Is Robotrade Trading justified in the foreign exchange market?
According to statistics, to date, in the currency trading involved a number of automatic trading systems and trading robots, that about 45 percent of all trading operations on major currency exchanges are made precisely with the use of robot-trading. How justified is their use of such a statistical picture. But it is necessary to look and facts in person.
The use of trade advisors in some part solves the problem of market volatility and volatility. In addition, the profitability of automatic trading is indisputable. However, in automatic trading there are not entirely positive sides. For example, the same mobility of the market robots just knocked out. The volatility of the market is largely dictated by the increased functionality of automatic trading systems. There are also some doubts about obtaining multiple profitable orders. Often, advisers also merge deposits, and often – to zero. Taking into account the relevance of the issue with the use of automatic telephone exchanges, we must try to understand the prospects of their use and draw the appropriate conclusions.
Typical varieties of automatic systems
To begin with, it is necessary to determine which methods of trading are used with automatic trading robots. They are accepted classify according to the principle of action. One of the groups is the kind of robots that conduct independent trade. This is the most promising group, which is fully capable of freeing the trader from the need for analysis and conclusion of orders. All calculations are made on the basis of technical analysis data; sometimes, the algorithm for determining the trend includes data from economic analysis. Having determined the direction of the trend and the resistance levels, such a trade advisor independently includes an order. Once the transaction becomes active, the robot continues to make further calculations. What is remarkable in this type of robot-trading is that the automatic system is able to keep a record and control over the deposit account. And the inclusion of the next order will be suspended until one of the previous positions is closed.
The next type is advisors who, based on the analysis done, give a signal that recommends the trader the inclusion of one or another position. In this category, robots are divided into two types – trend and those that signal directly in the terminal window. The first category sets the signs on the price chart, indicating a decrease or increase in quotations. The second group on the panel specially displayed in the terminal makes a direct recommendation for the opening of positions. This not only indicates the direction of the trend, but also the possible levels of take-profit and stop-loss. All these data are indicated not by conventional symbols, as in the case of trend advisors, but directly with the help of commands and price values.
Reasons for using automatic telephone exchanges
To understand the reasons why an increasing number of traders consider it possible to use automatic robots in trading, it is necessary to remember that it is a question of the currency market. Forex has those characteristics that are unique to this market. There are at least two distinctive features of this market: high profitability and incredibly dynamic volatility. All that is associated with these two parameters and is the cause of the use of automatic telephone exchanges.
The introduction of currency trading allowed to multiply the profitability of transactions. This is quite natural, because it is much easier for a robot to forecast the market and decide on a profitable conclusion of a deal. Whatever one may say, the computer program is much more effective than the human brain. And quite natural desire of traders to get more profit stimulates their aspiration to use robototrading in their practice.
In addition, the psychological factor plays an important role in making a decision regarding the use of automatic systems. Each trader, one way or another, is inclined to feel fatigue, lack of sleep, depression or exaggeration. And each of the traders is well acquainted with the statement that in this state to start trading, at least – short-sighted. In such cases, robot trading is an excellent alternative. The emotional factor is not inherent in the automatic program, whose algorithm of action is set exclusively for calculating the trend and conducting transactions.
How profitable are the advisers?
Ensuring the profitability of trading robots is due to those software algorithms that are laid in the trade advisors when they are written by programmers. And this is a guarantee of more profitable trades than in manual trading. The robot is not subject to emotional influence, and no matter what changes in price occur in the currency market at the time of analysis, the adviser will never become distracted by the increased volatility of the market, sudden changes in the direction of the trend and other moments. As a rule, a trader has such a volatility may cause doubts or a desire to quickly open another order. In this case, important milestones registered in the trading strategy may be overlooked. ATS is characterized by strict adherence to the order of operation and compliance with the control over the state of the deposit.
Difficulties in automatic trading.
Despite all the advantages of automatic trading, there are also negative situations, which can sometimes deprive the trader of part of the deposit. For example, the trade advisor is not always written professionally. Or the programmer who created the trading robot does not fully know the subtleties of currency trading. Naturally, such an imperfection of the program can lead to a failure in quality work.
Another drawback is that not all robots take into account man management. And so transactions can be opened as long as the content of funds in the account is allowed. But with the next deep correction all the means can be lost.
Well, the main drawback of all trading automatic systems is that they are able to function only when the computer is turned on and the Internet is connected. Otherwise, the robot may not take into account all the features of the previous transactions and do not take into account their expiration and the deadline for completion of trades. This can also lead to undesirable consequences.
So, we have considered all aspects of the question of the application of automatic systems in trading. Naturally, the decision should be made by everyone independently, but do not forget that in forex all methods are good if they bring the desired result. The training course on automatic trading on the platform ZULU Treider in video format.