Robot Trading Truth
Robot trading, also known as automated or algorithmic trading, has become very popular in the Forex market. Many companies and online marketers claim that their trading robots can make profits every day with no effort from the trader. They promise “set and forget” systems that will generate income while you sleep. But the real truth about robot trading is very different.
A trading robot is simply a computer program that follows a set of rules to open and close trades. These rules are based on technical indicators, price patterns, or mathematical formulas. A robot does not think, understand news, or feel emotions. It can only do what it is programmed to do. This means when market conditions change, a robot may continue trading in a way that is no longer profitable.
Many robots are tested on past market data and show great results, but real market conditions are unpredictable. Slippage, spread changes, news events, and sudden price movements can easily break a robot’s strategy. What worked in the past may fail badly in the future.
Another big issue is that most robot sellers make money by selling the software, not by trading with it. If a robot was truly highly profitable, it would not be sold cheaply online.
Robot trading can be useful when built and monitored by professionals, but it is not a magic money machine. Smart traders always stay in control.
