Forex automatic trading is a relatively new development that frees Forex traders from the need to be chained to the trading desk at all times. With the advent of the Forex robot trader, any Forex trader can leverage on the market experience and expertise of professional Forex traders to profit from the Forex markets, even if they have never traded before.
That said, there are thousands of Forex robot traders out here in the market, so how do you differentiate between the best Forex robots and the ones that are pure junk? By the end of this article, you’ll be well equipped to make smart decisions when choosing your own Forex robot trader.
So how exactly does Forex automatic trading work? The idea behind Forex automatic trading is to take a profitable Forex trading strategy or system and quantify it into a set of rules that can be replicated by a computer program. Once the Forex trading strategy is perfectly quantified and replicated in that program, it is officially a Forex trading robot and is able to trade the Forex markets as well as the original Forex trader employing that particular trading strategy would.
Forex robot traders have a huge advantage over human Forex traders in many ways. First of all, Forex robot traders are able to analyse dozens of trading indicators and factors, while a human mind can only process limited amounts of information at a time. Secondly, a Forex robot trader will never make emotionally affected decisions nor be prone to errors in judgement. It sticks to the rules at all times, and is 100% consistent and reliable.
In an ideal world, every Forex robot trader in the market would be capable of making significant profits in the Forex markets without the risk of wiping out trading accounts and breaking down when market conditions change dramatically. The downfall of Forex automatic trading is, not surprisingly, the human factor. Given that it’s very easy for anyone to throw a Forex robot trader together these days, combined with the fact that selling them is a very lucrative business, there has been a rise in unscrupulous developers putting out robot traders that are at best poorly tested and at worst an outright scam.
The best Forex robots are ones that are developed with longevity in mind. If you do a quick scan of the robot trader marketplace, you will find that most of them promise extreme returns of 100% in a matter of weeks or even days. Yes, it’s possible, but that kind of return comes with a very extreme risk of destroying your trading account as well. Forex robot traders that aim for a return of 5-10% a month are much safer and have a much better chance of returning a consistent passive income.
When it comes to commercial Forex robot traders, you can never be too sure. It’s important that you do your own testing to verify their profit projections, and only buy a Forex robot trader with a money back guarantee from a reputable vendor like Clickbank. Yes, Forex automatic trading will save you from going through the expensive and difficult learning curve that every manual Forex trader will go through, but only if you make a wise selection when it comes to the Forex robot trader you commit your funds to.
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Thad B., Professional Trading Systems Developer