The age of automation is upon us, and robots are doing more human work than ever before. Therefore, it should not have come as a surprise when forex automated trading systems or FX robots were invented and branded as miracle aids by their manufacturers. Therein lies the problem: no one does anything for nothing.
Why, then, would merchandisers invent these robots that are admittedly capable of doing some things at a scale unreachable by humans, if not to make every trader a millionaire? As is clearly evident in the first place, despite the promise of the searing advantages of automated trading, traders haven’t all turned into consistent profit-takers since the advent of FX robots. Clearly, the notion that they are fail-proof is a fallacy, too.
The benefits of FX robots
Nevertheless, there are some benefits. They were invented with the express purpose of being able to effect a trade without psychological fear or favor. So far, so good. These trading systems commence a trade at just the right moment. They are also far more advanced when it comes to studying charts. Not only are they quicker, but they can process mass volumes of information on a scale that is likely never to be matched by humans. Perhaps most usefully of all, they can spot trends that are obscure to humans and can be handy when you learn how to trade CFDs, for example. This means you can have the ability to profit-take even in volatile markets.
The negatives
It seems the negatives are confined to the manufacturers themselves, not the product. Despite promising nearly consistent 100% successful trades, this isn’t the case. Trader accounts lose money instead of gaining.
Remember the golden investment rule that if something sounds too good to be true, it is probably a scam? And isn’t a miracle system – no matter the technology being utilized – that guarantees unbeatable and beneficial trades just that? Upon closer inspection, FX robots can only be thought of as scams designed to raid trader accounts instead of replenishing them. If you’re thinking of using this technology, read up on it before making your purchasing decision, and be sure to consult genuine, unbiased reviews from novice and sophisticated traders alike.
What happens if you buy a state-of-the-art, rave-reviewed automated system? Can you now breathe a sigh of relief, unwind, and wait for the promised profit inflow into your account? If you buy into such a fantasy, you probably shouldn’t be trading in the first place. Despite the undeniable prowess of FX robots and their mass processing ability, this is no match for your own mind.
By all means, use the technology to do what you cannot, but use it to complement your trading strategies rather than replace them. Remember that forex automated systems are programmed to perform well within certain market parameters. This means they may not recognize certain technical indicators or how quotes are positioned.
These factors, along with market sentiment and reaction, are organic and dynamic, so you are the only one who can ever read these situations correctly. While the robot can help you improve your trade performance, it cannot set your trading strategies for you. Stick to what you do best, while drawing on the robot to find more opportunities. The robot cannot replace you and isn’t a guarantee of anything, but it can help you if you remain actively discerning.