Exchange robots for traders in the stock market: reviews

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Exchange robots are automated software, the main function of which is to carry out trading operations on the exchange. In addition, such tools are called trading advisors, experts, or succinctly - robots. These programs are also called mechanical trading systems, or MTS for short. Today, such instruments work in most financial markets such as Forex, RTS or the stock exchange. Every year, the part of automated trading operations in the total volume of transactions increases. For example, on the RTS, from 35 to 60% of daily trading activities are carried out by exchange robots. In Western countries, these figures can reach 90%.

Which is better?

It should be emphasized that in this case we are not talking about the fact that automated systems are smarter or more efficient than humans. This issue is quite controversial andnot yet fully explored. The fact is that mechanical trading systems have a number of advantages that a trader who trades in manual mode does not have. Among the well-known and well-established platforms that allow automated trading, we can name Forex4you and Alpari. Next, the classification of these mechanical systems, their advantages and disadvantages will be considered.

Classification of exchange robots

There is no general classification of exchange robots. Nevertheless, these tools are divided into several conditional types, which allow you to better understand the essence of their work. So, mechanical trading systems differ in the style of trading operations. In this regard, there are scalpers or pipsers, trend tools, reversal and other trading robots. In addition, there are fully automatic systems and semi-automatic. After the initial setup by the trader, the automatic robot for exchange trading performs operations completely autonomously. At the same time, semi-automatic systems only accompany and close the transaction, and a person opens it manually.

Martingale Robots

In addition, exchange robots are divided into those that use the Martingale concept and those that do not. The former are fairly aggressive systems that, when they lose, increase the bet and are able to easily lose the investor's deposit. Judging by the reviews, trading robots that do not use the Martingale concept, butin this case, showing good results in relation to profitability, are effective advisers. They apply some market patterns in their activities, which makes them less risky. Such robots are perfect for stable trading activity, designed for the long term.

The above does not mean at all that Martingale robots are not able to make good money for a trader. Reviews suggest that they can also be effective, but when using these systems, it is very important to properly manage money. In other words, the trader will be required to timely withdraw from circulation a part of the profit received, so that if the deposit is lost, all funds will not be lost. As an example of a robot that successfully works based on the Martingale concept, we can name the TrioDancer Expert Advisor.

Strengths of exchange robots

Among the advantages of mechanical trading systems, there are some of the most important ones. For example, strict adherence to the trading algorithm set by the trader. Exchange robots will not deviate from the settings. In addition, they consistently perform the actions for which they are programmed. How does an exchange robot work? The system does everything thoroughly and methodically. What can not be said about a trader who can rush about, change the trading plan on the go and perform other emotional actions.

Another advantage of the robot is just the lack of emotions and spontaneity. Such systems are not affected. A person is capable of experiencing fear, succumbing to panic, being greedy. All these qualities significantly affect the process and results of trading. The car doesn't have it.

Also, the advantages of mechanical trading systems include high speed and efficiency. Not a single trader is able to process such an amount of information with high speed as an exchange robot (this is confirmed by many reviews). Only automated Expert Advisors can open or close a huge number of trades almost instantly. Such abilities of robots are successfully used when working on financial platforms, primarily on the stock exchange or the futures market.

Disadvantages of exchange robots

The disadvantages of automated trading systems include the need for permanent control over the trading activities of robots. Any, even the smartest car, needs to be constantly checked. This is due to the fact that the characteristics of a particular market change, important economic or political news appears that have a serious impact on strategies for exchange robots. If the settings of automatic advisors are not corrected in time, their activity may become unprofitable.

Another disadvantage of using such systems is the need to pay for the work of a dedicated VPS server. On the one hand, today renting a good server costs an insignificant 5-10 US dollars per month, but on the other hand, it is still a financial cost. They must be taken into account whencarrying out trade. Thus, the profit from mechanized trading should cover the costs of acquiring a robot and renting a server.

Cost of paid exchange robots

Among other disadvantages of using automatic advisers, reviews sometimes call too high a price for such pleasure as an exchange robot. How much does a good mechanical system cost? The cost of some exchange robots reaches 500-1 thousand US dollars, and often exceeds these figures. Their acquisition is not always advisable, because despite the guarantees of the seller or the developer of the program for the return of invested funds, you can easily buy a pig in a poke. By the way, it is worth noting that there are many quite good automatic advisers on the Internet, which are distributed free of charge, and at the same time are able to bring a constant profit to the trader.

Choosing an exchange robot

When choosing a specific mechanical trading system, it is important to pay attention to the algorithm of the exchange robot. In addition, you should analyze the parameters of the program, the rules for opening and closing positions. It is also necessary to pay attention to the presence of a normally configured mechanism that limits financial losses. Otherwise, trading performance will be difficult to predict.

Along with the above, there are a few more aspects that will help you choose a good exchange robot. So, you need to test the system in operation,assess its reliability. The adviser must function strictly in accordance with the plan chosen by the trader. In addition, working with the program should be easy and understandable. This applies to the interface, settings and other system parameters. It would be nice to say that the abundance of windows and different buttons only complicates the task of managing the program. Another important point when choosing an exchange robot is the ease of installing software on a PC and making changes in the trading account application. The simplicity of these operations will allow you to use the adviser on any computer, as well as quickly change the brokerage account.

Reviews suggest that you should beware of buying exchange robots from little-known developers or individuals. Savings in this matter can turn into unnecessary difficulties when installing the program, its configuration and operation. In addition, you can lose money and not get the desired financial result. It is recommended to choose those developers who provide training on how to use the system and good, fast and constant technical support for users.

Afterword

In conclusion, I would like to emphasize once again that the use of exchange robots is a great chance to try yourself in automatic trading and regularly receive a good income from their activities. However, in this case, it is still important that the trader has an understanding of the processes and periodically adjusts the program. The use of automatic solutions requires a balanced and responsible attitude. With this approach, the investor will definitely make a profit. At the same time, don'tforget that the success of working in the markets largely depends on the broker chosen by the investor.