The online trading space is jam-packed with well-designed websites that claim to offer guaranteed forex profits through an automated bot. Such websites utilize hyperbole terminology that promises fast and consistent returns by simply allowing an AI trading bot to buy and sell currencies on your behalf.
On the one hand, the process of allowing an automated algorithm to trade autonomously is in fact a reality. However, most bot providers in the forex arena are nothing short of marketing companies offering a service that they cannot honour. After all, if making money in the online forex industry was that easy - wouldn’t we all be doing it?
UK-based education and forex signal provider Learn 2 Trade argues that the most effective AI trading bots active in the market are those that rely on an element of human interaction. By this, the team explains that the bot is only as good as the individual that has programmed it.
The good news for those of you that wish to engage with an automated trading bot - but have virtually no knowledge of the underlying design process, is that there are now a number of established platforms that offer a simple drop-and-drag building process.
If you thought the process of making money through an automated bot was as simple as paying a subscription fee and allowing the software to make you endless profits 24/7 - think again. Crucially, artificial intelligence - irrespective of where it is being utilized, is only as good as the underlying software. This is because AI technology bases its decision-making processes on predefined conditions. Once the bot is then sent into the wild, it will continuously collect and analyze the data it has available to it, and then correlate this data against pre-built if/when conditions.
Learn 2 Trade explains that in the multi-trillion-dollar world of forex, this means that automated bots must be designed to follow effective trading strategies. Furthermore - and perhaps most pertinently, AI trading bots do not have the capacity to make manual judgements, so the underlying algorithm must be water-tight.
This is why both newbie and seasoned forex traders are often put off by the thought of engaging with automated bots, not least because they have little to no knowledge of coding, software, or algorithmic data.
As we briefly noted earlier, there are now a number of AI trading platforms that specifically cater to those that have no skills or experience in building algorithms. Instead, everything is tailored to the coding novice via a drop-and-drag design process. Think along the lines of Wordpress and Wix in the online web design space.
With that being said, although the AI trading bot design process can be initiated by users of all skill levels, you still need to have a firm understanding of how trading works. This is because you will be required to build a trading strategy that not only has the potential to make money - but can do so without any human interaction at all.
Once again, this is where traders are often put off by AI, as they are rightly concerned about the thought of an automated bot placing buy and sell orders on their behalf. Learn to Trade explains that top-tier AI trading platforms offer a fully-fledged in-house demo facility.
This allows you to test your AI bot out in live trading conditions without risking any money. The demo facility subsequently allows you to make any necessary amendments to the underlying algorithm until you are 100% certain it’s ready to be unleashed.
When it comes to the building process itself, leading AI trading platforms facilitate a significant number of variables. For example, you will be able to instruct the bot to perform a certain action (like place a buy order at 10% of your account balance) when a predefined technical indicator is triggered (like the RSI surpassing 75).
Within each trading strategy, you will then be able to set the terms of your exit points. For example, you might get your AI bot to install a stop-loss order if your trade goes against you by more than 15 pips, and a take-profit order when gains exceed 40 pips. Either way, the entire trading strategy can be customized to the ‘t’ with ease.
Learn 2 Trade stresses that there is no longer a requirement to entrust your hard-earned money with an AI trading platform that promises ‘guaranteed’ returns. Instead, it’s far more beneficial to build your own AI bot through a simple drop-and-drag design process.
Once your bot is performing exactly as you want it to perform through in-house testing, you can effectively have it operate in the forex markets on a 24/7 basis.
Disclaimer. This press release is paid and provided by a third-party source. This press release is for informational purposes only and should not be viewed as an endorsement by CoinIdol. We take no responsibility and give no guarantees, warranties or representations, implied or otherwise, for the content or accuracy. Readers should do their own research before investing funds in any company.