Algorithmic trading provides an exciting way of earning profits in the online Forex market. Algo’s or a forex robot will save you loads of time analyzing the markets or sitting in front of your computer screen to monitor the markets. Most investors understand that trading is very time consuming and could lead to stress, which could magnify losses instead of profits. Current Automatic trading technologies have made trading easier, less risky, and increased the chances of better performances.
Basically, an expert advisor for MetaTrader 4 works by coding predetermined strategies or rules for making trade decisions. The rules are programmed on an expert advisor (robot), which it uses to enter and exit trades fully automated. Robots are capable of making trade decisions in a way that humans can’t. Robots can effectively scan the markets looking for trade opportunities with high levels of accuracy. For example, if you have a successful trading strategy that relies on indicators, candlestick patterns, support and resistance levels, you can code it in a robot and just sit back and allow the algorithm to do the work for you. Furthermore, if a robot is programmed to make a sell order whenever a currency pair reaches a resistance level, it will obey those instructions always. Time saving and reducing human errors are the main reasons why investors actually use robots.