Three Facts Programmers Won’t Tell the Average Trader about Forex Automatic Trading Robots

Forex robots are automated systems that function by entering trade orders on behalf of a human operator. A programming code in these robots enables them to make gains using the application of mathematical rules that are decided by their creators. In spite of all the uncertainty surrounding the returns that it generates from using Forex automatic trading robots; their popularity is still increasing among traders. Currency trading aficionados have at some point in their trading career considered purchasing one of this popular software advertised online as a trading revolution. These trading robots have time and again awed many professional Forex traders with their success rate in the Foreign Exchange Market.

One fact that stands out about a Forex automated robot is that its intelligence and skill is entirely reliant upon its creator. The robot runs a pre-programmed routine under all circumstances which mean that they are incapable of revising, changing or adapting to changes in the Foreign Exchange Market. In response to any change in the market, the robot will endeavor to cut losses based on pre-programmed instructions provided by its programmer. In as much as the commands executed will be based on technical analysis tools, backtesting will be used by the sophisticated developers to optimize the results provided. Their functioning utilizes the tweaking of the program to ameliorate its routine concerning the highest drawdown and the placing of Stop-Loss orders. Below are three facts that the programmers won’t tell the average trader about these robots.

  1. Logic Problems behind Their Creation

Creators are well aware of the challenges with the logic used to create the Forex trading robots and the accurate results that they generate. This problem stems from robots never having been tested before in actual prevailing market conditions. Historical data is typically used in almost all cases together with the use of non-trade related problems which include connectivity issues and a host of other problems that may start off from the Forex broker. For instance, if there is technical challenge with a local traders Internet service provider (ISP), the robot becomes useless as a brief blackout wipes out a dealer’s account. To their ensure survival in the Foreign Exchange Market, a trader must practice impeccable money management tactics which include a willingness to admit (or acknowledge) losses and the proper utilization of Stop-Loss orders.

  1. The Use of Forex Trading Robots Means That A Trader Gives A Machine Control Over Their Finances

Using Forex automatic trading robots means that an operator relinquishes control of their finances to a machine that does not have a human brain that is capable of critical thinking. These robots are pre-programmed to work according to the instructions in their code meaning that they cannot adapt when there is a change of circumstances in the Foreign Exchange Market. Regardless of the severity and vitality of the necessary change, the robot does not modify or adapt thus increasing a trader’s chance of missing out on trade lucrative opportunities in the Foreign Exchange Market. Constant change is a common aspect of the Foreign Exchange Market, making the robot’s rigidity their biggest disadvantage.

  1. The Robots Are Only As Smart As Their Programmers

A trading robot is only as smart as the creator that was responsible for bringing it into being. Some of the creators of these robots are not professional traders or at the level of trading gurus such as Benjamin Graham, George Soros or Warren Buffet, but only interested in making a killing from their sale of this ‘revolutionary.’ A robot that has been created by an average trader means that the instructions will make the robot’s function average, which then translates in average trade results or massive losses. Purchasing any Forex trading robot is thus not advisable since using them without knowing their modus operandi goes against the basic principles of a successful Forex trading career.

Order Unique Answer Now

Add a Comment