Automated Forex trading robots bear little relation to animated androids who can trade currencies and profit day and night while regular traders sleep or golf. These computerised trading devices aren’t even computers. They’re just a bunch of computer code produced by geeks that lives on your computer’s Forex trading platform, as well as in the virtual realm of external hosting machines these days. Automated Forex robots lack the infallibility of an all-seeing, all-knowing, cool-calculating currency trading computer with a brain.
People evidently believe in fantasies and myths rather than the reality of life when the bankrupt State of California elects as Governor an actor whose greatest claim to fame was portraying an over-sized android exterminator war machine. The same might be said of Ronald Reagan’s election as President of the United States and Joseph Estrada’s election as President of the Philippines. Even if Arnie were a true android hulk capable of annihilating villains and machines, he would not be eligible for Princeton’s economics and finance degrees. How could a huge state of the union fill poor old Arnie with a Keynesian intellect? Even though the plot is absurd, people believe what they want to believe. Shouldn’t California call in Dirty Harry? People would nominate an actor who played a role in any comparable narrative movie if there was an actual alien invasion from outer space.
The truth is that Forex trading robots are not magicians, but rather ordinary people; plain old computer programmes rather than android-like machines. In the world of Forex, automatic trading robots still have a role. There isn’t a single professional Forex trader I know who doesn’t use one or more Forex trading robots to supplement their manual trading. Professional Forex traders currently rely on computer programmes that can calculate formulas and execute trading orders at breakneck speeds.
Forex trading was restricted to banks and huge enterprises before it became electronic and before the internet. You had to make a phone call if you wanted to buy or sell a currency. There was no such thing as an instant order execution unless you were Superman and could jump into a phone booth in a flash. Today’s Forex market is light years ahead of where it was little over two decades ago. Automated Forex trading robots have not yet progressed to the point of being infallible. Trading robots, like their human counterparts, cannot win every trade.
To some extent, markets are fickle and unpredictable. Computerized systems that model economic variables and continuously input data can analyse market conditions and generate high-probability trades. Trading robots can calculate the probabilities of winning with significantly greater accuracy than humans. Trading in the Forex markets with a machine is more faster and less emotional than trading manually. Human traders frequently make poor decisions and delay pressing the button due to emotion. A trader may have a strong opinion about market direction, but it will often vanish before they can muster the courage to place an order. When a target is identified, Forex trading robots have no trouble clicking the trigger.
However, Forex robots have a negative record in some circles, owing to beginner traders’ lack of understanding of the limitations of trading robots and how to best use them. Furthermore, the marketing hype that trading robots are financial salvation ensures that consumers will be dissatisfied with actual trading performance. Consumers encounter cognitive dissonance as a result of the emotional marketing rubbish peddled to the uneducated, uninformed, unskilled, and desperate.
Still, Forex trading robots are fantastic trading tools for the currency markets. In comparison to stock market trading, there are considerably less variables to input and the process is far simpler. As a result, market emulations can be rather accurate. A smart programme can simulate a variety of market scenarios and accurately place orders, including using stops and practising sound money management, such as not risking more on a transaction than the potential profit.
Professional Forex traders use Forex robots because computers calculate at such high speeds. Not because the robot’s decisions are superior to those of a human dealer. A beginner trader, on the other hand, is unlikely to produce better decisions than any of the best Forex robots. The most effective way to use Forex trading robots is to form a team, with each Forex robot adapted to a distinct market. It is necessary to have at least one for trend trading and one for range trading. When you buy your first Forex robot, don’t anticipate the Holy Grail, and don’t expect it to constantly win.
Risk and unpredictability are inherent in forex trading, whether done manually or by an automated Forex robot. You must design a successful trading method to become a successful Forex trader. Forex robots are exactly that. They’re an automated software with profitable trading strategies. They do not ensure success in all trades or market conditions. They do, however, allow for speedy calculation of high-probability trading opportunities as well as swift order execution. Forex robots aren’t Gods, and they nonetheless adhere to Lord GIGO’s old computing adage: garbage in, garbage out. Unfortunately, many Forex robot buyers overlook the waste disposal. But, as they say in Forex robot land, don’t throw the baby out with the bath water. Be patient, save your money, and don’t put all your eggs in one Forex robot basket.