What is a Forex trading Robot?
A forex robot, also called an Expert Advisor (EA), is a piece of software with inbuilt programmed rules that automatically make trade entry & exit decisions on the Forex market.
Forex robots are designed to remove the human psychological elements of trading, i.e. emotion & mental state, which can be detrimental.
Forex trading EA uses currency pair volatility to make money, pair examples are EUR/USD, USD/CAD, EUR/JPY, along with other forms of trading mechanisms such as metals, exotics and indices.
Forex trades in a term called pips, short for point in percentage which is a very small measure of change in a currency pair in the forex market. It can be measured in terms of the quote or in terms of the underlying currency. A pip is a standardized unit & is the smallest amount by which a currency quote can change.
Leverage in Forex is the ratio of the trader’s funds to the size of the broker’s credit. In other words, leverage is borrowed capital to increase potential returns. The Forex leverage size usually exceeds the invested capital several times.
The lot size is a trade placed by our A.I. Robot for every pip in movement based on a certain risk & the amount of capital on account.