Advantages and drawbacks of expert advisors
Over the past 10 ages came a lot of online shops which trade trading robots (or expert advisors, or automated trading system). Automated trading systems began to use on the fx and funds. What is trading robot? Let’s see at this!
Expert advisor is an intricate program, which by virtue of the configuration changes are collecting info on the named parameters, produces processing and assay and, next, gives knowledge in a comfortable form for a businessman and performs several action. The main work of expert advisors – manage an autonomous dealing by purchasing and selling stocks or currency.
Expert advisors have tons advantages, we list the only ones:
1) The speed of knowledge forming – automated trading systems can simultaneously scan many of quotations.
2) Accuracy – in the mortgaged program trading robots are never wrong. This does not eliminate the original error in the program.
3) Lacks of emotion – automated trading systems do not know the discomposure and hesitancy.
4) Non-stop monitoring of the forex . Trading robots – not a broker, because they do not need rest.
5) Adjustable configuration, which can be reprogrammed at any time.
6) Automated trading systems are necessary for scalping.
But also automated trading systems have a solid set of drawbacks:
1) The only drawback – the difficulty of writing a soft that requires estimate all possible options. One omission or one error in the code and at a critical time automated trading system will inflict loss, instead of help.
2) Expert advisors have limited access to news. They operate using just the data exchange charts. Automated trading systems can not read a journal and review hearings. In these components expert advisors will always yield to businessman.
3) Trading robots are devoid of intuitinstinct are not able to accept non-standard solutions that can give a profit, or store deposit from ruin.
Let’s get to the trading robots from the mathematical point of view. Trading robot is a program that incorporates a secure algorithm of transactions.Foreign exchange , however as the stock is a random formation, the elementary probability characteristics of which change over time. Any automated trading system, which effective trading on a plot of time series with some statistical characteristics are likely not be effective to trade on the part of the time array with other numerical characteristics. So my opinion is: there is no especial automated trading system, who always makes a gain. Some trading robots work when there is the trend in the market. But other expert advisors are working, when the market sideways drive.
Now let’s sum up. Expert advisors are comfortable, self-respecting businessman should not ignore their advice. Synchronously, the businessman must keep in mind no one expert advisor will not replace him by his own head.
Come my website forex blog, where you can find knowledge about macd settings.
Processing your request, Please wait....
