Forex Robot
When it comes to choosing forex robots to trade, getting feedback from current users can be a crucial step in the right direction.
The following list of automated forex trading robots may help if you are looking to assemble a stable of such programs.
You should try to select a variety of robots based on the fact that each one adds something unique to the mix.
For example, it’s no good having three Asian scalping forex robots that all trade the AUDUSD, unless each robot adopts a unique approach to trading that pair in the Asian time session.
- a trend following program that trades breakouts
- a trend following program that trades retracements of breakouts
- a scalper that trades the Asian session
- a scalper that trades the European session
or any variation on the above.
The important thing is not to be buying and implementing automated forex trading software programs simply because you’ve read a bit about them and they appear to be successful. You need to be aware of the fact that each is different, but also that many are copied from other forex robots for example, so that you would just be running the risk of doubling up if you do not do your research first.
How Effective Are Robots?
Although Forex robots promise make profitable trades, they are not all they’re cracked up to be. According to the federal government, most of them are scams. Likewise, you’re not too likely to find articles in the Wall Street Journal or any other reputable news source that promotes them. Even online robot merchants promote their robots by claiming their competitors’ are scams. Many are advertised with false claims by people who’ve made money using these systems. A great number of investors lost money using them. In fact, some had their entire accounts wiped out.
If you want to know how effective they really are, check out reviews online. Though they can scan millions of charts within seconds, 90% or more turn out incorrect information. After all, Forex robots are only robots. Even though they can perform highly sophisticated tasks, they can’t think creatively. Likewise, they can’t imagine what may happen in the future as their functionality is limited to how they were programmed and past performance.
For traders that use one, they should not depend on it to do conduct all their trading activity. After all, trading requires a great amount of human observation and research. Also, humans, not software, can follow up with economic conditions or keep up with the financial news. Robots can only find positive trends and trading signals, but sometimes their functionality is adversely affected by jittery trends or false information. Hackers and viruses might also hamper robots.
Automated forex trading software or robots are good opportunities for their developers to make money, not for you as a Forex traders. They not only don’t make your rich, but they can also wipe out your account and blow up your trading capital. But they can make the developers millionaire. Smart developers know that people are eager to make money and forex trading is one of the ways they can follow to make money. However, they use this as an opportunity to create a robot or software (or an e-book, DVD, course, seminar, webinar, …) to sell and make money. If the robots they sell could really make money through trading the currencies, then why they are selling them to others and they don’t use them to trade on their own Forex accounts? This can have less headache for them, whereas selling a product has a lot of headaches, and is a lot of work. The answer is they know the robots they create don’t make any money for forex traders. They are the only one who make money through selling the robots. Can a $99 robot make thousands of dollars every month? If yes, then why do they sell it for a $99 one time fee?
If it was that easy to make money using the robots, now everybody would be doing it, and you wouldn’t see anybody in the streets, going to work. It is possible that a robot makes money for a limited time, but then it starts losing and in most cases it wipes out all the money it has made with one position. Most robots are scalpers. They make a few pips with each position they take. They set a very tight target and too wide or no stop loss. Can a trader survive with such a strategy? Absolutely not.
Forex trading is an skill, knowledge and art. It is something visual and analytical. It cannot be done by a software. Besides, markets conditions change all the time. It is only an experienced trader who is able to distinguish when to enter the market and when to stay away.
Instead of wasting your time and money on things like automated forex trading software or robots, just spend some time on learning a strong trading system and become a professional trader who relays on his own knowledge and experience, not on some pieces of computer codes written by someone who is not a trader himself.
