![]() They shouldn’t be seen as a replacement for your decision making. But, they are tools to assist you in your trading. And, automated trading can be helpful to improve your profits. It is true that algorithms are increasingly used in forex. And just because something is legal, it doesn’t mean it’s safe, useful or even good! Robots Are Tools, Not Miracles You have to be very careful about promises of easy money. But the person selling it is another jurisdiction, so they can’t be held legally responsible for false advertising and losing your money. The legal problem that arises from using what’s often called a “scambot” is that it’s legal for you to use it and lose money. This is why if you talk to most experienced traders, they will not recommend using robots until you’ve mastered manual trading yourself. Many brokers don’t allow robots, not because they have a problem with robots per sé, but they are worried that the trader has bought a robot that will end up ruining their account. That would be illegal.īut there are a wealth of people simply scamming by offering robots for sale that don’t perform at all a s advertised. So even the honest sellers can exaggerate the benefits of their robot to unrealistic levels. Even the best ones simply follow a set of predetermined rules, and can’t respond to changes in the market situation.īut, people selling robots generally want to convince potential customers that their robot is better and worth buying. Being Cautious Doesn’t Need to be Mandated by Law In part, this is because they are a lot riskier (their selling point is that you don’t control what they are doing with your money), and they are often offered by businesses seeking to profit from selling robots instead of generating profits in the market. That’s where most of the caveats come in. The big issue comes in for fully automated trading robots that have access to your account, and trade the market without your direct input. ![]() For practical effects, this is manual trading, though assisted by a program/robot. But, in the end, you decide whether to enter the trade yourself or not. These are programs that track the market and do more sophisticated calculations for you in order to recommend a trade. In the context of regulation, we can discount semi-automatic robots. In turn, that changes how regulators see what you are doing, and whether they are going to allow it. The differences between the kinds of robots have a practical effect on how you interact with the market. ![]() Robots Are Not the Same as Regular TradingĪs we’ve mentioned previously, there are several kinds of trading robots. It matters whether you are using a robot you’ve created, whether the robot is being offered for download for free, or whether someone is profiting off of a robot with certain advertised characteristics. Some things are legal to use, but not legal to buy or sell. There is also the factor of supplying robots. There is more to automated trading than just your trading. ![]() Generally, however, most established, reputable brokers will allow traders to use robots or EAs responsibly. Some brokers don’t allow traders to use robots for different practical and regulatory reasons. It’s perfectly legal to drive a car, but there are lots of things that you can’t do with your car.
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