Automated trading software generally consists of specialized files ( .ex4 or .mq4 ) used within trading platforms like MetaTrader. These systems are often packaged with presets and instructions. The attraction is obvious: the promise of a trading algorithm that can work 24/5 without fatigue, aiming for consistent execution of a specific strategy.
A scalper is designed to capitalize on small price changes, often holding positions for only a few minutes or even seconds. The goal is to accumulate a high volume of small profits that add up over time. These robots typically rely on a combination of technical indicators to determine entry and exit points, often focusing on high-liquidity currency pairs like EURUSD or GBPUSD to benefit from low spreads.
While automated trading offers significant advantages, it comes with substantial risks that require careful consideration: