What About the Hype of Forex Robots – Are They Worth It?

As the currency exchange market gets increased attention with the decline of the USD looming, so are the EA robots that attract the more sophisticated traders to the Forex game.

An Expert Advisor (EA) is a "robot" in the loose sense of the word. Robots beat humans at chess and other games, and they can also beat humans at trading. With an EA there is absolutely no emotion in effect – the most likely downfall of the human trader. An EA will observe the charts for you, implementing trades under optimal conditions and utilizing sophisticated strategies transparent to the user. This avoids the fear and greed factor, as well as lack of confidence, and inconsistency which are characteristics of most currency (and stock, option, futures) traders.

It is self-evident – over ninety percent of traders realize a net loss}. Traders are emotional humans, and like all humans, we suffer from greed, fear of loss and even fear of what other think. This impairs any traders ability no matter how experienced they are. As with all humans, in critical moments or key market conditions we lack surety, we have fear of what might happen and most importantly, we are typically inconsistent over 90% of the time.

The concept is similar to automobile manufacturing, where automotive companies use computerized robots to spray paint on new cars – a highly boring and repetitive task requiring a high degree of consistency. A human operator may spray too much paint here and too little…

by Chris J. Guli

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