Forex trading offers a heap of choices on you. You can trade using market makers or ECNs, you have a choice between brokers having MetaTrader platform and ctrader broker. Automated trading systems offer a volley of advantages to the traders who buy robots to take their place in moderated, ‘safe’ trading. They help in not only generating and executing profitable trades, but also in helping traders diversify their trading choices and returns. This is done when a trader manually trades one pair of currency (whose movements he finds it easier to predict) and employs robots in trading a pair which he personally finds difficult to deal with; and then it is a win-win situation for him. Having robots trade also provides him with the time to back test his thought-out strategies on previously existing conditions. This feature is available on quite a number of online forex trading platforms such as MetaTrader 4. Below are some of the finest reasons why one should consider trading with the help of robots:
Diversification of Trade: As said before, traders can carry out trade both manually and automatically, with separate currency pairs being assigned to him and the robots.
It is Safe: Robots are generally known to trade within the short range, therefore, there is no risk of human emotions such as greed or over-ambition taking over the deciding processes and making risky-wrought trades with far-reaching hopes.
Much More Trade is Generated: Robots, unlike humans, don’t have to stop and think before making a trade. They are programmed to identify positive conditions and suitable currency pairs and execute a trade. And, since they trade 24 hours a day and can study graphs and charts much faster than humans, they are able to generate a lot of profit in a short amount of time. They also have the ability to read multiple charts at the same time, something which is not possible for humans.
Back-Testing: Back-testing means testing the trading strategies on past conditions to see the way they react. The Rate History tool helps a trader to go back in time up to 365 days and study the usual behaviour of definite currency pairs in given situations and conditions. This helps the traders to get wiser about the behavioural tendencies of currencies. And, while the robot is executing automated trades, the broker can invest his time in back-testing his strategies to know when it would be appropriate to take a risk.
The Entry Order Speed is Improved: Robots, as said before, are much quicker and faster than humans. Therefore, they are able to respond quickly to a changing market condition and identify the favourable trading conditions. Once the condition has been found, the robot executes the trade immediately. Therefore, the chances of the targeted trade reaching the profit level or sliding down past the ‘stop loss’, even before the order is entered----are minimised.
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