Are Forex Robots Really Worth It?

In order make things easier for the traders, researchers came up with the automated systems or robots that could place the buy and sell orders automatically as soon as the system's calculated values match a certain price. Once those orders are executed, robots tend to close them at a certain level of profit or even close them at loss if stop losses are configured in them.

The idea seems quite catchy but wait, before you plan on to use such automated system you must know the pitfalls of using them after that you might not go for it.

1 - Ineffective in a Volatile Market
Volatility is what makes the automated systems useless for the traders, as they fail to enter and exit the market at the right time and end up with incurring losses majority of the time. These robots work more on technical data rather than the fundamental data.

Considering today's uncertain market where the fundamentals including speeches or even rumors that shape the market instantly, the automated systems become ineffective as they cannot interpret the 'importance' of the fundamental whose impact could be much greater.

2 - Too Costly
There are a number of automated systems out there in the market, development of which takes a great amount of time, effort, and monetary investment.

Consequently, they don't come for free and to have a good automated system you would have to pay a substantial sum of money. So if you are a newbie in forex trading and are looking forward to get a robot, it would be better that you don't and instead spend that money to fund your forex account.

3 - Minimum Balance Required
Most of the automated systems would require you to have a considerable amount of equity in order to let those automated systems enter the market and execute the trades on your behalf. It is because their calculations are done in such a way that the lot sizes they pick up are normally bigger that could only work well if you have a large sum of equity present in your account.

4 - Brokers and Slippage
One wouldn't get surprised to know that the brokers get to know whenever a trader uses an automated system with its trading platform, which of course is not in favor for the broker as its chances of losing money are more than gaining it. Therefore, many brokers often release the slippages that are the variation in the actual and showed up prices due to which the robot enters the market at the wrong price and the probability of losing the money increases sharply.

This is the reason why many brokers do not support the usage of automated systems on their trading platforms, which is also a negative for you because once you bought a robot and your broker doesn't support it, it's useless for you. Therefore, investing in learning the ropes of Forex trading pays off sooner or later, rather than finding a short-cut because later on you would be finding yourself at the same place where you started.

If you are looking for the more information about best Forex Robots expert advisor, please visit us at Forex inControl EA.

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