Forex Auto Trading
What is Automated Forex Trading, Forex Robot, or Forex EA (Expert Advisor)?
Forex trading on your own is a full-time job; it needs a lot of patience and knowledge. Psychological factors like emotions, greed and fear play an important role and affect the success or failure of a trader.
Also, a majority of Manual Forex traders tend to the incorrect decision at the most critical time of trading, which negatively affect their profitability. However, all Fore EAs or Robot are not reliable. You must find out the best one and try it on a demo platform before trading it live on your real money. Always trade with a trustworthy Forex broker in Dubai, UAE.
However, with the advancement of technologies like Artificial Intelligence and computation capacity, the shortcomings of Manual trading can be avoided by using fully Automated Forex trading systems.
Automated Forex trading systems are also known as Forex Robot or Forex EA (Expert Advisor). These are the trading software that uses Algorithmic programs and Mathematical formulas to make lightning-fast decisions for you and transact on the trading platform. Such a complicated algorithm and fast decision are almost impossible for human traders when trading Manually.
This trading software is developed using the most popular language, MQL4 – which is the widely used standard computer language in the Financial industry.
In short, the Forex EA or Forex Robot trades 100% automatically, 24*5, with minimum human intervention.
Advantages of Automated trading
- 100% Automated – The traders need no training, no experience, or advanced knowledge. The Forex Robots or EAs are programmed to carry out real trading without human intervention. You have to set the trading parameters only once and keep monitoring your results if you want.
- Trades 24/5 — You can have a peaceful sleep while the Forex Robot or EA is working for you, and scanning the market for profitable trades. Forex Robots and EAs trade 24X5 and are immune to humanly emotions that affect profitability.
- No Profit Sharing — You don’t have to share your profit with anybody. You are not dependent o any fund manager or investment company that charges a share of your profit as their fees.
- Lightening fast decision — You can’t match the speed of EAs or Softwares while placing a trade and analyzing the market. It can execute several trades in a fraction of a second.
- No Emotions, No Mistakes — The Forex Robots or EAs are free from negative human emotions that affect the trading decision. It makes highly successful decisions based on pre-tested strategy and algorithm.
- Stress-Free Trading — The EAs or Forex Robots relieves enormous trading stress from your shoulder and allows you to earn from the comfort of home.
Disadvantages of Automated trading
- Technical Failures — The EAs or Fore Robot trades 24*5, and it needs an uninterrupted internet connection to execute all the trades based on its algorithm.
But, the good news is that there are plenty of VPS (Virtual Private Server) providers where you can host your MT4 trading platform and run your EAs or Trading Robots. These VPS providers guarantee 99.9% up-time.
- Vulnerable to High Volatility — Most of the EAs and Robots work best on the trending market. However, they are vulnerable to sudden changes and critical fundamental developments in the market, like economic and political events.
Hence the traders must observe caution and stop the EAs or Robots during a highly volatile market.
The steps to start Automated Fore trading are as follows
1. MT4 Installation — You have to open a trading account with one of the best Forex Brokers in UAE and install the MT4 platform at your computer or on a VPS (Virtual Private Server).
2. EA or Robot Installation — Purchase the best performing Forex EA 2020 or the Forex Robot license. Download the EA from the vendor’s website and install it on your MT4 platform. You will get a manual on how to install an EA on MT4, or you can also take help from the support team selling the EAs.
3. EA Activation — Activate the Forex EA and enable Autotrading. Use the activation code provided by the EA vendor to activate the EA on MT4 platform. Now it is ready to go; it will trade on its own.
How to enhance the Forex Robot or EAs performance?
If you think that you will successfully earn profit the next day just by finding the best Forex EA or Robot of 2020, then you will be disappointed.
The experts in the field of Forex Robots with years of Forex trading experience and extensive research on Forex EA / Robot trading have few tips for you. These tips will help you to improve the performance of a Forex Robot / EA in 2020.
- Ensure the Best Trading Conditions & Execution Quality – If the spread of your Broker gets unreasonably high during news hours and market opening and closing hours, then most of the EAs can not handle such situations well. Hence to ensure the best result from the Forex EA 2020, you need a broker on your side offering spread tight spread in the range of < 0.5 to 1 Pip. Your platform execution speed also needs to be fast and no slippage. Find out the best Forex broker of UAE in 2021.
- Use a high-quality VPS (Virtual Private Server) – The VPS should be fast and reliable. The VPS latency should not be more than 20 ms. It is not advisable to trade with Forex EAs on your PC or Laptop. As the EAs and Robot trade 24*5, it requires an uninterrupted power supply and internet connection along with low latency. A VPS can achieve these things. You can subscribe to an excellent VPS service for hosting your MT4 and running your EAs or Forex Robot for $10 to $25 monthly fee.
- Perform a daily check on your VPS – Although the VPS providers claim a 99.9% uptime, it is safer to check your VPS every day to ensure it is working properly. Additionally, check if the MT4 platform is working properly and the EA is enabled on selected currency pairs.
- Track the Major News – Follow the Economic Calendar every day for high and medium impact news. Follow the EA vendor’s instructions about trading during news hours.For example, some Robot / EA are programmed to disable trading during news hours, and some EAs need to be disabled manually before major news hours and to be reactivated after a few hours.
- Read the EA Manual – The Author of the EA mention all important instructions in the EA manual. Therefore, follow the EA manuals carefully. Sometimes the EA developers explain few secret EA settings in their manual that can increase your profitability.
- Try it on Demo first – It is always better to try the EA or Fore Robot on a demo account first. Fine-tune your Forex Robot or EA while trading in the Demo Account. When you notice the EA is working effectively, then you can start using the Forex Robot in the live account.
- Don’t use several EAs in one account – Do not burden your MT4 platform with several EAs or Forex Robots. More EAs don’t guarantee a better result.
Hence, activate only one Forex Robot or EA on one MT4 platform, and select only 5 to 6 Charts for trading.
- Use the Latest Version of the Forex Robot or EA – The Forex market trend changes completely every few months. The EA programmers implement corrections and apply some fine-tuning according to changed market conditions. Hence always use the latest version of Forex Robots for consistent results throughout the year.
Forex Robots have their own advantages and disadvantages. It is difficult to get a well-performing Forex Robot that can generate profit consistently. Even if you find an excellent Robot you have to pay an expensive price to buy it.
An alternative to Forex Robot can be Forex Signals from well-experienced traders. Find the list of Forex Signal providers on our Forex Signal Providers page.