Current developments have enabled forex traders to use technology for a better trading experience. Due to technology, they predict the market more accurately and trade more for better profitability. The MT4 platform provides them with real-time trading benefits because they have the advantage of getting analyzed data.
They have further advantages to tap into forex robots and Expert advisors to improve their trading experience in multiple ways. The expert Advisor technology predicts the market and gives signals when the time is right to enter or exit a trade. The forex robot provides a hands-free trading solution. They both work on the MT4 platform. Specifically, a free forex robot has a lot of benefits when used on the MT4 platform.
Is a free forex robot limited in features?
Using eas forex for MT4 is probably the first step every forex trader should take. It has powerful features that provide traders with hands-free automatic trading benefits so that they worry less about making mistakes. It is an automated application that is programmed with capabilities to analyze the market, pick the best promising trends, and trigger a buy or sell signal.
It is coded to analyze the current market as well as the historical market to come to the most predictable conclusion of the best currency pairs to buy or sell. This ability to analyze historical trading data is one of the features you should look for when deciding which free forex robot to choose. It works as perfectly as a paid robot and closely has the same powerful features.
Types of free forex robots for MT4
All forex robots use automated programming to carry out trades. The way they work is tied to the way their creator coded it. The robot is a program that follows coded commands and cannot work outside the codes unless there is a bugging problem or another attack.
The MT4 platform is loved by most traders because it’s easy to use, even for inexperienced traders. It can be customized to make it compatible with the kind of forex robot coding being installed on it. Currently, two types of robots work on the MT4 platform. These are signal-based and automated robots.
Automated free forex robot
To understand the two types of robots better, think about a manager who has two marketers. To one, he gives him all the freedom to look for markets and buy or sell products without having to contact the manager for permission. On the other hand, he gives freedom to look for the market but he has to get permission from the manager to buy or sell.
With an automatic robot, it is programmed to search and analyze the market and once they get a chance to trade, they do so without waiting for its owner to approve. It relies on the settings programmed in it to trade many times and for many hours.
Signal based free forex robot
This type of robot works just like an automated robot. It analyzes the forex market and gets the best currencies pair that would give its owners the best profits. The only difference is that it doesn’t buy or sell but instead sends a signal to its owner that it has found a trading opportunity. The owner checks the opportunity and if he feels it’s a worthy chance, he gives the command to the robot to trade.
Benefits a trader gets when they use a free forex robot on MT4
The benefits of using free forex robots are many regardless of whether the robot is signal-based or automated. Once installed on the MT4 platform, the trader can relax and begin to enjoy their tremendous benefits.
They are free
The earliest benefit a forex trader can count is the fact that the free robots are free. That means a trader doesn’t pay a coin to own and use them. They only need to visit a free forex robot provider or broker and sign up with them to start using the robot.
This is specifically good news to new traders or traders with limited funding for forex trading. With as little as $100, a trader can register an account and benefit from the forex market. Experienced traders save the money they would have used to buy a robot and invest it in trading.
They work continuously
Because the free robot is a program, it obeys the coding language that created it. Once a trader hits the run button, the robot begins to work and will not stop until the time or day when the trader will hit the stop button.
Some free forex robots are programmed to work within certain hours and automatically stop. If programmed that way, they can again automatically start trading unless the settings are changed. A trader benefits from nonstop trading 24/7 and throughout the year.
Multiple pairing of currencies
The free forex robots can be programmed to pair multiple currencies. They analyze the market and pick the most relevant pairs. If its prediction on the pairs is positive, it pairs them and waits for a chance to sell. The robot doesn’t pick one pair at a time but selects several pairs and pairs them simultaneously. The trader gets multiple chances for profits.
Human traders are prone to make multiple errors in a trading session and maximize losses in any given session. Due to errors, some traders have lost entire forex investments that they would have saved if they were a little keen on errors.
The chances of a free robot making errors are minimal. If it’s programmed by an expert programmer, its predictions will be error-free more than 90% of the time. When the errors made are minimal, a trader gets more profits and can reinvest more into the forex market.
Ability to backtest
Backtesting by a free forex robot means analysis of historical data to use it for the benefit of the current market. Not every free forex robot has backtesting abilities. Some can backtest as far as 20 years if it’s programmed using advanced coding language. The robot analyzes historical data and studies individual or paired currencies to predict how they are likely to behave in the future.
Can trade without human help
Human trading can be affected by emotions and false information. This is because a human trader not only relies on their analysis but also finds out information from other traders, experts, and advisors. This creates opportunities for losses due to trading by emotions.
It is different with free forex robots because they don’t rely on emotions or wait for a consultant before trading. Once programmed to automatic trading, it executes trades without the need to wait for human instructions.
Because they eliminate all emotions, the chances of making errors or trading before time becomes minimized. To the trader, they get peace of mind because they know their robot doesn’t act on emotions, and therefore, it is predictable.