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Forex Tips: The Pros and Cons of Trading Bots

Forex is different from other markets because of its liquidity and participation levels. Because of the number of available pairs, signals can be overwhelming for manual traders, especially in lower time frames.

As such, more traders would prefer to deploy Forex Trading Robots. These 'bots' often automate trading decisions. However, they can be programmed to perform other functions, not just trading.

The MT5 trading portal supports trading bots and automated trading. From these 'Expert Advisors,' trading signals can be automatically identified and positions placed.

But what are the pros and cons of using a Forex trading bot?

One benefit of using a trading bot is it saves time for traders. Additionally, it eliminates emotions, meaning trades are placed pragmatically depending on set conditions.

The main disadvantage of using a trading bot is the number of unprofitable robots being tossed around, marketed as superior. Although vendors claim their bots to be profitable, most require tuning and traders doing due diligence—especially on back-testing and other data-mining refinements.

Keen to learn the forex market? Check out our other explainer articles in our Learn Forex blog. 

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