Tips For Using Forex Trading Robots
The minus points above are the reason why not all traders apply forex trading robots. However, there are still many forex EA users and choose to use forex trading robots faithfully because they really need the benefits. Most of them consist of traders who already understand the mechanics of trading and forex strategies, but are less patient or don't have much time to set up trading setups manually. If you are that type of trader and can tolerate the shortcomings of a forex EA, then pay attention to the following important tips when you want to install a Forex Trading Robots:
Do a Forex Trading Robot Test
Whether it's just a demo account backtest or accompanied by a forward test, the forex trading robot testing stage is crucial and you shouldn't miss it. Like trying before buying, testing a forex EA can prevent you from making fatal mistakes that result in trading losses. Therefore, pay close attention to the performance of the forex trading robot by testing it yourself on a demo account.
Choose a Forex Broker That Supports
For several reasons, there are forex brokers who do not allow their clients to trade with forex EAs. Therefore, make sure that you have previously chosen the best forex broker in terms of strategic flexibility. A broker that allows its traders to use all strategies, including scalping, hedging, news trading, and automated trading with a forex EA can be an ideal choice.
Limit The Risk As Best As Possible
Even though the forex trading robot is set up so that it can always execute orders according to orders, there is still a risk of loss, be it from price patterns that move beyond expectations or errors from your own forex trading robot.
Carefully Follow The Instructions For Using The Forex EA
In running or changing settings, always pay attention to the instructions attached to the source of the forex trading robot maker. Aspects such as minimum deposit recommendations, lot sizes, pairs, and so on can be important considerations for optimizing the performance of forex trading robots.
Don't expect the lure of cash back from forex trading robot providers penned
Do you know? Some forex EA sellers add to the appeal of their products with a money-back guarantee within a certain period of time, for example for 60 days of use after installation. This is indeed tempting, but what you need to understand here is, only the money for purchasing the forex EA is included in the warranty.
Advantages of Forex Trading Robots
Due to the automated trading technology it is capable of presenting, the forex EA has the following advantages:
- Useful for traders who don't have much time to set up trading setups.
- No need to bother doing forex analysis for every entry or exit.
- Forex EA user traders usually don't need to struggle with the effects of fear, greed, or difficulty in making decisions, because every action has been carried out mechanically and automatically based on signals from the forex strategy that has been programmed in the forex trading robot system.
Disadvantages of Forex Trading Robots
At first glance, forex trading robots do provide a million benefits for all traders. But as the saying goes, no ivory is not cracked. Forex EAs also have weaknesses, including:- Forex EAs require maintenance fees. Using a forex trading robot can't be done with one-time payment upfront. There are subscription fees and other extra charges if you want to continue to get optimal results of forex trading robot performance.
- Forex EAs work non-stop and therefore require strong and active server support constantly. Personal computers are unable to cope with these demands, so a VPS (Virtual Private Server) is used to maximize the performance of the forex trading robot.