Internet searches abound with offers to buy Forex robots – automated trading software commonly known as Expert Advisor (EA). These robots claim they can make you millions just by pressing a button. Unfortunately, however, these don’t always work and may even cost you money if the market moves quickly – this applies even to professional traders and quant funds on Wall Street who rely solely on trading robots!
Reason being, robots use pre-wired mechanical systems that cannot accommodate for changes in market conditions. Simply put, they look for technical signals and follow them without regard for emotional biases or any consideration of other possible factors. Furthermore, monitoring and controlling trades is difficult without constant surveillance from an outside source and overly sensitive robots may increase risk significantly – possibly leading to complete account losses!
How to Purchase a Good Forex Robot
When shopping for a forex robot, the ideal approach is one which allows you to customize its settings and parameters to best match your trading style. Also essential are compatibility checks with brokers and platforms as well as any available demo accounts – be wary of those requiring minimum deposits before trying them out; read user reviews thoroughly while seeking out review sites which provide an option to verify if user comments are genuine.
Begin with smaller investments instead of large sums to test and ensure that you find one that meets your needs, before ploughing through too much capital at once. Starting small will also prevent over-leveraging which can result in substantial losses; additionally it allows you to monitor how the robot performs over time to see if its results remain stable over time.
Considerations should include the trading strategy, price settings, compatibility with your broker and trading platform and ease of installation and use. An ideal forex robot should be easy to set up on existing trading platforms with limited settings that you have to configure for optimal results based on your trading style and preferences.
Finding a forex robot with a low drawdown percentage – which measures how much of your trading account was lost over a given time – is also recommended, as higher drawdowns can indicate poor robots that require larger margins to cover losses. Aim for at least 30% drawdown or lower, and select one with multiple payment methods so payments are easily made.