Can trading robots make a real profit?
Reading time: 16 minutes
Immediately answer: yes, trading robots can really bring real income. Moreover, they are able to act practically on the machine, and the trader will need to apply very little effort to maintain the correct automatic operation of the correctly chosen adviser. The most important questions: how and where to find such a robot?
Let’s deal in sequence. To begin with, we define what a trading advisor is, and also find out how it works.
What is a trading advisor?
A trading advisor is a software product designed for continuous analysis of current and past market situations, capable of using various technical analysis tools to find optimal situations for entering and exiting the market.
The advantages of robotic trading:
Transactions are opened by robots in a split second and do not require human involvement in the work.
Advisor will always work with the same efficiency, as he can not get tired.
Qualitative advisors have correct risk management rules that protect you from losing a deposit.
The robot trades for 24 hours, 5 days a week, which no man is capable of.
You do not need to share profits with a trading robot, as would be the case with human assistance.
Despite the fact that the majority of trading advisors on the market now use technical analysis and a variety of indicators to determine entry points, there are some developments that can analyze the news flow and make decisions based on fundamental factors.
There is a large variety of trading advisors. In order to make it clearer, let’s divide them into two categories: “simple” and “complex” robots. The first type of advisors usually focuses on using one or more technical analysis tools to find a trend, while “complex” advisors resort to a wider toolkit, combining hundreds of indicators, and they are able to get as close as possible to the concept of automatic earnings.
“Simple” advisors only help traders to determine the trend, find entry points, support and resistance lines. “Difficult”, on their own, are able to open and close positions, adapt to changing market conditions and require a minimum of trader participation in their work.
Myth number 1 – All trading advisors drain money
This is one of the most popular myths among novice traders. It has become widespread on the Internet due to the fact that several years ago various websites began offering free downloads of high-yield “secret” trading robots capable of generating up to 1000% of profits every month. Naturally, all these robots turned out to be a scam, and sites were created only for the sale of Internet traffic and advertising.
Grief-traders who were unlucky and who decided to download such an adviser turned to the analysis of history with the help of a robot and when they got a big profit (on history) they immediately started using it in real trading. They did not know that the advisor should be constantly optimized and tuned, as market conditions are constantly changing. In addition, most of these robots were made extremely unprofessional and generally could not be adjusted! As a result, traders very quickly lost money, in parallel creating a large amount of negativity about this in the network.
How it is in reality: It is easy to guess that the reasons for these failures were the traders themselves. Initially, due to the fact that they downloaded a low-quality software product. Further – due to the fact that they did not even try to set it up correctly and understand the work of the adviser!
Myth number 2 – On the Internet it is impossible to get a really high-quality robot
This myth is a consequence of the first. Disappointed with the first experience of working with trading advisors, pseudo-traders conclude that there are no good trading robots at all that can be profitable. And even more so to do it automatically.
How it is in reality: It is not. Yes, there are still a lot of fraudulent sites on the Internet that offer free downloads of trading advisors that guarantee an insane profit. However, there are also such sites where you can really download those very “complex” advisors who are able to work automatically and independently make the right trading decisions. The only difference is that most of these advisers will cost money. And pretty big. However, this does not matter, because usually the cost of acquiring a paid trading advisor pays off in 2-3 months.
Myth number 3 – Paid trading robots are not better than free ones.
Skeptics may continue to doubt that paid trading advisors are somewhat different from free ones. However, Analytics Online can say with confidence that this is far from the case