What is Foreign Exchange (Forex) Market? Forex market is a decentralized global currency market where buying and selling of different currencies takes place. Large institutions are the main participants of this market. It is believed to be the most liquid and the largest market with daily business worth $5.3 trillion according to a report published by the Bank of International Settlements. What is Forex Robot or Expert Advisor (EA)? Forex Robot or EA is a piece of software capable of generating signals about buying or selling of different currency pairs on the basis of predefined instructions (strategies), a robot may also be programmed to place orders automatically, this phenomenon is known as Automated Trading. Advantages of Forex Robots There are many advantages associated with trading through Forex robots, a few of them are outlined below; No Emotions Human emotion or in simple words “Greed” is the biggest enemy of a trader. While trading in Forex market your prime objective is to minimize losses and maximize profits through effective risk management, but most of Forex traders fail to do so due to greed of becoming millionaire and billionaire overnight. Let’s understand with the help of some examples that how a robot may help you in overcoming your greed. Brings discipline in trading One of the most significant causes of failure in Forex market is overtrading without having an opportunity to open a position. The more you trade, more is a chance of committing error. It is very difficult to stop yourself from trading when there is high volatility in the market; some traders even attempt to trade without stop loss in such situations and ultimately ruin all of their investment. A robot, on the other hand, always opens positions when certain conditions are met and most of robots trade with trailing stops. Thus a robot brings discipline in your trading and helps you overcome human emotions. Proper Entry & Exit In manual trading you may open or close a position before its proper time due to hassle of booking profits or greed of getting your order filled fast which often leads to loss or significant reduction in profits. A robot, however, always enters and exits according to predefined strategy thus it helps you in minimizing losses and maximizing profits. Proper Risk/Reward Ratio Some traders often trade big lots (with small investment) when they see high volatility in the market without considering Risk/Reward ratio, which leads to huge losses. A robot, on the other hand, always opens a position with reasonable lot size as per predefined instructions whatsoever situation may be. No Regrets A typical trader usually takes big risks after suffering loss in Forex Market and in an attempt to recover previous loss; he/she often loses more money. A robot has no feelings, thus even after a series of unsuccessful trades, robot is capable of recovering previous loss through a winning streak. More Trades, More Profits It is almost impossible for a human being to keep an eye on each and every pair all the time. A robot, however, can easily do so and can intimate a trader or place an order when certain conditions are met. Thus more disciplined trades with predefined strategies usually yield more profits as compared to manual trading. Fast Execution of Orders A robot places orders faster as compared to a manual trader and accurate execution of orders helps in maximizing profits which is an ultimate goal of trading. In automated trading, orders are executed usually in a fraction of second that allows getting positions filled exactly at desirable price. Multiple Orders at Same Time Opportunity to open a position may arise exactly at the same time in different currency pairs and being a human being it is impossible to open multiple orders in different currency pairs at the same time. A robot, however, can easily place more than one order exactly at the same time in different pairs. Commercial Use A robot can be used for commercial purposes in different ways. You can generate bulk signals with the help of a robot/EA and start a signal service. You may consider staring PAMM service with the help of robot. Similarly, a robot can also be re-sold thus allowing you recover the money you spent in buying that robot.