The Pros and Cons of expert advisor builder To predict the future dynamics of price movements of the forex market it is common knowledge that technical analysis is used. There are many theories and methods of technical analysis, that are able to be coded and used in an automated way. You will be able to build an automated trading system otherwise known as an advisor or robot using your own or a borrowed trading system as long as it is profitable.
It's built using an expert advisor programming language and then operated within a trading terminal. There are advantages and disadvantages to trading robots which will review here and come to a conclusion. Automated Trading Systems - the advantages The Superior Speed This is the main advantage of automated trading systems.
Any program has the capacity to monitor up to several dozen trading tools and will make pre-coded choices for all of them and then perform the trade operations. No trader is capable of achieving such results Accuracy A very important advantage over humans. Automated trading systems will simply carry out all trading operations that are based on price that is programmed including closing and opening positions. And it won't make a mistake when it comes to trading volumes. Period of performance A program can operate twenty-four-hours a day or as long as a user needs and an automated trading system won' t miss an opportunity to place a trading order Absence of any emotion An undeniable advantage over traders.
Automated trading systems don't fall victim to any psychological influences in the way people do including those that trade professionally. Modernisation An automated trading system permits you to alter a program's code, changing it for the continually moving market conditions and differences within a trader's trading system.
You have the possibility to add in any new functions whenever you like. Automated trading systems also have several disadvantages otherwise manual trade would have become a thing of the past long ago. We can review them here: Difficulty in development When you build an automated trading system you need to develop a 'manual' trading system as well as be coding specialist to then build a trading robot. You can put your own manual trading system together but when you pass it to a programmer there is no guarantee that they would not make mistakes.
\ Technical analysis only Many automated trading systems have this disadvantage. Programs can't account for how quote dynamics on the forex market are influenced by fundamental data. The Absence of emotion An advantage but a disadvantage too. An automated trading system does not use intuition or emotion so can lose the entire balance of your account.
It will only act according to the program so would not stop when common sense would say you should. Situations of emergency An automated trading system is not able to contact your broker over the phone in case of losing internet connection and cancel or place orders. Any problem within the hardware of the automated trading system will cause losses.
Having examined all the pros and cons of automated trading systems, we can draw the following conclusion: Trading robots give traders several undeniable advantages, but you should use automated trading systems intelligently and constantly monitor and modernise your systems.