subject: Choosing An Effective Automated Forex Trading Robot [print this page] Since it was introduced, the automated Forex trading robot has revolutionized Forex trading. These systems make it possible to trade using a Forex trading program in place of a person to do the transactions manually.
To make money from Forex trading, one must be able to interpret what are known as leading and lagging indicators. Doing these interpretations is not an easy task . It is complicated by factors like getting different indicators from different systems and quick changes in the indicators. These is why automated systems were such a hit. They simplified the process, gave accurate signals such as the indicators which directed whether one should buy or sell.
There are several versions of systems created by different companies. Some give better results than others. It is however important to note that even with a system that gives good results, there is no guarantee that the system will always give the same good results.
The systems come in two categories. One is automated trading that is done through a managed Forex account. Some of them but not all systems trade using automated Forex. Either way, the trading is passive. However, with automated Forex, the robot or trading system carries out the transactions and not a person.
The second category consists of one using either their own Forex trading system or that of another person. The program that is used also has automated functions. To use such programs, one needs to have programming skills. There are also other kinds of programs coming up whereby a user can choose parameters and can test the performance of the system.
An effective system must have some key abilities. One is that it must be fully automated. Only with full automation can a system be able to totally eliminate reliance on human input which ensures that they system works round the clock without being monitored. There should be absolutely no need for Forex brokers to keep watching and monitoring accounts.
A good system will also be a low account investment. Automated systems are able to completely eliminate losses because of the way they are constructed. A good one will therefore be make it possible to trade even with a low initial trading amount.
An effective system should also have back testing that yields results. This is crucial as simulations are given based on previous performance and hindsight. Another aspect to watch for is inbuilt loss protection. A system must have these for users to be sure that they will not incur big losses as a result of wrong signals.
Lastly, an effective system must have the constant monitoring of experts for it to keep improving its performance. New strategies, products and methods are always coming up and a system must be constantly reviewed and updated for it to give maximum yield.
An automated Forex trading robot should be profitable to brokers, traders and institutional investors. For brokers and traders, it should be useful in giving them crucial signals like indicators while allowing them to still be able to manage their accounts. For institutional investors who are interested in investing in different asset classes, they should be able to gain from diversification and Forex market investments. For brokers, a good system will make it possible for them to offer automated trading as an extra service to their clients.
