3 Reasons Why You Should NOT Use Expert Advisors

Traders live in a world dominated by automated trading. But about two decades ago, robotism or robotism was acting directly and directly from humans, especially if it was about trading. Now the situation has reversed, and the robot is the one who controls and leads the way and we follow it. However, I can give at least three reasons to refute and refute the idea of ​​using automated trading or expert advisor program when it comes to trading on your own Forex Scorpio Code account.

Virtual server costs profile

The expert consultant acts as a robot with instructions to buy or sell when certain conditions are met. It is relatively easy to program where anyone with a background on IT can adapt to MetaEditor or any other programming tools available for free.

Before preparing an expert advisor program, one needs a strategy that is already tested. This can be done in two ways: either by examining a pre-test strategy in the light of historical data and data to see what kind of results in past years / months have been achieved, or by tracking hypothetical trading centers on paper for this strategy for a while to see if it is feasible.

When both steps are completed and the Expert Advisor program is set up, we must understand that it is not enough to apply it on the chart / broker, since while the trading / computer platform is closed, the expert advisor program simply stops trading. To work around this problem, you will need a VPS or so-called (Default Private Server). .

The VPS server acts as a real computer in a separate location that ensures that the trading platform is not closed during the week. What’s more, virtual server never closes unless there are some unavoidable technical failures.

To be able to access the default vps server, you must open an account with VPS providers, pay monthly subscription fees based on server needs, and then follow the instructions on how to optimize the use of these servers.

Using the VPS is a good way to overcome platform problems, but there are monthly costs that an individual should take into account as they are deducted from the profits of the expert advisor program, if any!

Implementation and price differentials

Trading using an automated trading program or an expert advisor still needs an intermediary. Trading intermediaries are very different. Among these differences are price differences and fast execution of trading orders.

For example, when a NFP report is issued in the United States, if the expert advisor is programmed to open or close a transaction during the issuance of NFP or after its issuance, the level of entry or exit will be different and not Results match those in the test.

Execution of a trading order is also an important topic. Let’s say that the robot has a stop loss for a ten point trade below the current market price and an important economic news has been released. Given the use of ECN (Electronic Communications Network) brokers, it is virtually impossible for the broker to complete the trading order at exactly the required level. Therefore, the actual closure would be far and away. So again, the test results will not correspond to reality.

Forex Scorpio Code

Forex Scorpio Code

Absence of market conditions

However, none of the above is a major challenge to the Forex Scorpio Code Vladimir Ribakov automated trading program expert advisor compared to the lack and absence of market conditions. What does this mean?

A forex broker is obliged to execute a trading order if there is a market, meaning that if you sell, there must be someone who buys, or if you buy someone must sell. This is the market. What if no one buys what sells or does not sell what you want to buy

It can be said that this is not likely or possible in the Forex trading market, but recent history tells us that things do not always go the way they are supposed to be.

In January of 2015, the Swiss National Bank (SNB) cut EUR / CHF at 1.20, leading to unprecedented chaos in the forex market. A number of trading brokers went bankrupt, deals were suspended, and the entire industry was shaken to the bone.

On the assumption of such an event and you have an expert adviser who buys EUR / CHF before the price falls to 1.20 lows and the stop order has been tentatively below 1.20, then a trading broker in the world will not be able to help you, since there is simply no market after it is floated.

For a few minutes (5-10 minutes) nobody knew the real value of the EUR / CHF pair and how there was no market. There were no buyers for sell orders to close their positions. So the expert advisor will have to carry out the purchase orders until the market is formed again. .

The problem is that the market formed around 0.8700, the level at which the expert advisor was supposed to close the positions. Which means that the Forex Scorpio Code trading program of the expert adviser has abandoned the gains of the previous possible years, “and is still unable to offset the loss, which shows that online trading carries risks when trading using the expert adviser ..

Summary
Review Date
Reviewed Item
Forex Scorpio Code
Author Rating
51star1star1star1star1star