The popularity of Forex industry is growing with each passing day, and beginning traders hope that their trade on the financial markets will become one of the main methods of receiving high incomes. But the reality is different from the things you see in the internet-advertising. If you want to succeed on Forex, you have to spend years studying all its basics, but the point is that the human nature is arrange in such a way that he/she usually wants to get everything at once. Nowadays, there is an optimal solution to get profits on the Forex market – special robots that enable autotrading.

What are advantages and disadvantages of Forex trading advisors?

The Internet is full of various profit-making Forex advisors and the websites of many brokers as well. There two main types – fully-automatic and semi-automatic advisors. The later variant just provides opening/closing signal, while fully-automatic advisors independently carry out trading and perform operation with orders based on the trading signals received.

Any trader that uses Forex trading advisors has the following advantages:

• Shortening of the period he/she spends in front of a monitor;
• No high-stress environment;
• Exact trading algorithm.

Professional traders highlight that Forex trading robots has the following disadvantages:

• No possibility to take into account all market forces, fundamental and graphical analysis;
• The fact that trading robot has not opportunity to see the big picture of the market, so it only follows its basic code.

Trading robots could and should be used for the Forex trading, but it’s not the best idea to count on them in full: a trader should always check its account status and the amount of orders opened.

Things to know before you start using trading advisors

The pride of place goes to the sources from where traders get their robots. You can easily download free-of-charge Forex advisors in the Internet, but such trading robots should in no condition be used for the real-funds trading. It is necessary to test such a robot on a demo-account or with a special trading strategy tester in order to watch the way it trades, and only then use it for real-accounts with small deposits.

Important! Even a be-paid-for advisor should first of all be tested on a demo-account before you install it and launch with a real-account.

Another important thing to pay attention when you trade with an advisor is the time-frame it uses. The lower time-frame is, the more risky its strategy and the higher your profits are. If your advisor opens many orders under the small time-frames, this is what is called an aggressive trading. You can frequently meet such advisors-scalpers in the web, and sometimes their description says nothing about the aggressive trading.

When working with a trading advisor, you should remain attentive and regularly check if there are any developer’s updates available for it. If your trading robot is already more than one year old and it hasn’t still been optimized or updated, it could become a great cause for trading losses in future. The financial market is developing and all responsible trading advisor developers try to issue updates for their products at least one a month. You can find out about your robot release date by watching the code (in case it is open source) or from the product description while adjusting it in the MT4 trading strategy tester.

MT4 advisors have different profitability levels. The profit ratio is usually 20-30% per month for a high risk degree. In case its developers promise you higher profitability, the trading process with this advisor will be extremely aggressive and may result in loss of the entire deposit. The best practice for a trading advisor is when it brings 5-10% per month. Such characteristics demonstrate moderate risks and stable incomes.

When purchasing a robot, check the availability of its technical support. In case there is no technical support, don’t even try to deal with the company that offers you to buy its robots.