Negativity bias – Traders with negativity bias focus excessively on negative outcomes. For example, a trader might scrap an entire strategy because of a small drawdown, ignoring its longer-term winning potential. According to CFI, negativity bias makes a trader “more inclined to the negative side of a trade instead of considering both sides,” potentially leading them to abandon a good strategy due to minor setbacks. In the context of forex robots, a negativity-biased trader might distrust profitable signals after a loss, even if the strategy is sound. Ensuring that a bot strictly follows its logic (for instance, using an unbreakable StopLoss rule) helps overcome this bias by not letting isolated losses derail the plan.

Back to Robots Glossary Index