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Are Robots the Secret to Making Money in Forex, and Do They Really Work?

Are Robots The Secret To Making Money In Forex, And Do They Really Work?

Can you be a successful forex trader by completely depending on a robot to identify trading opportunities and place trades on your behalf? It would be great to relax, watch your account grow while a smart algorithm discovers and places trades for you successfully. Many such algorithms or forex robots exist but do they really work? We examine this question and suggest that a semi-automated strategy is the best way to automate your trading and potentially maximize your profit.

Different types of forex robots

Forex robots are pieces of software that are designed to provide trading signals and automate trading decisions. The most widely used forex trading robots commonly operate on the MetaTrader platform and are known as “expert advisors”. While some forex robots place trades automatically, others provide detailed trading insights, leaving the trader to judge whether or not to place trades. Semi-automated trading robots offer the best of both worlds because they combine the analytical insights of using computer intelligence and also the benefits of using human judgment to decide whether to trade or not. This gives the trader more control and the result can be a better trading outcome.

Problems with fully automated robots

Totally depending on forex robots to identify trading opportunities and place trades on your behalf is not recommended. A minor issue with the MT4 trading platform or interface with the forex robot could cause significant problems that destroy your account. Unfortunately, there are no easy shortcuts to successful trading! Every trading strategy comes with a risk. Yes, a robot can analyze price movement faster than any human, but allowing the robot to take trades on your account can be very risky. It can be a big mistake to place your trading success completely in the hands of a computer program and algorithm.

A forex robot would be unaware of the potential impact of economic or political news, unlike a human who would be aware. A forex robot that is completely independent of human input to trade does not work as well as automated systems, which generate trading ideas and leave the final decisions in the trader’s hands. It is better to have the system identify trading opportunities while allowing you, the trader, to choose whether or not to manually enter them. This way, you maintain full control of your funds.

Benefits of semi-automated robots

Robot business concept market analysis graph,robot hand pressing computer keyboard enter
Image credit: sompong_tom / Adobe Stock

Our research shows that the best results are based on leveraging the analytical capability and advice provided by a robot, with the insight and experience of human intelligence. A semi-automated robot is perfect for this approach and enables traders to have the best information available to them while maintaining total control of their capital. For best results, you would want a system that automatically alerts you to every opportunity and then you manually validate them. This allows you to filter the trades with your trading instinct and identify the optimum opportunities. With a semi-automated robot, you can combine the intelligence and experience of a human trader with the analytical rigour of an automated system. Importantly, you will be able to maintain full control of your trading account.

Ideally, this kind of system will allow you to be ‘chart free’ and will send signals to you by email or MT4 push signals. This way you can always be informed of any potential trading opportunity. These types of system are fairly rare, but some high-quality systems are available. Whether you develop a semi-automated system yourself or use one developed by a professional, it is our belief that trading this way is the best way to achieve success in forex trading.

The best way to go

Sitting back and letting a fully automated system trade for you can be attractive but the risks far outweigh the benefits. To succeed in the Forex market as a trader, you still need to develop your trading skills and grow through practice. A good Forex robot can improve your learning curve and your trade decisions, although, it is not advisable to leave the fate of your trading success completely in the hands of a Forex robot.

Instead, semi-automated robots present a far more attractive trading strategy. These Forex robots scan the market for trading opportunities and propose trades for you. They do not place trades on your behalf. Instead, they leave you to choose whether to make the ultimate trading decisions. You take advantage of the advanced analysis provided by the algorithm and judge whether or not it is right to trade using human insights, your knowledge and experience about Forex trading. This way, you can make gains and still have full control of your account. Through semi-automated trading, you benefit from a robot’s detailed analysis of the markets but stay firmly in the driving seat with your account and capital.

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