Advances in technology have changed the concept of trading. In the past, people used to rely on the traditional trading method, where the traders have to visit the broker’s house physically. Now, you can place an order with a single click. In fact, many women in the UK have started to make a living from the trading profession. But making a consistent profit and living your life is not so easy. You have to educate yourself properly and learn a manual trading strategy. This is where things become a bit interesting. Many traders often use trading bots to boost their performance. Though you might have heard EAs and bots are a total waste of time, if you use them properly you can definitely boost your profit.
Let’s explore some of the key features of EAs and trading bots that are frequently used by professional traders. After reading this article, you won’t say that EAs and bots are ruining the life of a trader.
Monitor the price movement
Monitoring the price movement is a very complicated task. Those who are trading as a fulltime trader often become bored by starting at the charts. But if you install a trading bot or EAs, you can set a price alert at specific levels. As soon as the price hits your target zone, you are going to get a push notification on your smart device. So, it’s obvious that you won’t have to observe the price chart 24 hours a day. When specific conditions are fulfilled, you can start analyzing the market and look for potential trade setups.
Those who are using the EAs for the very first time might have some trouble. But this can be solved by using s demo account. Choosing a well-reputed broker like Saxo markets so that you don’t have to deal with technical glitches while demo trading the market is essential. After using the EAs or trading bots for a few months, you will become confident with the trading bots.
Identifying the major patterns
Do you know the trading bots can identify the major chart patterns? The naïve traders often find it hard to filter out the reliable chart patterns in the higher time frame. But with the help of an EA, you can find major chart patterns. In fact, you can even analyze the different price action signals formed at the critical support or resistance level. Once the pattern is identified in the price chart, the trading bots will generate signals and send you a notification. As a trader, you should analyze the quality of the chart or candlestick patterns and place the trade. But try to avoid trading the major reversal at the initial stage because it requires extensive skills.
Lot size calculator
Traders can also use money management robots that can automatically calculate the lot size or the maximum stop you should place for a certain trade. Those who are having trouble in managing the risk can use the lot size calculator robot. Install the trading bots, and it will do the rest. But when you use such a robot, you must have a basic idea of risk management policy. The robot might give you three different levels of trade setups based on your risk exposure levels. So, analyze the signals in the market and pick the most suitable lot size based on the stops and take profit level.
Pro traders often purchase premium news bot that can analyze the news factors with a high level of precision. Though it’s a very complicated task, you can still get a general idea about the major pairs. The robot analyzes the major news like NFP, GDP, interest rate decision, etc. and gives precise data about the condition of an asset.
Most importantly, it can create a simple warning message prior to the high impact news release. This simple feature can save a ton of money for the naïve traders. So, try to take advantage of modern technology and learn to use trading bots in an efficient way.