The average daily turnover of the Forex market is about three trillion dollars. You can think that there are really high chances to get huge profits. However, according to the statistic only 5 per cent of all Forex traders are able to make consistent and significant profit. It means that new traders without any knowledge of the Forex market will find it quite difficult to survive there. And it is where Forex robots come into a game. But, first of all, it is necessary to determine all the advantages and disadvantages of using these trading robots.
Disadvantages of Forex robots
– To perform properly, the Forex robot has to run on a computer round the clock.
– The majority of software work better on brokerage company that could offer currency pairs with tight spread. And thus it could not be suitable to run on every Forex trading account. As well it could limit your earning potential.
– The majority of the Forex trading robots are written specifically for one certain currency pair only, even if there are some that could run on multi-currency pair. The reason for that is because there is no single mathematical formula that works the best for every currency pair.
– Manual intervention of the robot when it is running could cause malfunction.
– The majority of the trading robots do not trade in days of high volatility.
– The trading robot does not have the data that are not programmable. And thus, the trader has to always look at the bigger picture, such important Forex fundamental data as political environment and economic news could affect the Forex market.
Advantages of the Forex robots
– Forex robots are able to trade for you round the clock without the need to sleep or eat.
– It is able to free up your time in order to do some other stuffs instead of monitoring the computer screen all the day long.
– The trading robot runs on a set of instructions. And as a result, there is no fear or greed involved.
– The majority of the Forex robots come with parameters that could be configured and fine tuned.
– The majority of the Forex robots do not need to have profound knowledge of the Forex market, however still some basic knowledge of the Forex market is needed.
– Today the majority of the Forex robot developers offer help and support as well as 60 days money back guarantee if you are not satisfied with the product.
– The Forex robot has a plan and is consistent in carrying it out.
– Some Forex robots can monitor several currency pairs at the same time and thus they offer you more opportunities compared to manual trading.
– In fact, automated trading is much easier because the trading robot is taken over most of the tasks of the manual trader does.
As in every other niche of our life foreign exchange market needs some knowledge.
This does not imply that after reading even the top materials you will start making money, but this knowledge will save you from lots of dangers. And even if you decide to get the help of a forex managed account service, still you will be able to make a much wiser decision.
And some general tips – today the web technologies give you a really unique chance to choose exactly what you need at the best terms which are available on the market. Funny, but most of the people don’t use this chance. In real life it means that you must use all the tools of today to get the info that you need.
Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and join the discussion. All this will help you to create a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.
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