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Choose Your Forex Robots

forex robots

What are Forex Robots?

A Forex robot is simply a piece of automated trading software which can make trading decisions. The most successful retail robots to date have been based on a platform known as Metatrader. Such robots appear to the trader as ‘expert advisers’ that can either suggest a course of action (when a trade should be placed for example) or the robot can place the trade itself. If a trader’s foreign exchange strategy is purely automated without the need for human input then a Forex robot can be set up to trade twenty-four hours a day.
There are now many companies selling forex robots and the standard of their products varies considerably. You should bear in mind that most forex robots have not been found to be profitable so it is important to thoroughly research a product before you buy.

How to select a Forex Robot?

Forex robots have rapidly increased in popularity over the last few years but the vast majority are unsuccessful.
Anyone in the market for a forex robot is hoping for profit but the levels they are looking for may vary considerably. Some traders are happy with ?50 a week while others are much more serious and are looking for hundreds or thousands every week. The more a trader is prepared to risk, the more they stand to make (or lose).

When choosing a forex robot, risk tolerance should be a key factor. It is vital to choose a robot suited to your particular trading style. This will involve analysing several factors including maximum draw down, profit factor and efficiency and expectancy.

Finding the ideal robot takes time and money while you research the various robots on the market. It is crucial to understand that most Forex robots will only function well within specific market types. Some will perform best within markets that are range bound while others perform best in markets that are trending.

The difficult part is deciding if a market is in range or trending. To be successful with a robot, it is important to never lose gains made when the market was favourable in the event that the market turns unfavourable.

How can this be achieved? By making sure that a robot performs in a robust manner by thoroughly testing it forwards and backwards in a whole range of market conditions. If sustained profits result, then a robot can be classed as robust. But always be aware that past performance has absolutely no bearing on future results.
Before you even consider investing in a particular robot you need to ensure that the seller has properly tested it forwards and backwards. After that, you need to thoroughly test it yourself. Should it turn out to be unprofitable it may be possible to return it for a refund.

If it is robust, the next stage is to get a micro trading account which risks only very minimal levels of capital. If the robot still performs well, you may then want to move up to a more substantial trading account. However, remember that even if the robot has done well until now, this is no indication that it will do so in the future and it is important to constantly monitor the robot.

 

 

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