Are forex robots of any use? Should their use be allowed? Why do most Western broking companies ban use of forex robots by traders?
Try and replace the phrase 'forex robot' with 'mobile communications' in the previous paragraph. Don't you think that answers to questions in the first paragraph will be similar to those in the second one?
Disputes about the use and harm of innovation, the role of scientific and technical progress in the development of humanity etc. will last as long as there is a homo sapiens around.
The forex market is only (or as much as) 40 years old. But how much has changed over this time! It was only 20 years ago that trading in the currency market was done through the telephone - the line telephone, by the way, because there was no widely available mobile communication back then. Charts were drawn by hand, on a graph paper (I wonder if the Pepsi generation knows what it is). It is hard to believe that traders and brokers used to work in such conditions! It would be interesting to read discussions of forex market conservatives that had the custom of trading with the receiver next to their ear, and revolutionaries who were the first to use opportunities offered by the world-wide web for trading...
Similarly, now there is a war of words under way between conservatives and radicals about the role and usability of forex robots in traders' operations. The former (mostly represented by brokers and DCs) deny any use and even ban the use of automated advisors, the latter (primarily, traders - both beginners and professionals) are completely in favor. So, RoboForex not only allows using robots, but also encourages traders to work through them, positioning itself as a Broker Created for Advisor-Supported Trading.
You won't figure out who's right or wrong in this dispute - everyone's got their own truth, each party has compelling arguments for their position. Fortunately, time, an objective category that depends on neither party, will put everything into place.
Luckily, the trader has a choice of working with brokers that ban use of forex robots or DCs that allow use of automated advisors.
What is a forex robot? A forex robot, an advisor, an expert, Expert Advisor - is software written in the relevant programming language to automate analytical and trading processes. The advisor is no gift of God or schemes of the Devil. This is a specific trading strategy developed by a specific PERSON (or a group of people) and laid out in a programming language. This is why all strengths of the specific trading strategy will work in an automated manner, like, actually, its weaknesses!
The advisor helps eliminate routine from the trader's day freeing up time for creativity and... recreation. The advisor can monitor the situation and market tendencies by using indicators and analyzers and give the trader tips or automatically, without the trader's involvement, make trades in the foreign currency market.
There are several groups of advisors based on their type. Each includes tens or even hundreds of different robots: pip hunters and scalpers, trend advisors, martingale experts, multi-currency and combined advisors. It is clear from the robot groups' names what functions can be performed by these advisors.
Where do traders get their advisors? They can be downloaded from your brokers (on a paid or free basis), found in the internet. Also, an individual program can be ordered from developers.
RoboForex welcomes use of any advisors treating them as assistants, no more - even if these are robots that trade automatically. Advisors will only help a talented trader by eliminating routine work, while no perfect robot will save a bad trader: if they rely only on automatic stuff, sooner or later this player will find their ruin. An advisor may be a good thing, but you got to learn all the time, especially the art of trading in the forex market. When selecting an advisor, one needs to understand the algorithm of its operation. Otherwise, this is a black box, terra incognita where one can expect a trick on any side, not an assistant.
Market Leader points out that RoboForex is placed 5th in the Second League of the 's Rating with good chances to upgrade to the Supreme League. Having said this, RoboForex's rating is above many other famous broking companies. So, unbiased Rating data suggest that even emphasis on advisor support, at least, does not prevent the broker from achieving good operating results which traders are fully satisfied with.
