One of the many tools that a foreign exchange trader requires is the use of “Expert Advisor Robots”. As most people who deal with forex are aware, FX trading is carried out mainly through forex brokerages and the platforms that those brokerages provide. On these platforms, you can set up multiple demo accounts and get the hang of what FX trade is really about. In addition, you can take the assistance of market indicators, trading tools and expert advisors. Trading tools are essentially the devices by which one is able to gauge the position and probable direction of a particular currency pair. Some of the most popular tools are: Fibonacci Retracement tool, Currency Converter tool, Rate History tool and a series of others.
Apart from tools and indicators, there is also the part which consists of “Expert Advisors”. These are essentially, what are known as internet ‘bots’ or robots. Their main function is to carry on trade in an automated fashion as the trader reclines and watches on. This is thus, a core part of the “automated forex trading system” that forms an essential ingredient of all currency trading activities which are done online. These robots, like the name suggests, act in a particular way according to their programming: they find profitable trades and execute ‘buy’ and ‘sell’ orders. They act by trading in suitable time frames for particular currency pairs. Since it is not possible for a human trader to be online all the time, from either his laptop or his phone/tablet, so what they do is, buy a robot and use it as a stand-in for the human for a particular amount of time.
There are numerous advantages that trading by robots can throw up: A robot is able to scan multiple time charts at the same time, can provide you with profitable trade solutions even when the market conditions are in bedlam. And, they are safe to trade with as they always trade within the range, and never go for time frames which are too risky. Because of the latter property of robots, it can be said that they always manage to make some profit of at least a few pips. In wildly unpredictable conditions, huge range widening might take place which have the potential of wiping out all profit that the robot might have had made. So, while it is a very useful tool, it is not really a substitute for human faculty intervention. Moreover, a robot’s acumen is only limited to looking out for a positive trend; while observing minute changes in rates, following major financial incidents around the world, calculated risk-taking etc. is not their forte. In this regard, it is advisable to use robots only in positive environments, and wean off them when the trade environment turns damp or risky.