Expert Advisor
Forex Robot(Expert Advisor/EA) is a series of algorithm code(application) which is converted from a series of trading systems and can be installed in forex trading platforms such as MT4 or MT5. The application is able to carry out trades automatically (auto-trading) according to the parameters summarized in the algorithm. This feature has been used by traders from various countries, both beginners and reliable traders, as an effort to get optimal benefits from forex trading.
Expert Advisors (EAs) or forex robots are quite popular for traders who are unable to manage their own trading accounts every day due to various alibis. Moreover, there are traders who do not hesitate to spend up to hundreds of US Dollars every month to subscribe to this feature.
Use of Expert Advisors (EAs)
EA can take over various human decisions in trading activities 24 hours, 7 days a week non-stop when connected to a PC that is always on or a Windows Virtual Private Server (VPS).
Here are some of the main functions of EA:
- Open and Close trading positions in various types of predefined setups, if the price movement has met the specified parameters.
- Set the amount of trading volume (lots), and Take Profit and Stop Loss points based on the conditions that have been inputted in the main parameters.
- Send notifications internally on the platform (text and voice), or through various other applications such as email and short messages (SMS).
At first glance, the use of this Forex Robot is very instant and can make it easier for all traders to make profits without the need to look at a computer/laptop all day long. However, there is one core aspect listed in Forex Robot, namely: The implementation of all trade executions and instructions by the EA is only limited to fulfilling the “orders” that have been entered in the program.
The advantage: Because Forex Robot can only obey orders that have been set, so that its use in trading is thought to be able to eliminate the negative impact of human emotions. It should be noted, the influence of emotions when trading is one of the main causes of bankruptcy for many traders. By eliminating this emotional intervention, Forex Robot can improve the quality of forex trading execution. Moreover, the automated execution of robots is clearly more agile and precise than ordinary human actions.
Weaknesses: Because Forex Robot can only obey orders that have been set, so he doesn’t know a certain time to stay away from the market and the analysis used is also purely technical. Fundamental based traders cannot use it. For traders who use technical analysis as well, the use of robots is a big risk because of this aspect.
Take for example, when there is an election or news that has the potential to have a big impact on the forex market, traders who transact manually can decide to stop trading first. However, Forex Robot will not identify such moments. As a result, the anomaly of price movements that occur can conflict with the technical parameters set, resulting in large losses.
Currently, there are certain functions that can be included in the EA in order to finish trading at the time approaching the release of meaningful news. However, this function will only run easily when an event has been scheduled in the forex calendar only. So, this function can only minimize errors, not eliminate them altogether. Every trader who wants to use Forex Robot must master this weakness, so as not to rely on it too much. Forex Robots also need human intervention in order to be able to carry out their functions properly.
Methods of Earning Forex Robot
Make Your Own Robot
Forex Robot can be made yourself or obtained from other parties. The programming language required to create a Forex Robot is different for each trading platform. Some of the EA programming languages that are very popular among forex traders are MQL4 for the Metatrader 4 platform, MQL5 for the Metatrader5 platform, and C# for the cTrader platform.
For those of you who do not master programming languages but want to make their own trading robots, there are also several EA Generator applications or programs to create trading robots without coding. However, such materials are generally not able to cover all parameters evenly, so the resulting robot is even more rigid than average.
Buying or Looking for a Free Robot
For the option of getting a Forex Robot from another party, there are 3 alternatives, namely: subscribing to a robot (traders must pay a rental fee), buying a robot (one payment can be used for life), or looking for a free robot.
Well, how come there is a free Forex Robot? Do the people who share it have nothing to lose? Well, it’s a normal doubt among traders. There are some traditions