This study aims to analyze the relationship between investment experience, the use pattern of robo-advisors
(passive/active) and the disposition effect, while testing the mediating role of thinking style
(experimental/rational) and the moderating role of the masculine gender role in investment decision-making
among individual investors in the Egyptian financial market. The research is grounded in the Dual-Process
Theory, Nudge Theory, and Gender Schema Theory to explain investors’ behavioral responses toward
recommendations provided by robo-advisors. A random sample of 384 individual investors who manage their
own investment portfolios was selected. Data were collected electronically through a Google Form survey,
yielding (316) valid responses with a total response rate of 83%.
The findings revealed a positive effect of investment experience on the interaction pattern with robo-advisors,
where less-experienced investors tend to rely on passive robo-advisors, while more experienced investors
prefer active ones. The results also indicated that thinking style (experimental/rational) mediates the
relationship between investment experience and robo-advisor usage. Furthermore, both passive and active
robo-advisors were found to reduce the disposition effect bias among individual investors. The study also
confirmed that the masculine gender role moderates the relationship between robo-advisor type and the
disposition effect, as active robo-advisors were more effective in reducing this bias among investors with
stronger masculine traits, whereas passive robo-advisors were more effective among those with lower
masculine traits. Finally, the results showed that the disposition effect negatively influences investment
decisions.
The study concludes with practical recommendations emphasizing the importance of enhancing financial
literacy among individual investors and encouraging the use of robo-advisory tools tailored to their
experience level and thinking style to reduce behavioral biases and improve investment decision quality.