Positives and Negatives of Forex Bots

by A.D Paterson on 23/07/2010

In recent years people have been looking into trading in currencies, and they think up a number of extremely important questions, one of which is applying one of the many forex bots which are in the marketplace. Today I want to check out a number of the pros and cons of using a forex bot.

Fine, let’s begin. On one side there is the “Pros”, the points going for it:

The 1st point going for forex bots (robots) is the fact that they are entirely automatic.

The second supporting point is it takes away the risk of human error when opening and closing trading positions.

The third good point is how much time it helps you to save you since you will not be sitting down before a P.C monitor all day.

The 4th point in favor of forex bots are going to be the speed that the bot can get in and out of positions.

Last but not least, the 5th point is because you don’t need to know much when it comes to the process of getting into and out of trading positions.

And in an attempt to keep this balanced, there are the “Cons”, the reasons against:

The key point against forex bots tends to be that relying on a thing that is totally automatic isn’t always a good thing; they have an inclination to stop operating on occasions.

The second point against is that, even though you might make a few mistakes, if you’re manually trading on a forex platform, it’s still a great way of looking at the way individual trades work – just in case the forex robot does stop functioning.

A 3rd significant point against is that you will, usually, be using the bot to trade just one currency pair, although, doing it yourself, you could have a number of trades occurring on more than one currency pair at any given time.

4th point going against the forex bot is the bot will enter and exit trades based on how it is instructed. The key reason why it is a drawback is really because it does not taking into consideration the potential for a quick change in your favor.

Last, although not least is you really should know something about what’s going on with all the trades. It is usually a good idea to understand the reason why a bot is doing the things it’s doing, just incase it is not working properly.

So now we finally have a reasonable balance between the pros and cons.

Well, who won? What conclusions can we draw? Will bots do us more good than bad? Or, perhaps more bad than good?

I think we can say “Yup” to both questions! Forex bots certainly seem to be both good AND bad! It’s got to be left to you, the reader, to consider which argument, the good or the bad, outweighs the other when it comes to forex bots…

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