Advantages and Disadvantages of Trading Robots

monarchcb.com - For some traders, trading with the manual method can often make them bored because they need to regularly monitor the chart, especially if you have an open position without installing SL, moreover, it can often make us worried, especially if you are very brave to open a position with a large lot. large while the funds are minimal. This is because forex trading with the manual method requires good trading psychology and money management so that you don't go wrong in determining positions with natural lots. There is a trading method that can be free from trading psychology, namely automatic trading by installing a human machine or EA (expert advisor) on our MT4 (windows type).

There are at least 4 (4) advantages of trading using human machines, namely:

1) can be free from trading psychology, especially for traders who are currently sharpening their trading skills, because human machines do not understand trading psychology, humans only refer to technical aspects and money management.

2) for humans who use the martingale strategy (multiplying lots), traders do not need to divide how many lots for the second and subsequent OP (open position) when the pips distance (floating is less) with the OP reaches a certain value.

3) for human machines that have been equipped with money management, traders no longer need to make sure that the time is right for opening positions again and if they finish opening positions when the profit percentage has been granted.

4) The human machine can also determine the trading hours if there is such a facility, if the clock is outside the official one, the human machine will not open any position even though the trend is good.

But free from the above advantages, human machines also have weaknesses. 

There are at least 4 (4) weaknesses of trading using human machines, namely:

1) Human machines cannot identify the effects of elementary information, elementary effects that cause strong trends can cause our trading to quickly pick up MC (call limit), to avoid this, if humans have been equipped with an off trade system at special hours it doesn't happen problems, but if there are none, traders must turn off the Auto Trading button by means of the manual before the information clock is launched to avoid unwanted events.

2) the mistake of traders in using a human machine is generally to install a very large early lot in the parameter settings, where the early lot is not in accordance with the capital, or also to make a very small initial deposit than required by the human-machine inventor, especially if the robot uses a strategy martingale which caused the second and subsequent OPs to continue to swell, finally the call limit quickly arrived.

3) trading using human machines generally requires a normal internet connection and continuous availability of electricity (the lights never go out), this is because humans need to live and then, but this can actually be handled with a VPS charter, but even though a VPS charter, mistakes Technical skills beyond human expertise may still occur, such as restarting the server, therefore, monitoring human machines on a regular basis is always needed to avoid unwanted events.

4) Man-machine cannot be installed on MT4 type of smart phone (Android or IOS), Human-Machine can only be installed on MT4 type of Windows on laptop or PC, therefore, if we trade using smart phone, we need to fulfill it with laptop or a PC, a smartphone can be used as a human-machine monitoring tool only, or used as a trading bonus by means of a manual.