Robots Trading and its pros and cons
Robots trading is not a new thing. These robots in trading are also called Expert Advisors. These are actually not robots. These are scripts that follow a guideline and insert auto orders and close them when market is in moving condition. They are helpful in that case when you are trading in volatile market. In volatile market or peak time of trading, it will be difficult to open and close trade on time. Specially when you are trading with scalping strategy or short term.
There are several robots trading available on different platforms. I will share only a few to make you understand what it actually is. The writer of the script or programmer make a program and give a line of action to these robots. These robots follow the rules written in their scripts. They execute orders on your behalf in any condition of market. The frequent open and close orders and in return trader make money. It is an easy way to trade in market, especially in forex market. The only difference is, you trade manually and expert advisors trade automatically.
There are some pros and cons of Robots trading, here I am telling you a few to understand them. If you are going to use any kind of expert advisors, please read this first.
Pros of Robots Trading:
- The execute the orders quickly without any delay in peak market.
- They don’t have any brain to fear of loss. These expert advisors just follow the rules written in their scripts.
- They don’t get tired, they keep working online, if your computer and meta trader is open.
- Most of the Forex brokers accept expert adviser to trade.
- Expert advisers are available in different strategies, some of them are free and some of them are paid.
- They are easy to use, by just a few clicks. You can stop them manually at any time.
Cons of Robots Trading:
- These expert advisors can not think themselves, they just follow a line written in their script. If the market changes its direction, they can not automatically change their preference. As a result of this situation, your account equity may drop to bottom.
- As a result of market fluctuation, they don’t stop themselves to secure the equity of account. They keep working, until manually stop them.
- It will be difficult for a trader to keep expert advisor working while his computer or laptop is shut down. Until unless trader use a VPN or VPS.
- Use of Robots Trading will not give any kind of manual experience to trader. Trader will only dependent upon the strategy feed in script of EA.
The above mentioned pros and cons are normal. Every trader should learn these things in demo accounts first. Every expert advisor looks good, but trader should know on which situation which expert advisors should be used. Robots trading is automatic but it is not fruitful for all the traders. Try to understand the use of expert advisor first and then use them on demo accounts. Once you understand the strategy of that expert advisor, you may go live with open market.
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