A forex robot for MT4 is an auto trading system designed to function on the MT4 trading platform. Specifically, any robot that can function well on the metatrader platform is known as an expert advisor, and they can do just about anything as instructed by the trader that created it.
Any one at all can create a robot because it is easy to do so using any of the forex EA generators. This is why traders have to careful about what EA they apply in their trades. The marketers of the product usually promise a lot to the traders, and in a lot of cases, the robot is free, making it more enticing. This is not to say that all of the free robots out there are not reliable, the point is that traders should be careful when going for any trading robot at all. To do this, they can back test them on a demo trading platform for a reasonable period of time before applying them on live trades.
It can also help to study the robot’s underlying strategy to understand better the basis of its operation. If you did not create the robot yourself, you can go ahead and use the manual trade plat to trade and see if it is in line with what you may want. This is one of the reasons traders are always advised to really understand how the forex market works before employing the use of trading aides like a robot. Those that have no basic idea of how things work when trading currency pairs will not know how to study it to ensure it is efficient by their judgment.
THE PROS AND CONS OF FOREX ROBOTS FOR MT4
The five basic advantages of forex robots for MT4 or any other metatrader platform is as follows
1. It trades all round the clock. Being a robot, it has no need for rest like a human trader.
2. It trades without emotions. This enables it to follow the strategy exactly as it is.
3. With the forex robots, one can run a quick back test, especially on the MT4 platform
4. When there is even the tiniest market movement, the forex robot quickly reacts to it and makes appropriate decisions instantly
5. Despite its fastness, the MT4 forex robots are always precised in their actions. They are not prone to errors or mistakes.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.