✔️ Information reviewed and updated in March 2024 by Pedro Martínez González
If you are starting in the world of trading or you already have some knowledge about it, and you do not know what a forex robot or you have never dared to use any, in the following lines we will explain what they are and how they can help you generate extra income.
What is a forex robot?
Basically, a forex robot is a computer program that is responsible for carrying out buying and selling operations currency in the forex market. This it does it automatically through a series of algorithms.
The algorithms in your system allow you to perform operations according to user-preset values.
These forex robots they can work 24 hours a day without stopping. But of course, for this it is necessary to keep the computer on all the time. Another widely used option is to hire a VPS to host the program and that from there it can work without problems and without the need to keep the computer on.
It is very important to clarify that, although try a robot, human intervention is always necessary even on a small scale. This is necessary because they work following the orders for which they were programmed and when a sudden change occurs in the market, their parameters must be adjusted to avoid losing money.
Are these robots really profitable?
The short answer is yes, as long as the robot works and is properly configured. If the robot does not have the proper and precise instructions to operate correctly, you may not see a return or even lose money.
There is a big difference between a robot and an artificial intelligence, while a robot will be in charge of following a series of orders established by the user, an AI is capable of analyzing and making decisions by itself. Therefore, the robot at a certain point needs the intervention of a trader with high knowledge about investments.
Advantages and disadvantages of forex robots
Like any system, these robots have certain advantages over manual trading. However, they are not perfect and they also have some disadvantages. It is important that you have this clear before starting to operate with a robot.
Advantages
- You can activate or deactivate it whenever you want, you can even leave it operating 24 hours a day, 7 days a week.
- Because it is a robot, has no emotions, Whereby will not hesitate to perform an operation. We mention this because of the so-called "Trading Psychology", a topic much discussed among investors.
- You will not need to be constantly watching the screen to see the exact moment when a good investment appears.
- They are fast and will perform the trade instantly when they see an opportunity.
- You can program it as you wish and with the parameters that suit you best.
Disadvantages
- You are not in full control of operations.
- They cost money (usually a commission). There are free robots, but you should not rely too much on them, some are very basic and lack important functions.
- It is possible that your broker does not accept the use of robots, in that case, you should consult with them.
- If you want to program it, you need high knowledge of these technologies and computer science in general.
- Like everything in the investment world, there are many scams going around. Remember to be very cautious and do a little research on the company / robot that interests you.
How to acquire a forex robot?
Nowadays, acquiring a forex robot is a fairly simple task, there are many in the market with a very good quality and reliability and even some brokers currently include one within their platforms.
When choosing yours, it is important that you check their commissions and reviews on the network. Some charge more than others and there are even some that require a minimum amount of money to start operating.
If you don't want to install software on your computer, or hire a VPS, there are robots that you can use online and that operate from the manufacturer's servers.
Very good explanation, it has clarified my doubts and I have understood it perfectly! Thank you!!