What does Trading Robot or automatic trading mean? It is a peculiar way of trading where a trader doesn’t open any trade, but it’s a program trading for them.
A lot of beginners, but also many expert traders are using this new trading technique which grew in the past few years thanks to the introduction of new softwares or “Expert Advisors”.
How does a trading robot work?
A trading robot is a software developed by experts which can make decisions on the market based on the analysis of different patterns and the use of indicators.
For instance its code could be: ‘if the markets drops more than the 4%, then sell it’. Usually a trading robot is developed in the same code as the Metatrader platform.
The quality of a trading robot depends on different factors:
- the developer must know how the financial world works
- the developer should know how to code to avoid any kind of errors
Every trading robot allows the trader to set the level of risk they want to take in their trades, the leverage, the maximum margin and the amount of money to trade for every single investment.
The chosen risk will be used to set up the levels of stop loss and take profit in each trade.
Does a trading robot work?
There are different opinions about trading robot. There are also many different trading robots to choose from.
What we can say though is that it’s a very good help for traders who haven’t got much time to trade by themselves, or don’t have enough experience.
It’s very important to choose a good product depending on other traders reviews and on the prices. In this field the quality level is reflective in the product price.
However a lot of people see a trading robot as a machine, and machines without a brain can sometimes commit errors.
What we would suggest is to research and read very well all the available reviews before buying a product. Plus if there is a free trial of the trading robot to test it first to see if it’s suitable for you.
Otherwise it’s always better to invest your time in developing your knowledge and experience in order to trade by yourself.
To start developing your trading skills, the best thing to do is to learn how to trade and how the main trading strategies work.