A trading robot or Expert Advisor is an application that’s designed to open and close trades without requiring the participation of the investor. Most investors swear by these softwares because they allow them to make money on the side without having to quit their day jobs. Automated systems are actually developed by people that have skills in programming. However, there are some websites that have simplified the process of creating customized robots by providing wizards. The problem with most investors is that they rush into buying trading systems without first taking time to understand what they are getting themselves into. Below is a list of facts that will help you decode the mystery behind these trading robots.
- It Makes Money While You Sleep
This is definitely the most interesting thing about using automated trading software. Unlike in manual trading where an investor only opens and closes trades when he is awake, a trading robot remains operational round the clock. Even when you are in bed sleeping due to an illness or on holiday, the software continues to search for trading setups that meet your instructions and close in on them. This spares you from the trouble of having to sit behind your computer for many hours due to the fact that the EA works like a virtual assistant. All you have to do is make sure the software is hosted on a virtual private host (VPS).
- Consistent Profits are Guaranteed
Most traders that execute orders manually find it difficult to maintain consistency in their performance. This is because they waste a lot of time overanalyzing the markets. Besides that, they are often affected by emotions. If a trader has experienced a series of losing trades, he might be afraid of entering trades due to the fear of not winning. On the other hand, a trader that has recorded many winning trades tends to be overconfidence, which in return causes him to open many trades that causes him to blow his account. At the end of it all, such traders keep switching between indicators and trading strategies. An automated trading system is much better because it follows a trading strategy without being influenced by trading history.
- You can Buy or Rent a Trading System
There are so many trading robots that are available for sale on the internet. Some are cheap while others are expensive. Those that are more sophisticated can give you a run for your money. This is because their developers capitalize on their efficiency. If you can’t afford to buy a trading robot or hire a programmer to code it, you should consider renting one because it’s cheaper. All you will be required to do is pay a monthly subscription fee.
- Ideal for Inexperienced Traders
Enrolling at a trading academy can be quite expensive. Some courses cost thousands of dollars. Besides that, you will still have to go through a long learning curve before you perfect the skill of entering into winning trades. If you don’t have experience in trading, it’s advisable you invest in a trading system. This is because the software will do all the analysis for you. It will actually set take profit and stop loss. All you have to do is set it up and go do your other things.