Recently, the use of forex trading bots is increasingly being used by Indonesian traders. Not even a few providers of this robot software have been promoting their products openly through TV shows and YouTube advertisements.
But, is this bot for forex trading profitable? Or will it be detrimental to traders? Will accounts using trading bots be banned and blacklisted by the broker?
If you also have a similar question in mind, let’s find out the answer together in the following article.
Understanding Forex Trading Bots
Before discussing the advantages and disadvantages of forex bots, let’s first learn a little about this software. You could say, a forex trading robot is a robot that was created specifically to monitor the market, open positions, and close them when they are profitable.
So even though it doesn’t look like a robot in a movie, this bot application can move and predict itself like a robot.
In the forex world, this trading bot is also known as an EA or Expert Advisor. EA is an electronic tool created to monitor open trade opportunities both to open buy and sell positions automatically without human assistance for 24 hours.
So, you no longer need to monitor market movements, get ready to OP when the trading session is opened, predict when to sell, when to close, and so on.
All trading activities are fully carried out by robots equipped with certain algorithms and programs. Then, does using a forex trading bot count as cheating?
There are two opinions that can answer this question. Some professional and experienced traders think this is cheating. Because trading is no longer done by humans, but by robots that work non-stop. This means that the trader’s account has more chances of winning and may never lose at all.
While other opinions say that this trading robot does not violate the rules at all. Because even though they are regulated by algorithms, they do not regulate the market. The algorithms used by the software are themselves created by humans.
So if there is an unexpected movement in the market—which happens very often—then it is very likely that the robot will experience a loss because it is not programmed to deal with the situation.
In Indonesia, there are already brokers that allow their traders to use robots when trading. But not all of them allow the use of this forex robot.
Disadvantages of Using Bots for Forex Trading
Before you decide to use a forex trading bot, you should first know what losses this software can cause. As:
- Difficult to control by ordinary traders
- Need to spend big money to buy and maintain trading bots
- Knowledge of programming languages is required if you want to add your own analysis techniques
- Not suitable for use by scalpers and people who want to take advantage of news trading
- There is often swelling of losses when there is no margin level
So using a robot for forex doesn’t mean you don’t need to know anything. Precisely to use it, you need to know about the world of IT or programming and understand the world of forex and market analysis and movements. This means that it takes 2 knowledge if you want big profits with trading robots.
Because even though all the trading processes will run on their own, you still need to keep an eye on this robot. Especially if the broker you are trading with does not provide a margin level.
In addition, not all brokers allow traders to use robots in their applications. So if there is an indication of a robot without permission, your account may be banned and all capital in your account or capital to pay for bots will be forfeited or frozen. Because there are still many cases of fraudulent forex trading robots that harm brokers and traders.
Finally, the price of this robot application is also very expensive. It costs tens of millions to buy a ready-made robot application.
Advantages of Using Bots for Forex Trading
Although there are many disadvantages, it does not mean that this EA bot cannot provide benefits. Therefore you also need to know what are the advantages that can be obtained when using the best forex trading robots .
- Can multitask without having to monitor the market for 24 hours in front of the screen
- Active 24/7, never stop, never rest
- Will not be affected by psychological or emotional conditions
- Will continue to develop with more features and other advantages
There are also many of the best forex trading robots in Indonesia that you can try. But as said earlier, it is very expensive and requires special knowledge to operate it.
Thus the discussion about forex trading bots and their advantages and disadvantages. If you really want to use a robot for trading, always test the performance of the software before using it in the field for a real trading session.