If an individual of the forex goals to the year is always to work with an expert advisor or perhaps a trading robot, then let me help you out by outlining the main advantages as a result. Let me remind you though until this trading strategy needs a extra knowledge, experience, and research so make sure you research your options prior to running an EA.
1. It can trade as you sleep!
Even though the currency markets is open Twenty-four hours a day, humans like you can’t possibly stay awake all day and night through the entire trading week simply to keep track of price action without interruption. Well, that could be doable with copious numbers of coffee as well as energy drinks, however that ain’t healthy at all!
A forex automatic trading program, on the other hand, could be developed to watch market movements with no need to rest or even take pee breaks. It follows some rules determined by technical indicators or price action and will execute trades automatically. For several forex traders who’d prefer to make money from market movements within a particular trading session but they are stuck inside a different time zone, employing an forex trading ensures that they don’t need to worry about trading sleep for pips.
2. It isn’t prone to emotions.
Every trader around has probably grappled with either greed or the fear of losing eventually. Human emotions can cloud decision-making sometimes which enable it to lead a trader to deviate from a tried-and-tested strategy.
What sets trading robots aside from human forex traders is always that we don’t have any emotional components whatsoever. Expert advisors are wired that you follow system commands and take valid trade signals, without feeling pain from losses or joy from wins.
3. You are able to run backtests quickly.
An additional of needing an expert advisor may be the ease of conducting backtests by using an electronic trading platform.
4. It reacts to quick market movements instantly.
While humans take a couple of seconds or longer to digest market information and discover how to answer price movements, a forex automatic trading program can react instantly and execute a trade quicker than a blink of the eye. This could be beneficial for day traders who will be looking to profit from quick price moves based on 1-minute or 5-minute charts.
Expert advisors may also book profits or cut losses without second-guessing. As Dr. Pipslow often discusses in his Pipsychology articles, careful analysis exit early can often be challenging to make, as it could involve either leaving profits on the table or realizing small losses.
5. It isn’t prone to human error.
Aside from having emotions restrict making trading decisions, being human also entails making mistakes. This could be in the form of making wrong calculations in position-sizing (gasp) or entering an extra zero in the trade lot size (double gasp) – errors that can be avoided when working with a forex automatic trading program.
For additional information about forex view our webpage