The use of application programs (scripts) – trading robots (Expert Advisors) and technical indicators (Custom Indicators) – to automate trading on the international currency market Forex is not only a modern solution, but also a useful addition to the functionality of the trading terminal, and sometimes even a necessity when playing with currencies both professionals and beginners. Along with the compounding calculator on FinmaxFX robots make trader’s life way easier.
However, it is necessary to be attentive to the quality of these programs, namely to the accuracy and speed of their work. For this reason, individual robots and indicators for trading on Forex can only harm their user, because it is important for the developer (and the trader as well) to understand the purpose of their use, to test for compliance with these goals and “adjust” to achieve the best results.
How does a Forex trading robot or technical indicator work? The main task of all forex robots and technical indicators is to implement the same, routine, repeatable operations at the highest possible speed of response with the highest accuracy of their execution. This saves the trader from tedious making of monotonous decisions, at the same time saving his time for development of new, more effective trading strategies and analysis of fundamental factors of market conditions.
Another important fact is the fact of relieving a serious stress on a trader. Dulling attention of even the most experienced player, as a rule, leads to making the most elementary mistakes, which he then tries to correct by taking an unreasonably high risk – to return the lost funds that can reset his account overnight. Emotional component among other human factors has killed more than one successful currency trader.
Forex applications can be called: Expert Advisors, Expert Advisors, trading robots or mechanical trading systems; technical indicators. All of them are designed to automate the process of trading on Forex as much as possible. Their main functions: round-the-clock analysis of financial markets and detailed monitoring of trading signals; execution of a programmed strategy; autonomous round-the-clock trading without the participation of a trader, a computer and the Internet network and control of all transactions – sending a forex broker any requests for transactions without the participation of a person; lightning fast processing of significant data sets; lack of illusions about the assessment of certain risks.
Forex robots can be written with different assumptions on drawdown, for example, from 5 to 60%, depending on the implemented strategy. There are such robots that are able to detect price fluctuations in intervals of two seconds and to make buy/sell transactions, which a person obviously cannot do physically and intellectually.
Which Forex robot should I choose? Undoubtedly, it is possible to find certain ratings of robot programs for Forex in the Internet, but it is not known among what aggregate sample they were made and whether it was representative. At what time interval was the robot tested? How many traders? All these are questions, in most cases not having a clear answer. Also, the commitment of the authors of the ratings is unknown. Therefore, we can rely on the ratings, but only in terms of familiarization, but not to make a decision.
It is desirable to test robots independently and/or with the participation of experienced brokers. The best robots for Forex trading are those that: are written by yourself or your forex broker; tested in person or by your Internet broker. Again, the better the work done by programmers and experienced traders when creating and writing a robot program for Forex, the more expensive it will be. There are also free robots, but they can be used only for demo testing. Otherwise, the range of prices for various trading robots is huge – from $30 to $30,000. Another question is, can a robot cost a thousand times more expensive to be at least a quarter of this number more effective than a cheaper one? Any application program (forex robot, technical indicator or other script) is written for certain trading platforms and terminals. The most authoritative and popular of them is MetaTrader versions 4 and 5. In fact, MetaTrader has the largest number of various scripts written for it in its own MQL4 IDE and MQL5 IDE development environments in MetaQuotes Language versions 4 and 5, respectively. Selecting, installing and configuring trading robots is a feasible task, you only need to have a certain theoretical and practical base. It is the fastest and most reliable way to get it on specialized courses. Education in trading will be useful also because you can not rely on any trading robot – you will have to think through the strategies that you will program on automatic execution.