Have you heard about Forex trading robots? It is designed to provide help to traders who are interested in using automated trading. This type of trading utilizes repetitive elements and technical analysis in predicting the price movements in the market. With trading robots, you can trade Forex through the use of a particular computer program. It is also called an algorithmic trading system or Expert Advisor.
What’s convenient about Forex robots is that they can trade without your interference 24 hours. In fact, they are capable of buying over the internet. But the question here is, do they actually work? Do they help maximize the profits of traders?
Understanding Automated Trading
A trading strategy in Forex is made up of rules that the trader ought to utilize whenever they are buying or selling a currency pair in the market. If you want to have a better chance of winning in the market, it is just appropriate to create a trading strategy that you can follow manually. However, with the advancement of technology, there are traders who are using several computer programs that implement an automated trading strategy.
Automated trading is sometimes referred to as Forex robots or bots. They are highly capable computer programs mainly created to impart many trading functions. They know when to automatically place a trade and manage all the trades of the traders according to their instructions.
Forex bots are either built using a set of trading rules or you can personally design one according to your own trading strategy. Because the thing is, it is easier to buy a commercial automated trading system than create a new one yourself, especially if you have limited experience in trading.
There are a couple of well-rounded trading robots in the market and some of them are highly respected by traders. But beware, there are scams that compromise your trades instead of helping you achieve more profits.
Before using the bot in the live market, you must have a clear understanding of what it can do. You must also know how to operate it properly and if it aligns with your own trading goals.
Backtesting – it is very important to backtest your trading bot in various market conditions, under different currency pairs. This way, you can be sure of its efficiency when used under real circumstances.
Order Size – there are robots capable of performing at their best under particular order sizes. This is one of the reasons why you should be familiar with your Forex trading bots. The wrong order size might compromise your trades. Be wary of it.
Live trading results – when picking a trading bot, you have to make sure that the results displayed are from the live market and not just from a demo account.
Drawdown – it pertains to the difference between the low and high points at a specific period. Every trader has their own unique preference when talking about drawdown. Therefore, it is necessary to pick a bot that suits you best.
Credibility – above all, you must ensure that the trading bot has good reviews and testimonials from previous and current users.
