Trading robots

Editorial note: archived material published in 2019. The information, terms and figures reflect the situation as of that date and may be out of date; this material is not an offer or a recommendation.

Trading ROBOTS

Before computers appeared, stock market trading was carried out by phone, charts were available in newspapers, and their analysis was done on paper. Traders invested years in understanding the markets and developing the most effective trading strategies.

With the appearance of computers, trading became automated and mathematical indicators appeared, increasing the speed of financial chart analysis.

Then, in 2009, the first trading robots appeared on the FOREX market - the so-called Expert Advisors (EA). From that moment, automated trading brought the currency market very high popularity, especially among institutional stock market investors.

Trading robots are lines of code written in the MQL4 programming language that ensure the execution of operations imposed by the trader, without the trader’s intervention. Robots can partially or fully take over the trader’s activity, taking over part of the routine operations.

Today the market includes thousands of robots, both with low risk/profitability and with high risk/profitability.

Trading robots remain a tool with significant risks: their performance depends on market conditions, and results achieved in one period will not necessarily repeat in another. Before using any automated trading system, you should understand the strategy it applies and the maximum risk you are taking on.

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Risk warning: This article is for information and education only, reflects the situation as of its publication date and does not constitute investment advice, an offer or a recommendation to buy or sell any financial instrument. Trading leveraged instruments (Forex, CFDs) and crypto-assets carries a high risk of losing your capital. Past performance does not guarantee future results. Before investing, assess your objectives and risk tolerance and, if needed, consult a licensed adviser. Details: Disclaimer & Risk Warning.