There are a great many trading advisors.
They may be divided into several groups:
– independently control the trading process. They can 'make’ decisions without the trader’s participation.
– to open and close a transaction a person’s decision is required.
– provide data based on the analysis of various news, statistics, reports, etc.
– designed to trade following a trend. This software is considered less reliable as they often give false signals.
– all advisors, which involve at least one indicator in their operation.
– their operation is solely based on a mathematical system of calculating a more profitable position.
– make it possible to turn a losing position into a winning position. They’re considered to be high-risk ones.
•For capital management
- these programs allow you to trace and assess risks.
–universal robots allowing you to work with different currency pairs within one trading platform.
These are not all types of programs by no means. Robot classification may be different. There are also combined programs uniting the features of several advisors. Robots are selected individually considering the trader's strategy and needs. One can find and download profitable software on both free and paid resources.Advantages and disadvantages of advisors
A Forex trading advisor
may become a good assistant if you consider its advantages and disadvantages in advance. So, the pluses of automated advisors are:
•No human factor:
positive or negative emotions, agitation, excitement, etc. all robot’s decisions are based on well-planned algorithms.
•The possibility of round-the-clock use.
If a trader has not much time, a robot can monitor the situation when a person cannot be present behind a computer.
The advisor’s reaction is instant. It ‘makes’ instantaneous decisions, while a trader, even the most experienced one, needs some time to think.
Despite many advantages, advisors have their drawbacks. They are:
•Need for constant Internet access.
If your PC turns off or the Internet is lost for some reason, your robot becomes completely useless. Because of constant failures and low-quality Internet, there may be slippages, which will result in losses.
•No human factor.
The basis of the program is only technical analysis and well-tried algorithms. However, a robot cannot analyze the market situation, doesn’t take into account the political situation in countries, cannot do long-term forecasts.What is better: paid or free advisors?
There are paid or free advisors. Which ones are better? Many beginner traders stick to the opinion that there's no such thing as a free lunch. In fact, that’s not always the case. There are a lot of good advisors, which brokers distribute. That’s an optimal option for a beginning trader who is developing his strategy and trying various instruments.
Developers distribute plaid software on a commercial basis. These advisors may cost a huge amount of money. However, no one can guarantee their working capacity and effectiveness. It’s better to buy software from reliable sellers who provide full support and regular updates. Paid software better fits seasoned traders who have a working strategy and a clear idea of their goals and needs.Setting trading robots
To make the software work in line with the trader's goals, he needs to set it correctly. As a rule, the most careful attention in the robot setting
is paid to the next items:
•Type of currency pair.
Robots are most often created to work with a specific currency pair. That’s why you have to decide on this parameter before buying the app.
To be set individually based on the trader’s strategy.
Lot is the main unit of measurement in the exchange market. It is usually set by default, that’s why if you want to change the value, you have to do that manually.
There are advisors, which open and close transactions only in a certain time interval. These programs may turn out to be ineffective at any other time out of a set interval.
To be set manually and determined based on experience.
Changing standard settings is possible only if you know and can predict what consequences these steps may bring. You should do that carefully and not for the sake of interest only. Also, you shouldn’t change settings responsible for analysis algorithms. Otherwise, the software may appear to be ineffective and even loss-making.Why should you test a robot?