Forex trading robots are often referred to as expert advisors (EA). This robot is an electronic tool that works itself to find open trade, open sell, and buy opportunities in the forex market.
The forex trading robot knows when to sell and buy. The robot will conduct its own buying and selling transactions without having to get orders from traders.
This is because robots look for signals for trading, send orders to open positions, and manage money management. All in accordance with the software recorded in the program.
With all these advantages, forex trading robots will certainly be very tempting for novice investors. However, investors should also be careful.
Not a few trading robot platforms are the ends only under the guise of cheating and become a big investment. Moreover, many trading robot platforms that lure people with large returns, minimal risk, and no need to do trading activities at all.
Analyst and investment practitioner Desmond Wira said, based on his search, there were some irregularities on the trading robot platform.
Among other things, the high ratio of profits to losses printed by trading robots. There is no absolute 100% gain.
Then, the practice of trading robots that can only be operated in certain brokers. In fact, with the Expert Advisor (EA) system, trading robots should be used by other forex brokers.
“This is compounded by the legality or unclear regulation of brokers, so that when fraud occurs, the user’s money will be lost all of them,” said Desmond.
Another irregularity, the scheme of member get member or money game style ponzi scheme to provide benefits used by various trading robot platforms. Logically, when trading robots continue to be used, there is no need to use member get members.
This is considered to indicate that the trading robot platform requires money from new members for its operations, like other ponzi schemes. “I advise staying away from these offers as they tend to be unsafe or dangerous,” he said.
While Cryptowatch Co-founder and Smart Money channel manager Christopher Tahir added, the use of trading robots will make our accounts controlled by the trading robot through the Application Programming Interface (API), so the potential for security gaps becomes very large.
Therefore, he reminded investors to use trading robots that have been tested for quality. However, investors should still know how to make decisions, what risk management looks like, as well as the level of security.
“For this trading robot itself is like a user has an assistant who does his regular work only. Its main function is to eliminate the emotional side of the trader with the aim that decisions are made objectively rather than subjectively,” christopher added.
However, if the robot is issued by the relevant company, he thinks this becomes full of conflicts of interest. Moreover, if the trading robots promise bombastic profits.
“When the calculations are unreasonable for the robot provider to benefit, so it is questionable about its validity. Sellers or marketing trading robots that make profits like this should be acted upon, “added Christopher.