[XMTrading: For FX beginners] Is automatic trading (EA) profitable? scam?

Language Switcher

XM Trading allows automated trading. There seems to be a certain amount of demand because there are vendors who distribute EAs, etc., but the reality is that most people have gone bankrupt and left. And since there are many unscrupulous traders who sell expensive tools, it is better not to think about automatic trading. In the end, it’s just a loss.

XM allows automated trading

XM, a popular overseas FX company, does not prohibit EA in its operations. Therefore, you can trade with EA using XM. Therefore, there are many people who trade with the naive idea of using EA and leaving it alone to make money. However, it’s actually not that sweet. The reality is that most people are bankrupt and end up accumulating losses. Even if you check on the backtest page and get a good result, there is no benefit because you will lose more margin in the actual transaction.

Reasons for auto trading

The reason why there are so many people trying to automate trading on XM is because of the following good and sufficient reasons. You can download the EA and use it immediately, and you can invest immediately with one click. However, there are many people who put in too many lots and lose their funds, so I don’t want to introduce it too much because it has many disadvantages. Even if you start testing EA, the only way you can make money is when the market is right.

Even if you don’t have time, you can leave it alone and earn money

Even those who are usually busy can make a profit with XM’s automatic trading. If you install EA on MT4 / MT5 and operate it, EA will automatically perform entry and settlement. Therefore, you can trade without permission even during work, so you can earn money without permission.

no brain work required

By using XM’s automated trading, you will be able to trade without chart analysis. Chart analysis is essential to be able to win in Forex when doing discretionary trading. In the case of general trading, it is brain work, so no one can win by trading haphazardly.

not influenced by emotions

XM automated trading allows you to trade without emotion. Many traders who lose in Forex are losing because they can’t control their mentality. Emotions are irrelevant with automated trading, so you will be able to trade without being influenced.

Is automated trading profitable?

Businesses selling automatic trading tools are very dangerous. Also, there are some bloggers who are pushing automated trading too much, but you should know that they are just trying to sell automated trading tools and are not trying to make money. Please be careful as the following selling methods are very common. Automatic trading tools can be used not only with XM but also with other companies such as hfm, fxgt, and exness.

lose all in one shot

The risk of automatic trading is such that if a single big trend occurs, it will go bankrupt. As one-sided movements occur, contrarian entries continue to enter and unrealized losses swell. In the end, you can’t stand the unrealized loss and lose all the principal. In the case of the exchange market, it has the property of returning when it makes a big move, but if there is a rare big direction, it will continue to move unilaterally. Automatic trading tools can’t detect it, so they keep getting contrarian entries all the time.

high risk low return

Unfortunately, unlike discretionary trading, automatic trading is entered without thinking about anything. Therefore, the return is very low. I don’t think about automatic trading, so the return is less. And as I said above, even if your winning rate exceeds 90%, you will lose all your money if you catch one big trend. It’s high risk with low return.

You can’t win with logic

In the first place, the market does not move based on logic. The platform is free and easy to use, and users can start using it right away on their smartphones, but there are very few EAs that can really produce results and achievements. There are no traders who make money exclusively through automated trading. The reason is that the market moves based on emotions, so if you don’t follow the logic, you’ll lose more than just your chances. 1000x leverage services often have the opposite effect.

Beware of traders

Vendors selling automated trading tools are very dangerous. And some bloggers are pushing automated trading a lot, but know that they just want to sell automated trading tools, not to make money. Please be aware that the following selling methods are very common.

sell at a high price

Automated trading software is being sold at ridiculously high prices on Twitter and elsewhere. But most vendors never talk about the risks of their tools. Because the goal is to sell anyway, they often keep quiet about the risks. And as I said above, even if the win rate exceeds 90%, it doesn’t mean much. Because it will eventually collapse.

Automatic trading tool sales on blog

Some vendors sell dubious automated trading tools through their blogs. They whisper sweet words that the winning rate exceeds 90%, that you can earn money by leaving it alone, but you should know that it will eventually collapse. If you can win in the first place, there is no reason to use tools. I just want to sell tool software, so be careful.

Appeal your winning rate

Since the foreign exchange market has the property of returning once it moves significantly, automatic trading can win in most market situations. However, as mentioned above, if one big trend occurs, you can lose all your money. Even if the winning rate is 99%, it will eventually fail. Don’t be fooled into buying by the winning rate. Even an excellent program that runs perfectly 24 hours a day will usually collapse if the logic does not work, and the balance will be zero.

earn money by leaving

The automatic trading tool appeals that you can earn money by leaving it alone. Most people have jobs, so they are usually busy, but automatic trading tools can enter and earn money. That’s why I find it very attractive, but most automated trading tools just fail, so in the end it’s a way to lose money.