If you look at the success rate of the retail traders, you will be surprised to know that the majority of the retail traders are losing money. Having access to the online trading industry is really easy but making a consistent profit is a very tough task. Those who are trying to become a skilled trader for a long period of time might have heard about the Forex bots and EAs. These are nothing but a complicated software program that lets the traders know about the direction of the price movement. In fact, some of the trading bots can trade on behalf of the human traders. Just by installing the trading bots, you can stay on the sideline and earn money. However, the readymade trading bots often fail since they don’t synchronize with the trader’s personality.

In today’s article, we are going to highlight some of the key features for which you should always go for the custom made bots. The readymade trading bots might be amazing still, it won’t in the long run since it will not synchronize with your personality.

So, what are the key things for which we should prefer readymade trading bots? Though the answer greatly depends on the trader’s personality, we will focus on some common parameters.

These are –

  1. Custom risk exposure
  2. Custom trading style
  3. Adaptive features

Customer risk exposure

Most of the trading bots come up with the default 2% risk management factors. But this is not going to work since the trading bots might end by executing more than 10 trades in a day. And if for any reason, the bots lose 10 trades in a row, you will lose 20% of your account balance. And recovering this 20% will be a very tough task. On the other hand, the readymade bots just focus on the 1:2 risk to reward ratio. But trading with 1:2 risk to reward ratio is a very basic setup. To make trading more comfortable, you need to rely on at lesat1:3+ risk to reward ratio.

forex customer risk exposure

The customer trading bots have the unique feature by which you can bring change to the risk to reward ratio in the trade setup. Some of you might say that the risk to reward ratio greatly depends on the trading style. Well, the 100% accurate and for this reason, the second thing is the trading style which you need to incorporate in your trading bots.

Custom trading style

The majority of the traders fail to make a profit by using the bots since they don’t know the type of trading strategy used in the bots. They blindly follow the directives of the bots. But the smart traders love to rely on their trading method. And making a bot based on your trading strategy is not a tough task. Just let the programmers know about the key parameters which you use to execute the trade. 

Custom Trading Bots

They will write smart code and the forex robot will do exactly what you would have done in the real market. But there is a small twist to this approach. Unless you know your trading style is capable of making a consistent profit, you should never try to incorporate the strategy into the bots.

So, how do we know that a trading system is capable of generating profit in the long run? You can either use the manual trading method in the demo environment or use the strategy tester. The process is really simple and can give you highly accurate data which can boost your trading performance to a great extent.

Adaptive features

When you develop a custom trading bot you can easily incorporate adaptive features that many trading bots don’t have. The adaptive features allow the traders to bring necessary change to their bots based on the change in the market dynamics. Though it requires strong knowledge of this market, still it is one of the most effective ways to keep your bot on the right track. If required, program the bots in such a way so that it can predict the direction of the trend by fetching the high impact news data. 

custom trading bot

Many naïve traders are using news trading bots only to ride the big market movement. Instead of using an individual bot, equip your trading bot with such an amazing feature.

Conclusion

Custom made trading bots are way more advanced and can deal with tons of parameters. Most importantly it gives the retail traders ultimate freedom to adjust their trading environment. Those who are new might not understand why the adaptive feature is so important at trading. Use the traditional bots and you will realize by changing some minor things you can easily improve your trade execution process. But never start trading the real market with the custom bots unless you demo trade its performance for a few weeks.