Automated trading and Forex robots have helped thousands of traders worldwide achieve their trading goals.
Forex robots are designed to work on the set of instructions that they follow to conduct market research and open or close trades.
Since these robots are built to perform, they tend to deliver more accurate and error-free results than manual trading approaches.
But, as we know, nothing is perfect in this world, while being an extremely profitable and result-driven tool, automated trading comes with its own flaws.
In this post, we’re going to highlight some of the main flaws of Forex EAs that you’ll witness if you fail to choose the right EA for your trades.
Also, we’ll help you understand how you can choose the best Forex trading robot 2021.
Using Expert Advisors in Forex Trading
Today, there are hundreds of thousands of Forex EAs available on the market. Also, they come with the same list of features and claim to deliver more or less similar results.
But the truth is that not all automated EAs deserve your time and attention. Here it is important to understand that the product you’ll choose for your trades can make or break a deal for you.
Below you will find some of the main flaws of Forex expert advisors that can ruin your entire automated trading journey.
Poorly coded by traders without coding experience
As mentioned above, Forex EAs depend on codes or instructions that direct them to perform a specific task.
It takes a great deal of research and technical knowledge to develop a set of instructions that can fetch real-time trading results. You cannot expect great results if the codes given as instructions are not research-oriented.
If the trader is inexperienced or his only objective is to make some quick cash instead of providing real value to the user, he’ll end up producing something that can easily do more harm than good.
To avoid this problem, it’s important to choose a robot that comes with the best-automated features. The product benefits must be well highlighted by the trader. Also, they should be able to answer your queries and clear your doubts without feeling offended.
Bad strategy developed by a bad trader
A well-developed trading strategy is key to long-term growth and success. The purpose of automated robots is to exclude the need for human intervention. This means your entire trading journey will depend on the strategies and instructions coded by the programmer.
This is especially critical when you’re completely relying on Forex EAs to conduct trades on your behalf. As ill-coded robots are not capable of conducting effective market research, they’re less likely to make the right decision at the right time.
Needless to say, when you don’t get an opportunity to grab the most profitable trading opportunities at the right time, your overall trades suffer significantly.
Small sample size trading results
As competition in the automated Forex space is already vying, you may want to invest in a robot with a proven track record of multiple years.
The biggest hurdle with unreliable Forex EAs is that they showcase just a sample size trading results, making it difficult to track their previous performance.
All can be avoided by picking the right robot
One of the best ways you can avoid these issues is by choosing the right Forex EA for your trades.
There are certain things you should pay attention to before you choose a robot.
Choose EA with Years of Proven Track Record
First and most importantly, choose a robot that has a proven track record. You can easily monitor performance using independent websites such as Myfxbooks.
Apart from that, you can also review trader’s websites and reviews to see how well those options are performing in the Forex market.
Choose EA that Offers Solid Trading Strategy
The next thing you need to pay attention to is the trading strategy. Make sure your chosen Forex EA comes with a solid trading strategy that is consistent with your individual trading style.
Always Start with a Free/Trial Option First
It would be great if you choose a robot that comes with a free trial option. You can use the free version for some months to see if it is going along with your trading style. You can simply jump onto the paid version once you start seeing results rolling in.
Discuss Your Concerns with the Support Team
Last but not least, clearly discuss your concerns with the customer care. Ask questions and clear all of your doubts before you put in real cash into the business.
Despite the fact that automated trading is the need of an hour, Forex traders are still not able to benefit 100% from the automated solutions.
However, you can increase your chances of success using the automated trading approach if you pay attention to the above-discussed aspects.