Ways To Choose A Profitable Forex Robot
Did you know that you are doing yourself a great injustice as investor by denying yourself some profits? You must be wondering how? Well, by bumping on any forex robot that comes your way. Of course, not all forex bots are really what you view them to be. In fact, some are just scams.
That poses the need to learn more about the forex robots before making the right decision of settling on one or more. Imagine for a moment coming along a forex robot on the internet with all the features you have been looking for but it turns out it is a scam after depositing your cash. Admittedly, this has happened to many forex beginner investors.
In essence, the journey to finding a great robot that will satisfy all your needs is never simple.
Checking at the trading results on the real robot
One thing you have to stop doing is looking at the face value of any robot on their ads. And have you ever noticed that scams have the best adverts? They do. In fact, you can easily fall unto them and mistakenly deposit your money. That should tell you that, what is in most adverts on the internet are just misguided information and a cover-up.
If you are to get the real and right trading robot for you, you will need to gauge it by their results.
The cost of the robot
Automated bots are increasingly becoming popular and many all across the globe. This has given the scams a very awesome breeding ground hence so many on the internet. But the good news is that you don’t have to be their victim.
Well, the cost has never been a determinant of a quality robot, that could be a real shocker to you. I can do a wild guess and tell that most forex traders view expensive robots as being the best. And they have the track record to show for it and is well documented.
Their trading strategies
Well, here you need to check at their embedded algorithms and indicators that they use in their trading. A good forex robot does not give you the liberty of choosing the indicators you want to use. It is well chosen and the right settings is applied. In addition to that, the algorithms they are using should not be oppressive to you as the trader.
Reviews from other traders
The fact of the matter is that there will always be dishonest independent reviewers who will ranks a scam the best and the genuine as the worst. We have all witnessed that. However, there are genuine independent forex traders who review a robot based on their experience with it.
You can decide to contact them personally to know their stand on a certain robot. After all, they have nothing to lose for telling you their experience. This is where you will learn about their customer care services and how they treat their customers.
Accounting basics
To wrap up our journey is how they treat your money. This is an important factor because we are all looking for the money by investing in forex. First, consider the initial lot of cash they need from you and ensure that it is not exaggerated.
Secondly, look at the initial deposit you are required to make. Most will need a minimum amount of money deposited so as to start trading. Here you also need to check the payment methods they are using. It must be safe.
Finally, check the ease of withdrawing after you have made the money on their platform. Avoid any robot that takes weeks before depositing your money. Averagely, it should take you 24 hours to have your money on a business day.
Conclusion
In a nutshell, a good robot that will earn you profit should satisfy all the above ways. Now you can just make it happen; you don’t have any reason to be conned anymore. In short, the above is all that really matters.
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What is forex trading and how is it done?
Automated trading vs manual trading
In this post, we explore what is forex trading, how to start forex trading, how to trade forex and how does forex trading work. The differences between automated trading vs manual trading. While manual trading has been around much longer, automated trading is now more readily available to retail traders which has only intensified the debate on which style is best. Let’s dig a little deeper into both!
What is manual trading?
What is manual forex trading, how to start manual forex trading, how manually to trade forex and how does forex manually trading work. Manual trading is where a trader will make a decision on when to buy or sell an asset and then place the trade themselves via market or pending orders. The manual trader may also scan multiple markets first to actually find an opportunity before deciding to act. In essence, most of the work is done by the trader which means their output is only as good as their input.
For example, an intraday Forex trader may spend the morning scanning through a list of different currency pairs to find combinations of technical trading events using indicators and other types of analysis. They may then either place a buy or sell order themselves or build a watchlist and set alerts to notify them when an asset’s price has reached a price level they would consider buying or selling at.
The trader may then make the decision to buy or sell by placing the order themselves. Some traders may also opt to manage trades themselves by moving stop loss and take profit levels as the market moves with them. In manual trading, it is the trader which has to make all the decisions and act.
What is automated trading?
What is automated forex trading, how to start automated forex trading, how to automatically trade forex and how does forex automated trading work. Automated trading is where a pre-programmed algorithm will make all the decisions on what to buy and sell, and when, based on the instructions written in its code. A trader, programmer or ‘quant’ may code their manual strategy so when certain rules or events occur, the algorithm will automatically take trades.
