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Automated Forex Trading Robots – How They Can Assist With Forex Trading

To properly familiarize yourself with these programs, you must ask these two important questions: What is an automated Forex trading robot and what does it do?

Trading robots are not actually machines as what one would think. They do not consist of mechanical parts that magically make a profit at your command. The term “robot” is a symbolical term that means helping you with your trades by pointing out what currencies are hot, when to sell them and when to buy them. Forex trading robots are based on artificial intelligence created specifically for the international currency market.

An automated Forex trading robot helps keep the trader up to date with specific currency trends. It monitors the rise and fall of prices in relation to the volatility of the market. It makes use of mathematical algorithms to make computations and predictions of the prevailing trends. In order to validate the algorithms the system bases its data on historical charts and its own careful analysis of market trends.

Forex robots have numerous benefits. One of the benefits these robots have is that they are able to process quite a bit of information very quickly, thus allowing them to make more speedy and rational decisions than humans. Forex robots are an excellent choice for those on limited schedules who are seeking to increase their profit. Another nice aspect of how these robots work is their ability to look at things purely rationally. They don’t become worried, nervous, or upset causing them to be valuable in a market as chaotic as the Forex market.

Just because the robots have their benefits does not mean that they do not have some severe drawbacks as well. It isn’t wise to choose just any Forex robot to do your bidding. Therefore, you must look into the details of each one that you consider. While there are very legitimate Forex robots, there are also several scam artists hard at work trying to grab at your wallet. It is important to seek out any reviews that people may have written along with calling the company to see if it’s possible to speak with a real person and not just an automated recording. It’s important to take note of which currencies a particular robot works best with. This isn’t meant to be bias; some currencies perform differently in the market than others. Each Forex robot is different; therefore, they each perform certain trades differently. Some robots do better with larger trades while others do better with smaller trades. Once again, it is very important to do your homework on the way these robots work.

Though it may be true that a novice trader can use these robots, I personally would not recommend it. You need at least some knowledge and experience as a trader in order to know how to handle your robot. Some robots give you the option of manual control; those are the ones that you want to use. When considering features, you must take into consideration what you’re looking for specifically in a robot. A Forex robot is not a cure-all, it isn’t magic. You have to know what to do with it. It’s also equally important to shop around, just as you would shop around when searching for a new vehicle. Remember, when you combine the efficiency of a good Forex robot with your own skills as a trader it can be very beneficial. You may also learn some things about trading after having a robot for a while.

Automated Forex Trading Robots Or Just Manual Trading?

There was a large amount of noise recently, or is it just lots of “loud” advertisers screaming about how good their “Forex trading robots” are, and how simply they can make you pot tons of cash on auto-pilot as you sleep or laze by the beach. Firstly, what’s a trading robot or expert aide ( EA ) as it is also called? An EA is programmed software, “artificial intelligence” coded electronically with a trading system or strategy, and when fired up it works precisely as it is engineered to do. It doesn’t have the power to make any logical or emotional choices whatsoever! I must be truthful and say that commonsense and judgment must overcome here, my opinion about these “Forex trading robots” is, yes I suspect that there are some very high quality EA’s out there, but how does one know which is the correct one for you, or compatible with your method and personality? Sure enough, a good trading robot will do everything from researching your trades, entries, stop loss and will adjust itself to assorted market conditions and eventually close out the trade, without any emotions! There are some trading EA’s, which you can program your own trading method into it, or adjust the perfect settings for the bots own built in methodology.

If I were ever to accept one of these electronic thinkers, I might first like answers to several questions – like how long has it been back tested, explanation and history of winners and share of losers, I would also take a look at the reputation of the seller or company making an attempt to flog it, what precisely is it able to trade? I’d be tired of claims like the robot can trade any thing and each thing in the markets, definitely Google it, and examine it on diverse blogs and forums.

On the other hand, I’m sure an EA would be “most” advantageous to a seasoned trader .

In fact, it would actually add to his trading systems and armoury of indicators to further confirm his trade analysis, it might actually be a confidence booster in deciding if he should “pull the trigger”, an emotional problem that many a good trader does battle with! I suspect that total reliance on an EA to trade my account, without human input, would in my view be “foolish and risky”. Let us take a look at this in a marginally different angle and apply this analogy – would you board an aircraft, if told that you are going to be flying absolutely on “auto-pilot”, and without any human pilot monitoring the flight? I know what my response would be. Remember, there are fully no guarantees that any of these foreign exchange trading androids will print money for you. Do not accept me? Then just read and re-read the sellers “Terms and Conditions” or “Disclaimer notice”, I believe it’ll talk for itself!

Day Trading Robot

A day trading robot? Gee Wiz! Sounds like science fiction, right? It did to me just a few years ago. I would have never imagined that such a thing was possible. First of all, I came from a school of thought that believed nothing could be programmed to trade the markets successfully. I strongly believed this and argued with anyone that crossed my path. “No automated day trading system could tackle the stock market; impossible!” or so I thought. I also said to myself, “How could a computer program successfully factor fear and greed [the emotions that move the market] into an equation designed to extract consistent short-term profits from the market each and every day?” Well…,

…the bad news is that there really isn’t a robot to day trade stocks. Sorry to burst your bubble.

But…the good news is that there is one that day trades currencies (you know, the great forex market that I love and have bored you over and over with throughout this website?).

