The existence of this trading robot platform makes the wider public more interested in this trading field. This trading robot platform refers to a platform for trading activities such as currencies or forex automatically. In addition to forex, this trading robot also offers crypto assets to commodities. However, this time we will discuss what a forex robot is. This forex robot is also often referred to as an Auto Trading Robot and also an Expert Advisor which is an electronic tool that works alone to find open trade opportunities, both open sell and buy in the forex market. The forex robot here is not physical, but a software for trading forex automatically. To know more about this forex robot, you can read the article below.

What is a Forex Robot

A forex robot is a special program that generates trading signals using mathematical algorithms that use technical indicators. Some trading robots only send these trading signals to traders. The way forex robots work is not like doing all your work when you want to make trading transactions, however, the forex robot only runs automatically by making buy and sell transactions which are fully controlled by the IT team of the forex robot.

The price of the bots sold also varies, adjusted to each level of ability. For level 1 bots, it will offer a trading capacity of US$110 - US$500, then provide an auto compound of 0.01 lots - 0.05 lots and is priced at US$ 100 or Rp 1.5 million. Meanwhile, for level 5 bots, the trading capacity can reach US$ 10 million and auto compound 1,000 lots. This bot is priced at US$ 3,500 or Rp 52.5 million. However, for those of you who are offered investment with this forex robot, you should raise your vigilance. Because a number of forex robots are actually indicated as a fraudulent practice or fraudulent investment.

This is also in line with the discovery of various irregularities in its operations. Some irregularities have been found with the high ratio of profits to losses scored by trading robots. The profit ratio or winning rate almost reaches 90 percent. There are even trading robots that have never experienced losses since their appearance. This makes no sense because both experienced traders and world-class investors have a much larger loss ratio.

In its operation, forex robots are considered to use artificial trading or trading. This is shown in several things such as delayed opening of trading positions, different from real time prices, to differences in price positions that occur with price charts. Another irregularity is that the member get member scheme or money game in the style of a ponzi scheme to provide profits used by various trading robot platforms. This is indicated by the fact that the forex robot platform requires money from new members for its operations, just like other ponzi schemes.

Forex Trading License Using Robots

In an effort to protect consumers, the Commodity Futures Trading Supervisory Agency (Bappebti) and the Ministry of Trade have again blocked the domain of unlicensed websites. The website domains of Bappebti's unlicensed entities that are collected generally consist of duplicate websites of futures brokers licensed by Bappebti, websites introducing brokers from overseas futures brokers, and forex investment package offerings under the guise of selling trading robots.

In its findings, most of these forex trading robots display legality in the form of a Direct Sales License (SIUPL) to do business in the field of direct sales in the form of e-book software. However, in reality, in the field, Bappebti actually found practices in offering investment packages using trading robots (EA) using the member get member system, and not selling ebooks as business licenses in the field of direct sales were given.

In addition, there are also entities that offer forex robot investment packages only by including a Trading Business License (SIUP) or Business Identification Number (NIB). As for copy trading, this is done by copying the master who trades manually, and you can emulate what the master does to get similar profits. So for distribution permits, this is a legal thing for licensing.

How to Trade Passive Forex

There are four ways to trade forex passively based on the system used, including the EA system, copy trade system, MAM system, PAMM system. To find out in detail, you can understand it through the explanation of the trading robot below:
  1. EA which stands for Expert Advisor, this trading robot system runs on the trader's side which means that this robot can be installed on all brokers and on all charts. If you trade on broker A with trade on broker B with the same EA, then the result will be the same. So if someone says that trading in the form of an EA is trading with good results, then it cannot be justified. The problem with this EA is consistency and the developer has to give the bot to its clients. You need to change some settings to trade.
  2. The copy trade system is made so that developers do not need to provide files to clients, all technology will be held by developers who later clients or customers will only receive copy trade robots. This copy trading robot is a type of robot that cannot read market movements, this robot can only imitate what is done by the master. Copy trades can also be used on different brokers and servers, so it is most likely that the master open copy trade, not open.
  3. The MAM system which stands for Multiple Account Manager, the technology is stored on the broker's server so that everyone has to trade at the same broker, if your account is stored in another broker, then your robot will not be able to read. This type of MAM trading robot uses a referral link system, which means that all traders who register in the master link will automatically follow under the master. In MAM technology, the master must have a balance and when the masten opens, the account under him will also be opened. MAM technology is almost the same as copy trade technology. It's just that MAM can be done at the same broker. MAM technology will have the same results. On the developer's side, the MAM system is less profitable because the system is instant.
  4. The PAMM system stands for Percentage Allocation Money Management. The principle is almost the same as MAM, however, in the PAMM system the master account does not need to have a balance. Because the master reflects all the balances below. When opening, only the master is the opener, because the master's position opens represents all the traders under him. After opening it will be distributed to all traders' accounts.

Allowed Forex Robots

Each trading robot has its own system and strategy. By using trading robots, investors can minimize the influence of trading emotions and psychology when trading. However, the use of this trading robot still has its drawbacks. Trading robots cannot read and analyze fundamentally the news that may appear suddenly with inherent risks. Traders should be able to choose a credible forex trading robot so as not to lead traders to the crime of money games.
 
