The advantages and disadvantages of automatic forex trading robots or Expert Advisor

For a beginner in forex trading, surely he doesn't understand the name autopilot robot or trading robot or Expert Advisor (EA). When asked about this, they will most likely not be able to answer it.

Autotrading Robot or what is often called the Expert Advisor is an electronic device that works alone to look for opportunities to open positions (sell or buy). The Forex Trading Robot referred to here is not physical, but is just a software for forex trading automatically. 

Without you doing a Buy / Sell order, the robot will do it yourself for you. For more details about trading robots, you can read on the page: What is an EA or autopilot robot in trading forex?

Understanding of Expert Advisor is a computer program that has been designed to be able to trade forex automatically. So that the program can open transactions and close transactions independently without human intervention.

The robot is designed with complex algorithms and only supports certain trading platforms. Well, currently the most widely used platform for automated trading uses trading robots, namely the Meta Trader 4 platform (MT4).

When the Forex Trading Robot is run it needs a stable internet connection, and it must also be minimal from any interference with the device used. So, the best step to run an Expert Advisor is to use a Virtual Private Server (VPS) rock. Renting a VPS can be likened to you renting a hosting site on a server.

After you connect to the VPS, the display that is exactly the same as the display on our computer. We recommend that you choose one that uses a Windows operating system because Metatrader 4 is provided by most brokers running on Windows operating systems.

While the benefits that we get in using VPS, namely trading can be full online all day non-stop without any interruptions such as an internet connection is broken, the computer hangs, or other things such as lights off.

Why is a robot needed by a trader? Yes, because the robot can help a trader in trading activities. For example, if the trader is exhausted then the role for Open Position can be replaced by the robot or when the trader has a position and wants to close it but the situation is not possible then the robot can replace that role with the analysis system in the robot.

A successful trader must have his trading system according to his character. Well, this system is not suddenly owned by traders, but through experience and experimentation. Successful traders will run the system with high discipline regardless of the psychological factors they experience. Psychological factors are the closest and most important enemies in a trader.

When a trader involves emotions, lust will continue to increase profits and have feelings of revenge. So it can be said that it can waste money in just a few seconds.

When looking at existing data from various sources that only 10% of traders will succeed, while the other 90% of traders in the forex world fail.

For this reason trading robots are created to eliminate the psychological side when trading. Forex Trading Robots are only used as my trading tool (as the name implies) and only carry out something in accordance with the order only and where the plot is predetermined.

But not everyone wants to waste time learning forex. And they just want the shortcut, so they can quickly make money from forex. The trading robot is a solution that is taken and considered effective.

Because most Forex Trading Robot users are Beginner Traders who often experience a lot of losses during transactions on forex trading.

A Beginner Trader who often experiences loss, is usually very curious about forex trading, and they know about the potential contained in forex profits is very large, only when manual trading always experiences losses that they cannot avoid. Speaking of EA there will be many interesting things about it, especially when compared to manual trading. 

Expert Advisor is an electronic device that works alone to look for opportunities to open positions (sell or buy). The Forex Trading Robot referred to here is not physical, but is just a software for forex trading automatically. Without you doing a Buy / Sell order, the robot will do it yourself for you.


Advantages of Forex Trading Robots

First, let's start by discussing some of the advantages of Trading Robot which is the main reason why many traders stop trading themselves and replace using automated trading robots. Some of these reasons are:

Active all day for one week non-stop (always active when the forex market is active).

During connecting with VPS, Expert Advisor can work all day without stopping. So, once there is a trading opportunity, the Robot will always be ready to execute the order market, at any time. In other words, if you use the robot to help with trading, there is no need to worry about skipping trading opportunities even if you are busy with other activities or taking a break.

Not affected by emotions and lust.

Under any market conditions, Forex Trading Robots only execute instructions in accordance with programming standards, without emotional intervention. In that sense, EA will execute orders such as buy or sell and put Stop Loss and Take Profit exactly like the program formula.

