Forex Trading Robot
A forex robot is a commonly use term to refer to algorithmic trading that takes place on the basis of a set of forex market signals. These signals come in handy to assess when one should buy or sell a currency pair. More often than not, these are fully automate systems that work in tandem with online forex brokers or exchange platforms.
All traders have the liberty to use trading robots and indicators for their daily trades. These are special applications for trading platforms and you do not need any particular knowledge or programming skills to be able to operate them. How can you get one of these forex robots? You may choose to download a free application for MetaTrader 4, or maybe even buy or rent one from the market. If you have the technical knowledge and inclination, you can develop a custom robot or indicator on MQL4 language by yourself.
Where to get a trading robot or an indicator?
Code Base
Code base is essentially a free source code library of robots and indicators that are a built-in feature of MetaTrader 4. You can choose from 2 000 indicators or 950 trading robots. The library even includes 300+ scripts which refer to small applications that let you automate one-time analytical trading functions.
Market
MetaTrader4 comes with the world’s largest collection of forex robot applications that are built into the platform. There are over thousands of free and paid indicators along with expert advisors. These advisors can be from well-known as well as novice developers and can be downloaded in just about a few clicks so you can start trading. There’s no need to exit your platform to use these features
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Every single Market application comes with a detailed description, screengrabs, and a free demo version so you can check it out using the Strategy Tester. This allows you to become familiar with the product and make an informed decision before you spend your money on it.
Features:
- Largest selection of trading applications in the world
- 1700+ trading forex robot and 2 100+ technical indicators that are classified by their type and popularity
- Special strategy tester to test demo versions on MetaTrader4
- A protected connection for secure payments
- A wide range of payment methods from bank cards, online transfers, and other popular payment systems
Freelance
This service is best suite to those who are unable to find the right application in Code Base or Market. Through Freelance, you can get a custom application from seasoned developers at a cost-effective rate and get a product that is tailor-made for your needs.
Freelance is absolutely safe. All relevant steps required right from placing an order to payments can be take within the service.
How to launch a new robot or an indicator?
- It is easy to buy an indicator. You could buy it via your MQL5.com account, or with the help of payment systems. All types of payment methods are accept on MetaTrader 4 Market. Choose the payment method which suits you best and the product you order will be download to your platform right away.
- Once the download is complete, the application will appear in the Market’s Purchased tab of the MetaTrader 4 Terminal window. Your product can be launch through this window and can be upgrad to the next version. You may even extend the rental period or purchase a version in case you have downloaded the free demo version.
How does a trading robot work?
Once you have identified the strategy you wish to use, you just need to program it into an expert advisor or take the help of a forex EA generator to create the expert advisor.
An advantage of working with EA builders is that there is no need for any programming skills or other technical skills. Most expert advisors work on the basis of technical analysis of the forex market’s behaviour and tend to work in the same style, regardless of the type of EA which a trader has spent money or time on.
The expert advisor sends out buy and sell signals as and when the market conditions align with the programmed rules and parameters.
The technical parameters are in general adjustable and can be tweak to be in harmony with the ongoing market conditions, which could help in increasing the robot’s profitability.
Hence, a trading robot operates by sending out signals whenever the stipulated market factors as well as other trading conditions coincide.
While a majority of trading robots come with pre-set settings, you can change these settings on the basis of your risk appetite, capital available, and any other personal preferences.
Pros and cons of a robot
Advantages
Minimizing Emotions
Automated trading systems rule out emotions in the trading process. It is easy to stick to your trading plan if you are not making decisions based on emotions.
Back testing
Back testing uses trading rules on market data history to assess an idea’s viability. When you are giving structure to a system for automated trading, the rules cannot be ambiguous and open to interpretation. You need to give clear instructions and test those instructions before actually putting your money on it.
Order Entry Speed
Computers can quickly respond to changing market conditions and hence automated systems can generate orders whenever the criteria are match. The trade’s result can change dramatically if you enter or exit a couple of seconds earlier. Right when you enter a position, all other orders are generate on their own as do the stop losses and profit targets that are put in place to protect your funds.
Drawbacks
Mechanical Failures
In theory, automated trading seems like a cakewalk: get the software in order, program the rules, and start your trade. Here’s a reality check, automated trading is a high-end and complex trading method but it is not fool proof. Depending upon which trading platform you’re using, the trade may end up in your computer and not move to the server or it may not get process due to poor internet connection.
Monitoring
Automated trading systems need to be monitor so you can keep an eye out for technology failures like connectivity issues, power losses, or computer crashes.
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