Trading with Expert Advisors
We are talking about trading robots that will do all the work for you. At the same time, there are standard free Expert Advisors that bring little profit, and paid robots that promise a higher income. Which one to choose is up to you.
Advantages
- You can do other things, work or sleep, while the robot does its magic. You only need to check it occasionally to adjust the settings if necessary.
- You don't need the level of knowledge and experience required when trading on your own.
- Some Expert Advisors can generate significant profits.
- You can control your robot: turn it on and off at the right time, change risk settings and so on to adjust the program to changing market conditions.
- The human factor is excluded. The robot will not make decisions based on emotions.
- Depending on the Expert Advisor, the minimum deposit can also remain quite low. Martingale robots are an exception.
Disadvantages
- The risks of loss are the same as when trading on your own. No Expert Advisor gives a guarantee.
- Robots only use technical analysis. In the event of an important news release, the program can lose the deposit in a few minutes. It is crucial to control the robot at such moments.
- Expert Advisors cannot timely respond to force majeure situations in the market. It can also result in a complete loss of the investment.
- Most robots generate lower returns than self-trading.
Copy Trading
- The risks of loss are the same as when trading on your own. No Expert Advisor gives a guarantee.
- Robots only use technical analysis. In the event of an important news release, the program can lose the deposit in a few minutes. It is crucial to control the robot at such moments.
- Expert Advisors cannot timely respond to force majeure situations in the market. It can also result in a complete loss of the investment.
- Most robots generate lower returns than self-trading.
Copy Trading
This investing type is even more interesting. All you need is to select one or several professional traders whose trades will be automatically copied to your account.
Advantages
- Trading will take place automatically, without your participation, while you are at work or with your family.
- You personally set the risk level for your account. In this case, transactions will be copied to your account taking into account your wishes.
- You still have control over your account. If you think a trade is too risky or unprofitable, you are free to close it.
- The signal provider performs all transactions on his account with personal funds which means he is interested in the profitability of his signals.
Disadvantages
- This service requires a minimum deposit. Depending on the signal provider, the amount can be $100- $1,000.
- You will need to get at least basic knowledge of trading strategies in order to choose the right signal provider and adjust the risk level on your account.
- This service is paid. You will have to pay a commission for each open trade or a percentage of the profit - depending on the terms set by the signal provider.
- This service requires a minimum deposit. Depending on the signal provider, the amount can be $100- $1,000.
- You will need to get at least basic knowledge of trading strategies in order to choose the right signal provider and adjust the risk level on your account.
- This service is paid. You will have to pay a commission for each open trade or a percentage of the profit - depending on the terms set by the signal provider.
Copy trading is optimal for investors who already have some experience in Forex trading. The knowledge gained will help you choose the right trader and set up your account correctly.
If you are an absolute beginner or couldn’t understand Forex trading at all, then you better turn over your account to professionals. We will discuss how to do this in the next article.