Before buying forex robot services, traders should check the trading history of the robot both in real and backtest. The characteristic of a credible trading robot is that it always updates with market conditions and there is manual intervention. So the trading robots that are allowed must continue to use the manual system without all being held by the forex robot.

How to Set Up a Forex Robot

There are several important things that you should know about this forex robot, namely, the use of trading robots can be riskier than manual trading, if the forex robot used is not equipped with a good money management algorithm. After knowing this, you can install the forex robot you want. For the steps on how to set up the forex robot, you can understand it through the explanation below.
  1. You can click on the 'view' located at the top left and then select 'navigator'.
  2. Next, you select the trading robot you want to use by dragging it to the screen/chart.
  3. Setting the trading robot (Expert Advisor) according to your needs (common - allow live trade, input - set according to your needs).
  4. And finally you can click OK if the forex robot settings are felt to be in accordance with your wishes and then click the 'auto trading' button.

Advantages of Forex Robots

There are advantages of forex robots that you can feel when using this forex robot. Some of the advantages of forex robots are the main reasons why many traders stop trading on their own and switch to EAs:
  1. Multitasking. Forex trading robots are capable of executing hundreds to thousands of instructions per second to comb through and execute every forex trading opportunity. The workload is clearly beyond the limits of human capabilities. However, keep in mind that not all forex robots have that high performance, as it depends on the system that underlies the creation as well.
  2. Not affected by emotions. In any market condition, forex robots only execute instructions according to programming standards, without emotional intervention. In this sense, the EA will execute orders such as buy or sell and place stop loss and take profit exactly like the programming formula. In contrast to manual trading, where traders are easily influenced by emotions when faced with price fluctuations. They will usually shift the SL and TP positions due to feeling greedy or better, anxious to face prices that do not move as desired. In the long run, these bad habits can be an obstacle to success, so an emotion-free EA is seen as superior.
  3. Active 24/7 non-stop. As long as connected to a VPS, forex robots can work all day non-stop. So, as soon as a trading opportunity arises, the robot will always be ready to execute market orders at any time. In other words, if you use an EA, you no longer need to worry about missing out on trading opportunities even if you are busy with other activities or taking a break.
  4. Testable trading performance. Because the robot always consistently follows its programming standards, its trading performance can also be measured clearly. Generally, the performance of trading robots is measured by backtesting and forward testing methods. So, before you buy a forex trading robot, you can make sure that the forex robot report has good performance.
  5. New features that are constantly updated and evolving. As the development process of forex robots develops, more and more new features are also developed to follow market dynamics. For example, the news filter feature and invisible mode (to avoid brokers that stop loss-hunting). So that you can enjoy the most advanced features, you can look for a forex robot developer who provides auto-updates. With these features, forex robots will always be updated with the latest features.

Disadvantages of Forex Robots

In addition to knowing what are the advantages of forex robots, then you also have to know what are the weaknesses that forex robots can do. The disadvantages of this forex trading robot are:
  1. It costs extra. Trading using EA robots is definitely more costly than manual trading. In addition to spending money to buy the robot itself, you also have to regularly pay VPS rental fees. The better the quality, the higher the cost.
  2. Unable to adapt to certain market conditions. At the time of high-impact news releases, opportunistic traders usually take advantage of the volatility of price movements to make a profit. This activity is commonly referred to as news trading, and is usually carried out by scalpers. However, the risk of such activities is much higher than trading under normal market conditions. However, the risk of such activities is much higher than trading under normal conditions. Unfortunately, trading robots are not designed to adapt to such situations. That's because basically the "way of thinking" of trading robots is designed in a linear way, whereas at the time of news releases the movements move fluctuating and randomly.
  3. Requires special skills to set it up. The trading process is fully automated, so at a certain moment where market conditions are out of the ordinary, you are the first person to take control.
  4. Not all brokers allow the use of forex trading robots. EA can send tens to hundreds of market orders in a fairly short period of time. If enough traders use forex robots, the broker's server could be overwhelmed by long queues of market orders. In such situations, the broker's server will experience lag or even freeze. To avoid this, some brokers will ban the use of forex trading robots.

Trading Robots VS Copy Trading

Many of the general public think that trading robots and copy trading are the same thing. Some traders think that copy trading is the same as a trading robot that tends to make some traders lose money. This time we will learn what are the opposite things about robots and copy trading. For copy trading, traders can observe and learn how a professional trader works in making profits, free to optimize profits or minimize losses, can choose traders with the desired characteristics at any time, free to trade in any market situation.

As for trading robots, traders cannot learn and develop by only running the program that is instilled, there is no opportunity to improvise at all, only surrender to the chosen robot, cannot be used during high impact news, the cost is relatively large to get and maintain a trading robot. Not including additional fees for using Virtual Private Server (VPS). After knowing what a trading robot is, how to license trading using a forex robot, and other things, you must still find out and remain careful to choose a broker so that you are not exposed to scams regarding this forex robot.

This the discussion from GICTrade regarding the explanation of "Forex Robots VS Copy Trade, Explanation and Distribution Permit". You can also find out other information about trading, investing, and other financials, such as "Sunton Capital Commits a Scam with Mass Margin Call" only on the GIC Journal. Also make sure you deepen your forex knowledge at GICTrade, via the scalping ebook, and also NFP live trading through the Google Play Store and Apple App Store.