One of the major obstacles faced by most Forex traders is the ability to control their emotions when it comes to trading in the highly volatile Forex market.
Fear and greed are two of the most fundamental emotions that we have.
And sometimes, during the heat of the trading actions, we can get carried away by our emotions and let them rule our judgment causing us to deviate from our trading strategy.
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This is a sure recipe for disaster in a Forex trading situation.
In order to avoid emotions overruling our better judgment, Forex trader can always resort to using automated trading robots to execute their trading decisions.
Automated trading robots allow Forex traders to combine the benefits of systematic trading and emotionless trading in the highly charged Forex market. By removing the human element in certain aspects of Forex trading, a Forex trader can maximize his return as well.
One clear example of how automated trading robots can benefit Forex traders is the automatic execution of buy and sell placements order when the time comes. This in essence allows a Forex trader to trade even while he is sleeping.
In addition to being able to preset entry and exit point with automated trading robots, Forex traders can also determine other parameters for the automated trading robots to follow. Forex traders can also decide what moving averages, price patterns, market trends or any other technical for the automated robot to follow as rules for their trading strategies.
Once the parameter is set, the automated trading robot will create algorithms that will execute the Forex traders trading decisions automatically without them intervening.
Free Automated Trading Robots
Sometimes these automated trading robots are provided for free as part of a trader’s account when they open their trading account with a brokerage.
If a trader finds the automated trading robot provided by the brokerage firm unsuitable for them, they can always purchase those systems that are available in the market. There are two types of automated trading robots in the market. They can be web based or standalone desktop version.
In terms of popularity, web based system are more popular.
This is due to the fact that the actual cost of ownership for standalone desktop version can actually be higher than one can anticipate.
For example, for the standalone desktop version, data are stored on the local hard drive.
This can be a problem as hard drives are mechanical components of a computer that can fail without warning. In addition, it can be more costly to protect a desktop system than a web based system from virus attack.
In terms of security concerns, web based systems have a higher integrity as the provider of these system usually use highly sophisticated security systems to protect the privacy of their clients’ data.
Furthermore all data are stored with expensive data backup system that an individual Forex trader can ill afford.
Another plus point regarding web based automated trading robot systems is that you can test the demo version of these system and evaluate which system is most suitable for your trading style and strategy.
An automated trading robot is an excellent way for one to systematize one’s trading strategies. In a constantly changing and highly charged trading environment, letting our emotions taking over our better judgment can seriously dent our pocket.
At times, letting an automated trading robot taking over the execution of our investment decisions can actually be a better course of action than letting our trading be self driven.