No folks; this is not “Forex Made Easy.” This is “Forex Made Easier”- An automated day trading system that NOT ONLY comes with a highly sophisticated set of conditions to enter and exit the market, but one that also pulls the trigger (that is, executes the trades) for you, using proper money management without which day trading is doomed to failure. [If you have not read why I strongly believe that the forex (short for foreign exchange) market is the purest and best market to day trade in the world, go to the currency trading section of this website]. This automated system is also known as Forex Robot or FX Bot (for frequently asked questions about the trading robot, click here).

Yes day trading fans. This day trading robot (or bot) not only finds the trades, it takes advantage of them when it finds them.

When the forex trading robot was presented to me for the first time, it was difficult for me to accept the whole concept. I got to admit, I was pretty skeptical. If the explanation wouldn’t have come from the best two money managers and traders I know (and personal friends of mine), I wouldn’t have even listened. But after a while, I was sold. “You, Dan? Mr. Day Trading Tutor?” – “Telling us that you believe in a day trading robot after writing an endless amount of information about how people could learn how to day trade, how much you believe in day trading, how you have helped day traders in the past, etc., etc.?”

Whoa, whoa!!! People, don’t get so exited. All of these things are still true. There are people that will learn how to day trade successfully and become successful traders. I am still involved on a very limited basis on the training of some day traders. But there are also many people out there that will never succeed as day traders and others that, after having tried it, will realize that it is not for them.

This is the truth; plain and simple. And even if the day trading robot wouldn’t have existed, this would have still been reality. The FX robot is just something extra that I feel can help not just unsuccessful traders, but also investors who can add something different (a new component) to their investment portfolios; and believe me, this is completely different than any investment I have ever seen before.

I created Day Trading Tutor to give you the reality of trading. Well, talking about the trading Bot is an extension of this goal. Since it exists and can help you, I must tell you about it – period!

Ladies and gentlemen; I am sorry if I sound really exited about this trading Bot thing – so exited it made me that I even became part of it in order to be able to offer it to my clients, friends, and family members (read “How are you involved in the day trading Bot and are you doing it just for the money?” below. I like to be very clear about the things I say. It makes me sleep peacefully at night. The thing is that I haven’t been part of a great project like this for a long, long time. The money managers and traders that designed and monitor the day trading robot on a daily basis have become personal friends of mine in the last few years. They are great guys and exceptional traders. They have been top-ranked in the past in the forex money management industry. I don’t like recommending traders or money managers to people, but this is an exception.

The robot program rocks!

Which Forex Robot Is Right For You?

There are 7 factors that should be considered in your selection of a Forex Robot:

1. Total Automation
The trading robots are designed on pre-determined strategies and can perform and execute trades for maximum profits. These trading robots should have been programmed according to skilled forex professionals and literally forex trading robots that handle your trades for you.

2. Pofitibility Records
It must be said, we want to use a forex software that has been tested and proven to make money-making trades. And not only must it be profitable, we want the one that outperforms other competitors.

3. Successful Backtesting Results
Successful backtesting results prove one point – that the forex trading software has the potential to make profits on live trading. However, that said, it does not always guarantee a successful forward trade.
After all, backtesting does not take market conditions into account. When you trade live, you will realize that market and world news can instantly lead to price fluctuations. The spread between bid and ask prices of different currency pairs may widen in such situations. However, successful backtesting is the first step to evaluate a forex trading software.

4. Forward Live Trading Results
Positive live trading results are still the most evident proof of whether an expert advisor is up to it. Rarely will software suppliers provide such results right before your eyes but a glance at their time-marked live trading account is good enough.

5. Safeguard Features
It is always safe for the software to include proper safeguards as features. This is part of prudent money management. After all, it does not really matter how profitable the forex trading software has been for its backtesting and live trades. We will never know how the forex market will play out in future and the software needs to be properly configured to ensure a level of safety and assurance.

6. Drawdown Below 15%
The term “Drawdown” refers to the percentage loss in value as a result of a trading strategy before it bounces back to its original investment capital.

The drawdown is a good indicator of the risk level of the strategy and hence the corresponding level of risk the automated forex trading software is programmed to handle. Some forex robots are configured for drawdowns as high as 45%, which to me is ridiculously high!
Ideally, you should choose a forex trading robot that has a drawdown of maximum 15%. This also suggests that the strategy behind the robot’s trades is sound.

7. Money Back Guarantee
Make sure that the software vendor who offers the forex trading robot also provides a 100% money back guarantee. Since you will be able to use a free demo account, the risk of using an expert advisor is literally zero!

In summary, a really good forex trading robot/expert advisor is firstly one that runs on autopilot, requiring little intervention from you as the user, and secondly, backed by a solid and profitable strategy created by an experienced and top forex trading expert.

Its More Than One: Kind of Forex Robots

Forex or the foreign exchange market is one of the biggest trading markets and also among the most volatile.  Forex trading can either be done manually or buying and selling through a broker or a financial brokerage firm. It can also be done by using the automated process like using a software or an expert advisor also known as a Forex robot.

Generally speaking, Forex is trading in the international currency market. Forex market deals with all the currency trading in the world. Because of its high level of unpredictability, some would refer the Forex market like gambling.  Currency values change very fast, that you would need good analysis and at the same time, luck, to be able to land a good transaction.

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