Forex Trading Robot
Globalization has brought with it various fields of investment and one of the most exciting and lucrative field of speculation is the foreign-exchange or forex. The forex trading markets deal with buying and selling of the various global currencies based on different inputs of the market and the rising and the falling of various economies.
With the advancement in the field of computers, there are various forex trading robots available which can be bought to automatically study the market situation and take decisions as to when to buy or sell the different currencies and incur profits. Broadly, the types of forex trading robots can be classified into the following two categories.
Fully Automated Forex Trading Robots
These softwares come with an in built algorithm which defines the way in which the robots work. The algorithm allows the robots to gauge the market situations to decide on what type of deals to be made. While some of these robots allow the settings to be changed and tweaked as per the user’s requirements, investments and risk taking ability among other considerations. However, overall the software takes complete decisions about the investments.
Signal Based Forex Trading Robots
The complete Forex market is based on a lot of inputs which come from different sources and at different times in the day. Moreover, the patterns are sometimes so complicated that the person who does forex trading manually will not be able to grasp the full situation. As a result, there are various signaling robots to help make these decisions. These robots can be modified to keep track of the streams the person maybe interested and based on the robot’s algorithm, if an event happens; the robot sends a signal to the trader. Unlike the automated system, in the signal based method, the trader takes the final decision and not the forex trading robot.
Both these robots come with their own pros and cons. While the fully automated forex trading robot is self sufficient in making the deals and does not require any external inputs from the trader, it also removes the trader from the position of making a decision and hence may act in a way the user would not want it to. On the other hand, the signal based robots only provide signals to the user, which the trader must understand and interpret to make decision.
Hence, a person should carefully gauge the two options and then decide on which option would be more suited to his needs.