Autopilot Trading and How It Works

Autopilot Trading 

Autopilot trading is an activity of buying and selling currencies or forex, the process is carried out automatically with the help of a robot or what is known as an Expert Advisor. 

Expert Advisor is a computer program that was developed to trade automatically without user assistance.

The way it works is that the Expert Advisor (EA) will look for opportunities such as open trades to make buy and sell transactions. 

EA will also close the transaction at the time it thinks is appropriate.

Interestingly, Expert Advisors in trading will work actively for 24 hours so you don't have to worry about losing the right moment to make buying and selling transactions.

You can also relax while waiting for the benefits that will be obtained. 

The goal is to reduce existing risks and maximize profits without having to manually monitor them.

To better understand and don't just trade on autopilot or trade automatically, here are some things that you must pay attention to before choosing.

How autopilot trading works

As already explained, when trading on autopilot is automatically carried out by a robot called an Expert Adviser.

This robot will automatically do several things, such as:

  • Analyze price and market movements.
  • Executes buy and sell for forex trading on autopilot.
  • Manage fund safety in forex trading on autopilot.

Trading on autopilot will analyze and manage forex trading funds on autopilot for 24 hours. So, you can sleep well.

Advantages and disadvantages of autopilot trading

Even though it looks tempting because you can trade automatically, you still have to know the advantages and disadvantages of trading on autopilot. 

Don't let you only see the good things.

Advantages of autopilot trading

  • The machine used is multitasking and can receive thousands of instructions per second to find the best trading opportunities.
  • Able to execute trading opportunities well.
  • The machine will work for 24 hours without stopping and remain stable. 
  • Decision making is not based on emotion so when doing it according to analysis and trading opportunities.
  • The EA robot's performance is also very consistent and can be tested and works according to the standard programming formula.
  • Its features continue to evolve according to market dynamics, such as the news filter feature to avoid brokers who like SL-hunting.

Lack of autopilot trading

  • The cost is more expensive because you have to pay for the virtual private server rental.
  • Don't just use a trading robot and it's good to know information about forex trading and market conditions so you can know when to take over this trading job.
  • Not all markets can be overcome by EA robots because EA robot programming has been designed to think linearly. So, if changes occur, the EA robot cannot be relied on.
  • Not all brokers permit to use EA robots. Because it could affect the broker server that is so down.

Benefits of choosing a forex trading

There are many other benefits if you choose forex trading on autopilot, namely:

  • The opportunity to get a big profit.
  • You have the opportunity to get a profit when market conditions go down or rise or it can be called a two-way profit.
  • The process is fast and easy because trading can be done for 5 days a week and can be done anywhere.

Tips for choosing autopilot trading

Now there are many offers related to automatic trading, but don't immediately be tempted by the lure of cheap fees and big profits.

Because there are already many fake autopilot forex trading applications on the market. Instead of luck, you are lucky. 

Just looking at user testimonials is also not a guarantee that the forex autopilot trading offered is reliable. 

So that you don't take the wrong steps, here are tips for choosing trading automatically to stay safe.

  • Robots that are legal and have been tested for years will usually post their robot results on myfxbook and fxblue. Before buying, it's a good idea to ask the results of the trading robot.
  • Do the test by doing a forward test. The forward test is a test of the EA robot in the real market so that we can see firsthand the accuracy of the results. At least the robot has been tested for one year.
  • Don't want to accept the robot backtest results even though they have been tested for years. Because backtests are usually tested with simulations and past data so the results are not accurate.
  • Avoid choosing robots with martingale and averaging trading techniques. Because the floating position is minus, the lot will continue to be added until the position is profitable.
  • Drawdowns or losses suffered by robots can not exceed 40 percent. Because if more then indicates the robot is too risky.
  • Choose a robot that has collaborated with a credible and regulated broker.

Features of autopilot trading scams

The following are the features of automated trading scams.

1. Promises fantastic results

You must be suspicious if the automated trading offered promises fantastic and unreasonable results.
For example, the price for the robot itself is $ 600, but you can trade with $ 100 and you are promised a profit of $ 1,000 within one month.

If there is an offer like that, it's good to be careful.

Because if it was true that the profits from forex trading were that much, there wouldn't be poor people in this world, right?

2. Always promise a profit

Even though you use a robot that always works for 24 hours, there is no guarantee that trading will automatically continue to profit, including when you use a forex robot in trading.

Because robots are still machines whose way of thinking has been programmed. The control is still in your hands.

So, when someone promises to provide continuous profit, it's better not to believe it.
Because trading has a high risk too.

3. Does not display the results in myfxbook and fxblue

Scam trading robots usually do not have an audit for their work that is displayed in a verified place, such as myfxbook and fxblue. 

Besides, usually, they also cite the results of the backtest, which is a test with old data or just a simulator.

How to prevent an autopilot trading scam

Don't get lulled by trading robots that can do anything. Because a trading robot could be infiltrated by a third party program that can steal your data.

Therefore, you need to know more about trading before finally using this trading. 

Here are tips to prevent automated trading scams :

1. Check the official permit of a brokerage company

Before buying, make sure the broker you are using is trusted and legal.

This is so that the trading you are doing is safe and someone is responsible if things happen that are not desired.

2. Check the brokerage capital deposit account

You should also check when depositing capital for trading transactions, whether to use a segregated account or not.  

A segregated account can be a guarantee that your funds are safe as a customer.

3. Pay attention to the services provided

Pay attention to whether the brokerage service you choose also provides services such as education that you can learn in the world of trading.

If they don't give you anything, it's a good idea to be careful.

4. Try making your trading system

Even though all transactions are carried out by sophisticated robots, you still have to monitor them because the robots might do their job wrong.

Instead, try to create a trading system according to your character in transactions by doing:

  • Specifies the time-frame.
  • Determine trend indicators.
  • Set tolerance levels or risk limits.
  • Determine the right time to open and close positions.

Question and answer

What is trading autopilot?

Autopilot trading is an activity of buying and selling currencies, the process is carried out automatically with the help of a robot or what is known as an Expert Advisor.

Expert Advisor is arguably a computer program that was developed to trade automatically without user assistance.

Is trading on autopilot safe?

Safe if you use a robot that has been tested and trusted. Make sure you see the results on myfxbook and fxblue.

Tips for choosing autopilot trading?

Here are some tips for choosing autopilot trading.

  1. Robots that are legal and have been tested for years will usually post the results of their robots on myfxbook and fxblue. Before buying, it's a good idea to ask the results of the trading robot.
  2. Do the test by doing a forward test. The forward test is a test of the EA robot in the real market so that we can see firsthand the accuracy of the results. At least the robot has been tested for one year.
  3. Don't want to accept the robot backtest results even though they have been tested for years. Because backtests are usually tested with simulations and past data so the results are not accurate
  4. Avoid choosing robots with martingale and averaging trading techniques. Because the floating position is minus, the lot will continue to be added until the position is profitable.
  5. Drawdowns or losses suffered by robots can not exceed 40 percent. Because if more, indicates that the robot is too risky.

Can you choose autopilot trading for beginners?

We recommend that you don't use automatic trading when you are a beginner in the forex world.

It takes understanding and complete information about trading automatically, considering the risk is quite high for a beginner.

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