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The robotization of trading – reality and prospects

Computers are becoming increasingly integrated into our daily lives. This doesn’t only apply to domestic issues, but to many other areas of life as well. Automation is being used everywhere. The same is true of trading – trading on financial and stock exchanges. There are currently a fairly large number of computers that trade in automatic mode. At Forex, they are called “advisers,” and on other online platforms they are known as trading robots. They all operate according to the same principle.

The robotization of many fields has led to a reduction in the number of jobs. Therefore, a logical question arises – will robots be able to compete with people in trading in a similar way? We will consider the issue in this article: the current situation concerning the robotization of trading and prospects for its development.

Trading advisors – what are they?

Advisors are special computer programs with algorithms for technical analysis of the market. They are developed by programmers, and in fact, these scripts operate using specific strategies. For example, they can track the appearance on the chart of certain candlestick patterns consisting of several price bars. As soon as the system detects a filtered trading signal, it automatically opens a trade in the corresponding direction with predetermined conditions.

Trading advisors - what are they?

Simply put, trader robots perfectly adhere to the rules of a particular trading strategy. Their operating algorithm is set by a programmer and they cannot deviate from it, always following a clearly defined chain of actions. Such an operating scheme is excellent for mechanical production where there is no novelty. However, the market is not static, it is constantly changing. Therefore, a fixed computer algorithm is unable to fully meet the demands of trading. A well-trained and experienced person can trade on the financial market more efficiently than the most advanced robot. Now, let’s analyze this issue in more detail.

The advantages of trading robots

Advisors are fairly widespread, especially in the field of online trading. This is thanks to all their advantages. Let’s consider this question in more detail in the following points.

  • The absolute absence of the emotional factor. Only cold calculation. An advisor will not be “afraid” or off-balance at the sight of losses. It clearly follows a given algorithm, evaluating only the result of the action, not the process.
  • Strict adherence to the rules of the strategy. An advisor cannot deviate from the algorithm and “accidentally” open a wrong trade. This does not exclude the possibility of a losing trade, but even in this case, all transactions are opened according to the rules of the programmed algorithm.
  • The ability to work around the clock. A person is subject to fatigue but a computer does not need to replenish its energy. As a result, trading robots can work constantly. And even a small percentage of transaction profitability will sometimes enable you to earn a very substantial profit.

The advantages of trading robots

Despite all the advantages of trading algorithms and trader computers, there are significant disadvantages to this approach. They are fundamental and cannot be eliminated without a cardinal shift in how digital equipment operates as a whole.

The disadvantages of trading robots

The limitations of algorithms are the main disadvantage. Any computer, even the most perfect one, can lose significantly to a person under uncertain conditions. The fact is that robots can only respond exclusively within the framework of the algorithm set by the programmer. The human brain has the ability to adapt to rapidly changing external conditions. The computer is incapable of self-learning, otherwise it would have surpassed human intelligence long ago.

The disadvantages of trading robots

Trading is in part a creative process, and computers are completely incapable of activity of this kind. The only advantage of digital technology over humankind is its significant superiority when it comes to the speed of performing calculations. However, a high computation rate does not guarantee success on the market. Yes, you can count 1,000 combinations in 1 second. However, the brain of an experienced trader responds in real time to the subtle signals of the market. This skill comes with experience. It is usually called intuition.


Beginner traders will have to focus not on finding the perfect trading robot, but on improving their own skills and set of practical experience. In any case, this profession will remain relevant in the coming years, as computers cannot seriously compete with a person. There are special trading platforms for training novices. One of the most famous is Binomo. In 2015, the company even won an award for being the best platform for new traders.



The robotization of trading – reality and prospects updated: October 15, 2018 author: admin

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