Trading robot, presentation
Robot trading refers to brokerage systems via the Internet. It is intended to help traders determine whether to sell or buy a currency pair at a specific time and to take the psychological side out of trading. These bots are specialized computer programs designed to perform a variety of functions, from managing trades to informing the trader.
The trading robot is based on artificial intelligence. Most of them using the MQL scripting language, they make it possible to generate trading signals, but also to carry out transactions. Today, it is possible to find several models of Forex robots, such as those integrating trading rules. The simplest currently remaining to opt for an automated system. However, it is still necessary to carry out research before investing, in order to ensure the reliability of the source. Backtesting will in particular test the capabilities of a trading robot.
Artificial intelligence and trading
In 2020, more than 60% of transactions over $10 million were made through algorithms. However, the market for algorithmic trading should grow further by 2024, further strengthening the place of artificial intelligence (AI) in this sector. Among the various ways to use AI is deep learning. This consists of the use of analytical tools seeking to reproduce human decisions. These are then used and made more precise by the use of algorithms.
Thus, traders have the possibility of benefiting from scientific advantages, without having to resort to in-house expertise which would be more expensive. On the other hand, predictive programming makes it possible to determine the probabilities of decisions related to trading. An ecosystem is then created for the benefit of traders, who rely on technology for their investments.
Automation in trading
A trading robot today can be configured in a variety of ways and depending on the results a trader will be looking to achieve. Thus, it can be fully automated. In this case, transactions are carried out electronically on behalf of the trader. A set of rules will be determined beforehand. In parallel, the bot will generate stop-loss orders or trailing-spots independently. Another option is to turn to a semi-automatic system.
In order not to miss opportunities, a program is then used to study the foreign exchange markets. The system, based on a pre-programmed strategy, sends signals to its user. These can be entry prices as well as stop-loss orders. It will then be up to the trader to decide whether or not to attempt a trade. Anyway, these two systems will allow him to free up time for other tasks.