Forex trading bot (Expert Advisor) is software or algorithm script that may be added for the forex trading platform with all the aim that the application can run automatically or make invest in and sell transactions without having user manual instructions. Trading Robots, also known as Forex Expert Advisors, are one of the main components in Auto Trading with various functions.
Functions of Forex trading bot
The functions of the Forex trading bot vary, depending on the application settings used by the trader. Generally, Expert Advisors can be programmed to do the following:
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Open position (Buy, Sell) or Close position.
• Change the Stop Loss and Target Profit of an ongoing trading position.
• Analyze a currency pair based on certain technical indicator parameters that we can define ourselves.
• Sending alerts in the form of voice, email, API (integration into other applications).
• Analyze our account financial management. Balance, margin, and others.
With the ability to integrate into other applications, the potential for Expert Advisor development is limitless. However, Forex trading bots only carry out tasks (trading) according to the program in it. A Trading Robot will not ‘betray’ out of line from a predetermined system.
Comparison Of Using Trading Bots And Manual Trading
Manual Trading is a trading activity carried out by using humans as the perpetrators, where knowledge and human experience are the main factors. With manual trading traders are aware and can understand the situation that occurs in the market.
1. By including an algorithm to detect trends and be able to determine when a trade should be made, so that the trading bot can trade several orders at one time. When we use manual trading we can only place one order at a time.
2. The trading robot has no emotion, meaning that this technology will not change transactions at will because all transactions have been programmed. Manual trading is very vulnerable to the emotions of the perpetrators of these transactions, so many novice traders experience a lot of losses due to these emotional factors.
3. The use of trading bots has no transaction time limit, meaning that trading bots can make transactions 24 hours without a time limit, but for manual trading there are obstacles by humans themselves who have time limitations.
4. Bot trading is a technology where this technology to be able to get it must use a fee, although now many trading bots are free but to add features in it must use a fee, in contrast to Manual trading it does not cost money but the trader must continue to improve his trading knowledge with training and training to become a reliable trader.
5. Not all brokers give permission to use trading bots, because there are thousands or millions of transactions so that the broker’s server can be burdened. For Manual trading there are no obstacles in this regard.
So what will you use to trade? manual or automatic, depending on the questions below:
a. How many orders in one day?
b. How much time is there for trading?
c. How much volume is used?
By answering the three questions above and reading the complete information on the traders union, it can help traders to know the trading method used.