LUXEMBOURG CITY, LUXEMBOURG / ACCESSWIRE / May 16, 2018 / With staggering daily trading volumes of over $5 trillion, foreign exchange (forex) is by far the world's biggest market and attracts the broadest range of participants: governments, central banks, financial institutions, corporations, retail brokers, and individuals. Currency trading can be highly lucrative, which explains the persistent interest in this market. However, no investment comes with a 100% guarantee of profit, so thorough preparation and a solid, tested strategy are critical components for success. It is often claimed that forex is the most novice-friendly market, which is likely due to the wide availability of automated trading systems (ATSs). Known also a robots, experts advisers (EA), and auto traders, they can indeed offer beginner forex traders a good entry point, but investors need to be aware of the specifics and choose carefully. The experts at leading brokerage QSmart Limited explain the key attributes of ATSs, highlighting factors that traders should keep in mind when opting to employ these solutions.
As their name indicates, automated systems eliminate the need for human intervention. At their core, they are all computer programs instructed to behave in a specific way. The majority of forex trading robots use the MQL scripting language and are designed to be compatible with the popular MetaTrader 4 platform. The program places trade orders after identifying signals that include various spread discrepancies, price instability patterns, and news with potential impact on transactions and currency values. To prevent losses, ATSs typically display a warning message in the event of failure risk and await approval before proceeding with the trade. Forex robots apply mathematical rules to generate returns, and since these rules are selected by the program developers, ATSs are as intelligent and skilled as their creators. Highly experienced programmers can optimize the performance of their robots by using backtesting, which is a process that also lends itself to automation.
What makes forex robots such a valuable tool is the fact that emotions are removed from the trading equation, the QSmart Limited experts note. ATSs are logical and consistent, making decisions on the basis of established parameters. Since errors of judgment cease to be an issue, automated systems can deliver benefits both to novice and experienced traders. Robots are particularly useful for currency speculators because the programs immediately identify and reveal price discrepancies, making it possible to execute a trade without any delay. Moreover, ATSs allow multiple accounts to be managed with ease, which would be problematic for traders if done manually. For all these benefits, forex robots would be unable to ensure profitability unless they operate on a sound trading strategy. It needs to provide for multiple scenarios, undergo testing in real market conditions, and be executed in accordance with plans.