will do all the work. How will it be? How can a robot make money? Immediately, a kind of humanoid mechanism, a robot that can compete with mankind, is presented. But such a representation exists in the imagination of fantasists.

A robot is a special computer algorithm invented and programmed by a human. The robot conducts automatic routine buy and sell on the market instead of the trader. Moreover, it even manages to earn. Trading robot programs first appeared in the United States in the 1990s. Trading with robots is also known as high-frequency trading. Thanks to modern equipment and special programs for automated high-frequency trading, a trader can make huge profits in Forex. The only question is how such a robot works and how to find a program for automatic buying and selling.

Forex trading robots – how do they work?

Trading robots are of two types. The first robots give recommendations to the trader about purchase or sale of commercial assets. Such programs can study and analyze giant layers of information in Forex in a split second. Then, the robots send signals to the trader about possible deals. After receiving the signal from the robot, the trader must personally make a decision about buying or selling.

Forex robots of the second type also study the information, analyze it, taking into account risk management, and then begin to trade in the market without participation of the trader. Programs for automated forex trading are called advisors, experts, mechanical trading systems, trading robots, technical indicators. With high-frequency trading bots, they conduct short-term transactions. In this case, the volume of transactions can be very large, but the profit is small. Often, the profitability of each transaction is not higher than the share of a cent for a security.

That is why Forex brokerage companies specializing in high-frequency trading with a robot do not require much capital from traders and prefer to conduct short-term buying and selling on Forex during the day. 

Leave a Reply

Your email address will not be published. Required fields are marked *