Advisors in the currency market work according to a simple algorithm principles. If the conditions are met, the program initiates the opening of the transaction. After the expiration of time, under other conditions already, the robot closes the warrants and records the profit or loss. The trading algorithm for an advisor can only be based on a formalized trading system with clear rules.
Strategies with necessity to analyze the expidiency of entering the market manually are not amentable to automation. These include, for example, graphical analysis or Price Action system.
In the first case it is necessary not only to identify the figure, but also to see where it has appeared and to estimate the strength of the signal. The advisor can’t handle with that. The same situation applies to trading on Forex with the Price Action strategy robot. If the program can still identify the candle pattern on the chart of the currency pair somehow, it is unable to estimate its strength and location relative to the nearest support or resistance levels.
Indicator trading strategies are suitable for automated Forex trading robots , as the conditions for opening a deal can be recorded in an algorithmic language. For example, we open a purchase order, if the two moving averages intersect and the bar graph of the MACD indicator is above the zero mark.
Trader doesn't need to sit at PC and wait for a signal when he use a trading Forex robot. The advisor will independently open the warrant if there is a signal and will independently close the transaction when necessary. Trader is only enough to watch the situation occasionally.
The trader is stressed in manual trading. This can lead to consequences like an unreasonable market entry, closing of transactions ahead of time, transfer of stop losses, etc. In Forex robot trading, such situations are excluded. Advisors do not experience emotions and trade according to a clearly defined algorithm.
For a trading robot, there 's no difference when to open deals. Automatic trading of advisors on Forex is the best solution if the trading strategy involves opening deals, for example, at night.
The advisor does not have his own intelligence and it can be the main drawback of Forex robot trading. Automatic trading will only be profitable if the trading algorithm that underpins the advisor is profitable.
Most free and paid trading robots can only trade profitably over “short distances”. The most aggressive on them can dump money in 1-2 months. The best way to trade advisors is to develop a manual trading strategy in-house and automate it. Ready-made algorithms in advisors, which are distributed on the Network, usually do not live up to expectations.
Note that trading on Forex with the help of a robot is not suitable for absolute beginners who have only started on the foreign exchange market. Automatic trading is designed for more experienced traders who understand how the market is arranged and what processes are taking place on it.
However, both experienced and beginners will benefit from advice on working with Forex robots:
Trading advisors on Forex is just a way to automate manual work in the currency market. The Forex advisor does not make trade decisions on his own, so the leading role in trade on Forex does remain with the trader.
I have been trading Forex for more than 5 years, mostly with manual and automatic trading. I set up advisors for round-the-clock automated trading. I'm sure I can help to establish your trading skills....