Trading robots: what is the secret of success?
- upkingbot
- Sep 7, 2022
- 4 min read
From manual telephone orders to automatic trading systems - the development of trading has a long way to go. In today's world, specialized computer programs generate trading signals using mathematical algorithms. Known as "Forex trading robots" or "expert advisors", they help increase efficiency and discipline in trading. And also get rid of prejudices or emotions in trading. But not all jobs are equally effective. How to choose a robot? Read on!
Types of trading robots
Trading programs work either on the axioms and principles of mathematical probability, or on the basis of technical indicators. There are several types of robots.
Trend advisors - as the name implies, follow the market trend and open relevant deals. Act on the basis of programmed trend indicators.
Counter-trend jobs are based on oscillators. They are able to bring profit to their owner in market conditions where there is no trend specified in the settings.
Multi-currency robots trade on the Forex market. Their advantage is that they can work with several types of currency pairs at the same time. A special option allows you to install the desired number of tools.
Scalper robots operate for short periods of time during the day. A large number of trades are opened at the same time, and each brings a small profit. However, the total income is quite high. In terms of risk, Scalpers are the most dangerous.
Combined advisors are managed simultaneously by several strategies. Several algorithms replace each other, depending on market conditions. It all happens automatically.
Trading platforms
As you know, in order to make money in the financial markets, you need to download and install a trading terminal. The most popular platforms in the world are MetaTrader. Beginners prefer version 4 because of the simple and clear interface. More experienced players choose MT5 due to its wide functionality.
Trading robots integrate with both MT4 and MT5. Today, there are thousands of automated trading programs on these platforms. The core of the platform is MetaQuotes Language vol.4. It is a dynamic programming language designed for writing trading strategies. If you know this language, you can create a robot yourself.
On the MetaTrader platform, there is a platform where you can buy and sell custom scripts, indicators for receiving trading signals, and, of course, robots. There are also so-called constructors, in which you can assemble an assistant yourself, only if there are trading parameters.
Why are robots so popular?
Expert advisors can not only provide signals for opening a deal, but also perform financial operations instead of a trader. This is the difference between semi-manual and automatic systems. Such programs save time, allow you to earn online, anywhere in the world, without unnecessary worries and emotions.
In fact, any strategy can be programmed into the robot, as well as use most financial assets and any type of account, even micro Forex.
The assistant can be improved to infinity, constantly improving and optimizing its work.
Trading in the financial market requires certain knowledge, such as the ability to conduct technical market analysis. Or consider fundamental factors in the economy. It used to take years to learn trading. Now, thanks to innovation, buying a robot puts you much closer to your goal. Basically, it's an investment that brings passive monthly income.
What to pay attention to?
The profitability of the robot and the level of drawdown. Not only the profitability is important, because downward fluctuations can bring losses to the trader. The drawdown of the robot should be minimal (up to 5%), and the profitability - realistic (up to 10%).
Back-testing. Any program for automatic trading goes through efficiency tests consisting of several stages. If you decide to buy a ready-made trading bot, the developers must provide you with test results.
Demo account. Do not be lazy to test the capabilities of the advisor on a demo version of the account, without risking real money. By the way, to use the robot, you will need to open a brokerage account. As a rule, robot developers have corresponding partners. But you can choose a broker yourself.
Read user reviews about the product. They can be found on the official website of the developer, as well as third-party resources, such as thematic communities and forums for traders. Before investing money in a robot, make sure of its reliability and efficiency.
Remember that there are no guarantees or promised returns when trading the financial markets. This rule applies not only to robots, but also to other tools. The risk of financial loss always exists. And you should avoid advertising that promises you 100% profit.
UPKingbot is the best solution for beginners
UPKingbot is a multi-currency robot-advisor with combined algorithms. According to back-testing, the drawdown on the account is only 4%. Profitability varies between 5-8% every month. The program operates on the basis of technical indicators. All settings work by default, you only need to press the start or stop button.
UPKingbot reviews especially note cooperation with proven partners. By choosing this robot, you get recommendations on the most reliable brokers for opening an account.
UPKingbot looks for trading opportunities 24/7 while the forex market is open. So you can use the profit making strategy to the maximum! Updates to the bot happen regularly, all of which are completely free for those who have already purchased a UPKingbot license.
You can order a trial period of the program to make sure of its effectiveness. The actions of the robot are relatively safe, as it incorporates the basic principles of risk management. By downloading free robots, you are putting your own capital at risk. By purchasing a license for a quality product, you are making the right investment!