subject: Forex Trading Robots - The Hidden Secrets Of Expert Advisors [print this page] Forex robots are starting to make real waves in the trading world. They provide numerous benefits to traders who are taking advantage of their support capabilities. You may hear these robots referred to as Expert Advisors or EA, and they contribute to the $3 trillion market turnover that occurs everyday in the Forex market. A good example of a well respected EA is the Forex Megadroid Robot.
As an expert advisor, Forex robots provide advice and information about when to buy, sell and close a deal. To do this, the expert advisor interprets and identifies the trading signals that they are able get from analyzing the Forex market.
So what do Forex Robots do?
As mentioned, their main function is to provide signals when it identifies a good trade. Some traders would like to be notified first before the robot enters a deal and the trader would manually enter the deal or exit from it. In addition, the EA could be programmed so that it can automatically enter a transaction without the traders intervention.
Forex robots can apply your money management strategy to their program, and incorporate it in the trades that they perform. Money management is all about establishing the level of risk you are prepared to take, and how much money you put into a trade. There are traders who choose to ignore money management, and opt for a free trading strategy. This could be a costly mistake though, so it is better to make sure that the Forex robot has the necessary money management settings or to avoid risking your money on reckless trades. Forex robots are also capable of placing, changing and removing stop losses.
To operate a Forex robot or an EA, you obviously need a computer, a stable internet connection and at least some knowledge on how Forex trading works. An account with a good Forex broker will be needed too, who would allow you to download a solid trading platform. You can use such platforms to monitor and analyze the market, and enter and exit trades manually. Once you have your account and platform set up it would be time to look at a good robot. Once you purchase a robot, you can immediately download and integrate it with your trading account and platform and configure it to make trades.
As with most things, there is a downside to robots. Yes they can trade for you 24/7, but doing so would involve leaving your computer turned on all day and night. So, there are some companies that offer virtual hosting, where traders can continue trading while giving their computers and trading robot the needed rest.
These service providers would require the necessary information so that they can host your trading platform. They would provide you with a username and password to have access to your server. If you consider trying out such a service, always test it with a demo account before trusting it with the money in your real trading account.
As reiterated by experts, having an automated trading system is not a guarantee of Forex success and untold wealth. It still relies on your trading skills, knowledge and mindset.
