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How Good are Forex Robots?


Are you confused by the number of forex robots advertised on the internet, all claiming to offer the best returns?
Have you have been looking for a single site to give you a one stop review of the top forex robots?
Can Robots Really Enhance Your Trading?
The most important feature of an automatic forex robot or expert advisor is that it removes human emotions from trading to make a rational trade decisions for you built around the trading rules encoded in the software.
85% of traders lose money, because they are overcome by their emotions. The two emotions that have over the year been at the root forex traders are greed and fear..
Greed often means traders make trades that are too big or too risky in their goal to make bigger gains. Greed also often results in traders trying to squeeze last pip out of a currency move rather than being satisfied with an acceptable profit.
Fear often results in traders not making a trade when they should based on a good signal, or to close a trade too early before the trade has had a chance to mature into a profit.
People in the know advise that there are a few key guidelines in learning to beating your emotions.
- develop a trading plan and ensure you stick it. - make sure that you use sound money management to keep your risks in check and trade within limits you have set yourself..
Of course it's easier said that done and the big problem is that we are human beings , and do find it difficult to be disciplined and stick to the rules. We naturally have a tendency to get too greedy or we become fearful and makes rash decisions and forget our strategies when the market does something that we did not expect.
I can speak from personal experience. I tried to beat the market trading with my own manual trading systems following charts and signals. I was a failure at this so turned by attention to forex robots as my main trading tool. Without question I have discovered that forex expert advisors are the only way for me to counter my emotions and stick to a plan.
Forex Robots of course don't know anything about greed or fear. They simply do as they are told in terms of the code that expert traders have programmed into them. They will only execute a trade once all the conditions and signal have been met.
There many hundred of forex robots in the retail forex market. Most of these run on the on the MT4 trading platform. If you are new to this why not try one of the free expert advisor on a demo account. This is great way to learn how expert advisors work, but do be cautious before you trade live with free automated trading software. They are generally untested in real time and there is no technical support if you need further information. I therefore suggest it is better to sign up for a proven forex robot, but do your research before buying. If you would like to know where to get hold of some free forex robots drop me a line.
Choosing a forex robot is like selecting the right club in a game of golf. The market can be pretty wild and volatile at times and different tools are required depending on market conditions. Other time it can be placid and much less volatile needed a different approach. Most forex robots are optimized for one a particular market condition.
A trend expert advisor is good for big trending markets like we have seen recently
A scalper on the other hand is geared to make a number of smaller trades seeking to make a few pips at a time. This needs a steady less volatile market and is usually better during the quieter Asian trading session.
Some robots are geared to exploit deviations or gaps between tightly correlated currency pairs e.g. EUR/CHF.This is call called arbitration, gap or correlation trading.
Others are based on laying out a grid of tiny trades within a range in order to capture gains as the currency moves within the grid.
Likewise robots will often be optimized for a single currency pair whereas other can trade multiple pairs.
You must do your own research (see chart below as an example) to establish the kind of market conditions and currencies you wish to specialise in. You should then try and find the expert advisor to manage your trading strategy. You should be able to let you robot/s run our autopilot. If choose wisely it should generate a good profit for you over time.
There are other things to consider in selecting your idea expert advisor:-
it must have a proved track record of delivering consistently profitable results over time.
should show 60% or higher number profitable trades vs losing trades and will need to include an adjustable stop losses option as well as adjustable profit targets for trade exit..
be optimized for a small number of currency pairs instead of trying to cater to all major currencies. Each currency tends to have it's own behavior patterns so on size fits all tends not to work.
be capable of adapting to market changes. The best automated forex systems will be updated for free for life by their publishers to keep them as aligned to changing market conditions.
Once set up with the right parameters Forex Robots really should be Fully automated to place trades on their own and continue without any of your own tweaking or involvement.
forex robots should have money management built into their code help you make sure that you never over leverage your account. This will allow you to maintain a profitable overall result even if you lose are large number of trades.
Automated forex robots will do nothing more than follow the strict rules programmed in the expert advisor, and will only place trades when a buy/sell signal is triggered according to the robots rules



Comments

  1. Great Post
    Thanks
    this site is showing some cool robots review
    www.forexrobotswar.com

    ReplyDelete

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