For example, an intraday Forex trader may hire a programmer to convert their manual trading strategy into an automated trading strategy. After some testing, they may realise the conditions are too loose or too constrictive. After a period of optimisation, the trader may be satisfied with their algorithm and then go and test it using a demo trading account. Even when they go live, the trader may test it on a small account first before allocating more capital.
It is a marked difference to those who believe their manual trading rules will work in an automated trading system. Successful automated traders consistently test, optimise and develop their systems slowly. In this situation, the trader doesn’t need to be there to find the trade or execute the trade. They can spend more time optimising their trading systems and building more.
And what is the best automated trading software available? Well, one of the most popular platforms for auto trading and manual trading is MetaTrader. You can download it for FREE today and explore all of its features to trade on multiple asset classes!
Automated trading vs manual trading
When it comes to deciding which style of trading is actually best, there are various factors at play such as experience, time, resources available and more. Below is a list of the pros cons for each type of trading style:
Auto trader pros
Completely removes emotion from trading decisions. Most new traders simply struggle to keep on trading a strategy when they have had a few losing trades thereby never achieving a consistent set of trades to allow a statistical edge to work in their favour. Auto trading removes this emotion as the trading robot can execute your trades without any emotion.
In this style of trading, traders can build a portfolio of different systems to cover different market conditions allowing for a level of diversification in their approach. As the algorithm can also show all the previous historical trades, traders can quickly identify whether a system has worked historically and gain useful statistics to understand when it will stop working in the future (such as exceeding historical consecutive losses, etc).
New traders can start out with a demo account to test different strategies available for free or purchase one from the MetaTrader Market place. This is a useful way to see if auto trading is actually right for them.
Auto trader cons
The past does not guarantee the future. Just because a system has worked historically, it does not mean that it will work in the future. Market conditions change, volatility changes, trends change, etc.
It is very easy for auto traders to over-optimize their system and change criteria to make their historical results look fantastic. Known as ‘curve fitting’ among auto traders, it is a very common issue. While traders may find the best variables for their system on historical data, it doesn’t mean anything on future price data.
There is a cost to hiring a programmer to help code a trading strategy. Any optimisations or changes may also require more cost to investigate and amend. The other option is for traders to learn how to code themselves which for most would be another con.
Manual trader pros
Through manual trading, the trader has to learn about the market they are trading, the tools they are using and methods of making trading decisions such as technical analysis and fundamental analysis. This is a great way to build knowledge about trading which can then be useful when trying to devise an automated trading system.
In manual trading, traders have a bit more control on what to do when. From a mindset perspective, this is powerful. Especially if a trader is trading on live money. Knowing that you have a trade on, inputting the details and seeing the stop loss on the chart yourself can help to feel more settled in managing an account.
With manual trading, a trader can actually identify what is working for them and what is not working for them. Typically, most traders struggle with the mindset aspect of trading and even more specifically, taking losing trades which is an inevitable part of the business. But by understanding what is not working, they can work on it to become better.
Manual trader cons
Manual trading does take time. The trader needs to perform research, be there to place their orders and spend time reviewing their trades and individual behaviour to try and reach superior performance. Some of these tasks can be semi-automated though. For example, a trader could use pending orders to instruct their broker to close trades at profit or loss at certain predetermined price levels.
A disciplined mindset is required to trade successfully. Many traders often let their emotions get to them and start to ‘gamble.’ It is up to the trader to maintain discipline in risk management at all times, making sure they don’t risk too much to allow for losing trades, making sure they actually trade consistently to allow a statistical edge to work in their favour and making sure they focus on their processes rather than all the noise of other people’s opinions.
Many manual traders struggle with being solely accountable for their trading account and will often blame their strategy, or their platform, or their broker, rather than look internally at their own behaviour and decision-making abilities.
Fortunately, manual traders can access automated trading services to help identify potential trading opportunities! With Your broker you can upgrade and supercharge your MetaTrader trading platform with the Supreme Edition plugin.
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