Unlike manual trading, where traders are easily affected by emotions when facing price fluctuations. They will usually shift the position of the SL and TP due to feeling greedy or otherwise, anxiously facing the price that does not move as desired. In the long run, these bad habits can be a barrier to success, so that emotion-free EAs are seen as superior.

Therefore the trading robot can be a solution as well as an advisor / assistant trader in trading.

New features are constantly updated and developing.

As the development process of the Forex Trading Robot grows, more and more new features are developing to keep up with market dynamics.

For example, the news filter feature and invisible mode are used to avoid brokers that stop loss hunting. In order for you to enjoy the most advanced features, look for a Forex trading robot developer that provides auto-updates.

With these features, Trading Robots will always be updated with the latest features.

Trading performance can be tested directly

Because the Robot is always consistent with its programming standards, the trading performance can also be measured clearly. Trading robot performance can be measured by the backtest and forward testing methods.

So, before you buy a Forex Trading Robot, make sure that the performance report is good. So, when you buy a trading robot make sure that the performance has been tested and can be consistent profit.

Can do Multi-tasking.

Forex Trading Robots are able to run hundreds to thousands of instructions per second to comb and execute every forex trading opportunity. The workload clearly exceeded human capabilities, but it was easily done by the trading robot.

However, keep in mind, not all Forex Trading Robots have such high performance, because it depends on the system that underlies the making as well.

Weakness of Forex Trading Robots

Well, after seeing some of the great advantages of the trading robot, you don't get me wrong. Its name is only a robot and only a computer program, so the robot also has disadvantages, including:

Not all brokers allow the use of Forex Trading Robots.

Please note that automated trading robots can send tens to hundreds of market orders in a fairly short period of time. If there are enough traders using the Forex Trading Robot, the broker's server may be burdened by a long queue of market orders.

In this situation, the broker server could experience lag or even freeze. So, to avoid lags and freeze servers, some brokers will ban the use of Forex trading robots on certain types of accounts or pairs. So, make sure that your broker allows you to use robots to avoid undesirable things.

Demanding special skills to regulate it.

Maybe many think that if you have a Forex Trading Robot then you don't need to know anything about trading anymore. Yes, this opinion is true, but this opinion is not all true, precisely because the trading process runs fully automatic, then at certain times where the market conditions are out of the ordinary, then you are the first person to take control before getting loss caused by the robot. For this reason, it is recommended to use the Forex Trading Robot if you are already quite experienced in trading and have a sharp intuition in knowing when market conditions are not conducive.

More knowledge is needed for traders who want to use it

Make sure when you use robots to help with trading, you also have to understand the terms in using software to be able to install and maintain Forex trading robots.

This needs to be studied so that the EA robot continues to run according to the procedure. So, to run a trading robot make sure you understand the use of the robot that you must understand.

Less able to adjust to certain market conditions

When a high-impact news release, opportunist traders usually take advantage of price movements to gain profit. The activity was the cool name is news trading, and is usually done by scalpers.

However, the activity is a much higher risk than trading in normal market conditions; if you are lucky you can take home a lot of money, if you are lucky then the contents of the account can be lost instantly.

Unfortunately, trading robots are not designed to be able to adapt to these situations. That's because basically the way of thinking of trading robots is designed linearly, while at the time of the news release the movements move fluctuatively and randomly.

Additional costs are needed which can usually be very expensive

Trading using robots is definitely more expensive than manual trading. In addition to spending money to buy the robot itself, you also have to regularly pay VPS rental fees.

And believe me, the better the quality, the higher the cost, therefore you have to prepare more funds if you want to use a trading robot, even though many robots are currently distributed free of charge, but most are still untested by the robot's trading system.

You need to understand, that there is no Forex Trading Robot (EA) that is 100% perfect. It's a good idea to read a lot about important matters, whether it's Fundamental Analysis or Technical Analysis, so you don't always depend on trading robots.

"Don't let the robot control you in trading, but you have to control the robot. Make the robot your helper and advisor and stop the thinking of robots as your manager or boss."