I remember the days of carefully studying stock prices, companies, and interest policies. All to make decisions on whether or not to invest. But these were the nineties. Instead, technology like a forex robot has been coded to be programmed to make automated investment decisions that suit a trader’s propensity for risk and desirability. Forex robot reviews show that forex traders have been able to benefit tremendously by relying on automatic trading strategies to make sound decisions and save hours of traditional research before trades are initiated. Moreover, the speed of trading has drastically changed the financial industry. Where the phone was needed to place an order, now you can buy or sell any financial asset class from your phone sitting on a train. And with the speed of fewer than 5 milliseconds! So isn’t the market simply too fast for a manual trader? Most people think so and a forex robot is a solution. An algorithm can take trading decisions in a split second which a person can’t.
So how many traders are in fact using a forex robot?
It’s estimated that over 60% of all forex traders are using some kind of robot. Either a fully automated strategy (EA aka Expert Advisor) or an MT4 indicator. This proves that the typical retail forex trader embraces algorithmic trading. Statistics show that approximately 85% of retail traders end up with a loss whereas robot traders do consistently better. And this is without the huge time advantage. Robot traders spend about 15 minutes daily on their trading account. Manual traders easily spend 4 hours daily in front of their screen (desktop – smartphone – tablet). Taken this into account, a manual trader must make double profits to make the time loss worthwhile.
What types of forex robots are there?
Basically, there are five types of forex robots;
- Trend strategies
- Grid strategies
- Martingale strategies
- Price action strategies
- Scalping strategies
Each strategy has its specific risk settings and potential and therefore it is very important to understand what the strategy does before risking real money. Some Expert advisor resellers offer free demo testing which allows you to fully understand the trading strategy.