If someone of your respective forex goals for the year is usually to work with an ea or perhaps a trading robot, then permit me to help you along by outlining the main advantages in doing so. Permit me to remind you though until this trading strategy needs a little more knowledge, experience, and research so be sure you do your research prior to running an EA.
1. It might trade when you sleep!
Even though the foreign exchange market is open 24 hours a day, humans as you can’t possibly stay up all day and night through the entire trading week only to keep track of price action the whole time. Well, that could be doable with copious numbers of coffee and energy drinks, however that ain’t healthy whatsoever!
A forex trading program, alternatively, can be developed to watch market movements without the need to rest or even take pee breaks. It really follows a set of rules determined by technical indicators or price action and will execute trades automatically. For a number of forex traders who’d prefer to cash in on market movements within a particular trading session but they are stuck inside a different time zone, having an ea ensures that they don’t really need to worry about trading sleep for pips.
2. It’s not at all at risk of emotions.
Every currency trader on the market has probably grappled with either greed or the concern with losing eventually. Human emotions can cloud decision-making sometimes which enable it to lead an investor to deviate from a tried-and-tested strategy.
What sets trading robots aside from human forex traders is we don’t have any emotional components whatsoever. Expert advisors are wired to stick to system commands and take valid trade signals, without feeling pain from losses or joy from wins.
3. You can run backtests quickly.
An additional of needing an expert advisor is the easy conducting backtests on an electronic trading platform.
4. It reacts to quick market movements instantly.
While humans please take a matter of moments or longer to digest market information and work out how to reply to price movements, a forex robot can react instantly and execute a trade quicker than a blink of an eye. This could be good for day traders that are planning to cash in on quick price moves determined by 1-minute or 5-minute charts.
Expert advisors can also book profits or cut losses without second-guessing. As Dr. Pipslow often discusses in his Pipsychology articles, the decision to exit early is often hard to make, as it may involve either leaving profits available or realizing small losses.
5. It isn’t vulnerable to human error.
Aside from having emotions hinder making trading decisions, being human also entails making mistakes. This can be in the form of making wrong calculations in position-sizing (gasp) or entering a supplementary zero from the trade lot size (double gasp) – errors which can be avoided when you use a forex robot.
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