A forex robot or expert advisor (EA) is a computer program that is based on a set of trading rules and signals. These signals generate entry and exit signals for buying and selling. Apart from giving trading signals with highly profitable trading opportunities, best forex robots also have advanced capabilities to place and manage trades automatically on behalf of the trader. You must already know that it is very important to remove your personal emotions while trading so they do not influence the trading decisions. This is one of the biggest reasons why EAs were invented – to eliminate human emotion and errors.
To seek the best forex EAs, it is important to look into the pros and cons of forex robots. You need to compare the features and tools of the robots to see which one is most helpful and provides a great trading solution. Important features of best trading robots you need to compare among best EAs are-
1. Efficiency
The efficiency of analysis and execution of trades is a great quality of forex robots because a human cannot have the speed of a robot. The EAs can analyze a specific market within seconds, or even milliseconds. For example, EAs programmed with MetaTrader’s Meta Quotes language (MQL) incorporates the latest in technology. Due to the high efficiency, an EA does not miss any trading opportunity or does not lead to actively wrong trading decisions that may cause loss of capital.
2. Multitasking
Due to the excellent aptitude and intuitiveness of forex expert advisors, they are regarded as outstanding performers in multitasking. The forex robots are able to multitask based on the parameter, conditions, and rules. The multitasking efficiency depends on the RAM and processing power of the EA. When you choose a robot, you need to see how complex and sophisticated strategies it can implement.
3. Time
Unlike human traders, forex robots do not face the challenges of time. While you need to relax, eat, and sleep, an EA can work endlessly. Moreover, based on the location of human traders, they are also limited to geographical trading hours. For example, if a trader lives in Hong Kong, he/she will probably miss the opportunities that arise during European market hours because it will be midnight in Hong Kong when those opportunities come to him/her. It is not possible for people to stay awake for such long hours to trade. While choosing forex robots, see if they can take care of your trading portfolio for a long time when you are not present.
4. Human emotion
It may seem easy to keep aside your emotions when you are trading, but it is the exact opposite. Traders are burdened with the pressures of meeting domestic, social, and work challenges. Moreover, trading by itself is complicated and it is very difficult to remain logical when you are constantly suffering loss and your capital is at stake. However, as mentioned earlier, forex robots process trading decisions by removing human emotions from them. Forex robots are designed with strict and logical parameters. This is also something that you need to check in an EA before choosing it. You can view the past trading results of the robot to check its performance.
6. Backtesting
The foreign exchange industry is filled with scam and you should be careful that you are not scammed while choosing a forex EA. So, you must verify the probabilities and capabilities of an EA beforehand. A great way to do this is by using its historical data. However, it requires analyzing a high amount of data and demonstrating if the strategy has the potential to generate results. Forex robots are able to analyze the large amounts of data for determining possible results prior to being activated in trading live markets. When you choose your forex robot, make sure to check the results of the backtests.
Apart from these, other factors that you need to check are latency, connectivity, security, fundamental analysis, reflection, contemplation, and consideration to find the best trading robots. However, keep in mind that no forex robot is a miracle. You also need to expand your knowledge, gain experience, and trade cautiously if you want to be successful in this industry. Finally, be careful when you visit the websites of forex robot sellers so you can identify the scams and avoid them.
