What is a robot?

Technical analysis has one main goal: Eliminating human factors such as emotions, feelings, or mistakes from the trading process. A perfect trader would almost work like a machine, strictly obeying predefined rules and executing the decisions these rules imply without any own judgment, even after winning or losing streaks.

Therefore, some traders decided that, if a good trader is supposed to work like a machine, they might as well let a machine do the trading. They developed computer based mechanical trading systems that take over every aspect of trading and exclude the trader from the decision making process. Those systems are called robots.

Robots will interpret signals, decide when to enter the market, which option type to use, how much to invest. There are two ways to get a robot:

  • You can either create it on your own, or
  • You can buy a robot.

Since most people lack the programming knowledge to write the many lines of code required for a robot, the only option for them is to buy a robot.