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Forex Robots Pros and Cons

Forex is a volatile market and although it is possible to sustain heavy losses, there is also the potential for significant profits. In order to maximize the chances of making a gain, an increasing number of traders are opting to use forex robots, as they believe this gives them an advantage over the market.

Forex Robots Pros and Cons

Some of the problems in opting to trade without the use of a robot are obvious and inescapable; a human needs to be fed and watered as well as take comfort breaks and a nap now and again. Many traders remain rooted to their screens for long periods of time, afraid to step away in case the market moves and they miss a key opportunity. This is particularly the case for those who specialize in short term trading.

This is where using a robot provides a distinct advantage. Having a robot set up with the correct parameters, it is possible to leave the room or even the building, safe in the knowledge that their account will continue to operate. It is even possible to access some robots remotely, increasing the flexibility they provide a trader with.

It is also fruitless to argue against a robot`s capabilities when it comes to analyzing results or extracting data from a set of charts. Machines will always outperform humans in these areas providing they have been set up with the correct criteria in the first place.

But therein lies the problem. Many traders feel uncomfortable with the notion of handing over control to an automated machine when any mistakes or oversights could mean a significant loss of money. Having the reassurance that all necessary instructions have been included to cover all manner of scenarios can elude many traders, meaning they prefer to monitor closely everything the robot does, more or less negating the advantages it offers.

The other disadvantage is that even though the best traders do not operate based on their gut feeling, it is important to keep tabs on market movements and many describe forex as a constant learning experience. By allowing a robot to conduct all trades as well as complete the analysis, it is possible to stunt learning and become out of touch with the market.

Like most things in life, you generally get what you pay for and the best robots do not come cheaply. Those that are available at a bargain basement price are usually either compromised in some way or offer little flexibility, making their worth far more questionable. It is also usually necessary to keep software on robots updated regularly to make the most of the profits available in the market.

It is fair to say that there are significant benefits to using a forex robot and that many of its problems originate from being used in the wrong way. Some traders find that a good compromise is to use a robot to complete the analysis and to highlight trades without providing it with the authority to actually execute the deals. This enables the trader to retain an element of control while still making the most of the robot`s superior skills in certain areas.

There are lots of ways to make profits in Forex currency trading and ultimately whether to include a robot in a trading strategy or not is a matter of personal choice and finances.


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