Online Trading from home has become a polished and professional industry over the last decade, but most people these days just don’t have the capitol or the time to invest at a higher level. Fortunately, technology came up with a solution that makes trading easier than ever.
Just about every financial Consultant will give the cliché “don’t put all your eggs in one basket” and recommend a “wide exposure” to the markets. In other words, the safest way to invest is to have multiple small investments running simultaneously. This requires a lot of time dedicated to researching the assets, but who has time to do that? How can a new trader with a full time job get fast and easy access to multiple trading opportunities?
What are Robots?
A professional (human) trader spends hours per day watching market fluctuations, looking for a pattern or sign that a lucrative opportunity is occurring. They base their decisions on previous experience, and hope that what happened before will happen again. The human brain is well-suited to pattern recognition, but computers can do it even better.
Trading Robots are basically a database of algorithms created by experienced traders and expert programmers. Hundreds of thousands of algorithms working in concert with each other to create signs or signals. As asset prices fluctuate, a history or behavioral pattern is created which is constantly being compared to the algorithms.
The process works the same as the human version, but it occurs much faster for the robots which can monitor the entire market and react in milliseconds.
Why do algorithms work?
Let’s simplify for a moment so you can understand exactly what a robot does. Imagine sitting in front of your house or apartment monitoring the colors of cars driving by. After a long and boring day you enter your findings into a sheet and create an hour-by-hour report. You notice that between the hours of 7am and 8am, more red cars pass by, and the same between 6pm and 7pm. Now repeat the process for a few weeks. You will start to see patterns as people come and go on their daily routines.
Now imagine that a friend comes to visit around 6pm and you wager $100 that more red cars will come than any other. You will win, and you consistently would. Algorithms do exactly the same, albeit with infinitely more complicated traffic and behavior. Whenever an obvious pattern starts to emerge from within the market movements, the algorithms immediately and automatically send signals or recommendations to the brokers and traders. This analysis is done in milliseconds and offers a far greater prediction ration than guessing.
What else can robots do?
While people can sometimes let their emotions get the better of them, Robots follow the rules. Traders using Robots simply enter their trading preferences and limitations into an easy-to-use software platform, then sit back as the software monitors the markets waiting for hot signals. When an asset triggers an algorithm, the Robot automatically invests (within the parameters the trader has set) at lightning speed. You might say, Trading Bots are the electronic version of the early bird.
Trading Robots use the speed of modern technology combined with the experience and knowledge of trading experts. Each Trading Robot developer guards their algorithms fiercely and takes pride in their performance. The best developers are constantly updating and upgrading the algorithms for maximum performance, so be sure to choose a well-established and highly rated Robot.
To know more about which Trading Robots are being rated as the best of this year, see the results of the detailed investigations and reviews here.