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Forex Robots: Know Thyself

Published 02/23/2013, 07:02 AM
Updated 07/09/2023, 06:31 AM

If you research the many articles and reviews on Forex robots and expert advisors, one of the first points you'll note is that some traders achieve success with them while others do not. Another key point is that traders always need to apply work and judgement to operate these tools successfully and profitably. Such an outcome does not happen by itself.

In addition, reviews on this subject clearly demonstrate that the traders that do attain success, have only done so after they have performed a considerable amount of time tweaking the settings of their robots or expert advisors. There are also many cases showing that some of these traders have even provided good examples about the high levels of patience required to assure success.

Some traders have even gone to the lengths of promoting and selling their guidelines together with lists of their unique settings for their robots or expert advisors. Such individuals have not only undertook excessive research into learning how their automated solutions work, but have also taken the time to optimize them to full trading potential.

Consequently, you should discard the myth that all a trader has to do is purchase a robot or expert advisor, install it and then “set it and forget it”. In reality, this course of action will not generate anywhere near optimum trading profits. However, it is worth noting that many automated solutions are backed by very good support and installation services.

Is there a way that you can easily optimize a robot so that you can obtain its maximum performance? Yes. You basically need to study, and learn to implement a powerful Forex methodology. You certainly should not be daunted by taking this step as most methodologies have been designed to be user friendly. Instead, you could well find that this task will be enjoyable and enlightening . After you have mastered its concepts, you will find that you will be able to evaluate robots in your stride.

If you decide to purchase such trading tools, then ideally you should do so by basing your decision on “know thyself”. A good methodology will help you do this, so that you can make a selection that best suits your trading style. Another important point to consider when undertaking this task, is to realize that one of the better strategies is to utilize several robots that are not correlated in parallel. This means that should one of the robots perform very well, then the other robots could make up any losses if they are generating positive returns. There are several reviews out there on all available robots.

Forex robots come in all shapes and sizes. Some attempt to utilize a global approach to Forex. For instance, they do this by trading two currency pairs, such as the GBP/USD and GBP/JPY simultaneousl,y producing a portfolio-type approach to Forex trading. Such expert advisors possess constructions that are based on a price approximation algorithm and an automated risk and money management strategy. They then attempt to attain a steady balance growth using automation.

Others are based on a new construction called Correlated Time and Price Analysis (RCTPA), which helps them to determine new trading opportunities by analyzing years of historical market condition. As Forex follows specific trading patterns, they identify them in order to generate profits based on these price patterns and trends. Such robots attempt to utilize artificial intelligence.

As such, instead of activating the same type of trade constantly, these expert advisors learn and adapt from their previous trading decisions. The RCTPA facility determines why trades produce losses and will lean on this information to improve its future trading performance. Consequently, this type of robots tries to seek out the optimum winning trades by eliminating those that will produce losses.

In summary, you will discover that there is a wealth of information for each of these robots or expert advisors. In fact, some websites are totally dedicated to reviewing them. However, you should not just run away with the idea that you can set and forget them; you should use a proven Forex methodology to help you perform a thorough due diligence on all such Forex tools.

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