Friday, July 25, 2014

The Essentials to Picking a Forex Robot



If you follow Forex in any way, you know that Forex robots have become wildly popular over the past few years. With the overabundance of Forex robot sales pitches, it is hard to find a robot that is actually successful. In this article, we will show you how to find the best Forex robot for your trading style, as well as what you need to know about your EA and what your realistic goals should be.
If you are looking to purchase a Forex robot, you are most likely looking to make a profit. This means different things to different people. You may be content making $50/week, or you may be seeking uch bigger money. The greater your risk tolerance, the greater the chance you will strike it big. At the same time, taking on more risk also means the chance to take bigger losses.

Your risk tolerance is going to be a key factor in dictating which robot is best for you and your trading goals. After determining this, you should look for robots that suit your trading style and analyze various statistical factors including maximum drawdown, profit factor, expectancy and efficiency. A majority of this information can be found in the Best Forex Robot report at www.bestforexrobot.com.
One thing you should realize upfront is that finding the robot that is best for you is going to cost you both time and money. There are numerous elements to look for when choosing your robot. Much of the key statistical information needed to make a sound decision can be found in the best Forex robot toolkit. In this article, we will focus on one key criterion called robustness.

It is crucial to understand that most Forex robots only work efficiently in certain types of markets. What does this mean? Some robots perform better in range bound markets while others are more effective in trending markets. The problem lies in that it is often very hard for a trader is to determine if the market is in a range or trending. One key thing you must remember is in order to achieve success with your Forex robot you should never give up the gains that it makes during a favorable market when the market is unfavorable.
So what does this mean? Assuming that your robot is most efficient in a trending market, as soon as the market starts to range you will run into complications and might begin losing money. In order to be successful with this robot you cannot lose money during the ranging market that you made during the trending market.
Furthermore, you must determine if your robot is sustainable which entails backward and forward testing it through a range of market conditions. If your robot's profitability is sustained, than it can be considered robust. Keeping this in mind, you must always remember that past results are never an indication of future performance. 

You need to assure that a robot has been both back and forward tested by the vendor before even considering making a purchase. Once you have decided to go forward with the purchase you need to perform your own testing. A good Forex broker can show you how to do this. At this point, if you are unhappy with the robots performance, you should return it if possible. On the other hand, if you are happy with the robots performance, you should run it on a live micro account at first so you are only risking minimal capital in the beginning.
Our hope is that after reading this article, you should now have the proper tools and confidence to embark on your robot trading journey. Let's take a quick moment to do a final review of what you need to be a successful robot trader: 

1.) Determine if your robot is robust and in line with your expectations of return.
2.) Perform extensive testing of your robot before taking it live.
3.) Start trading live on a micro account to minimize losses.
Following the guidelines above will help you get one step closer to Forex success.

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