Automatic Forex Trading – Things you must know

The popularity of forex automatic trading keeps growing, despite the uncertain returns generated by utilizing them. If you are involved in trading currencies, there is more than a small chance that at some position in your trading profession you have considered buying one of the software promoted online as the maximum returns in trading, the best robot that awes the experts and pros with its successes. There is slight advantage to these flashy claims, but if you are intrigued by them, here are some things you should know before buying or using any of the forex automatic trading robots.

Forex robots are automated systems that open trade orders in the position of a human trader. Actually, the intelligence and ability of a forex robot is fully dependent on its creator. The forex robots works following the pre-programmed commands under all conditions; they do not change, modify or adapt it to changing circumstances in the market, but will attempt to reduce losses based on the commands provided to by the programmer (creator). The orders executed by the robot are based on the technical analysis tools, but elegant programmers will also use back-testing to verify the results of their robots.

10 advantages of Using Forex Automated Trading:

1) There is no learning curve, since previous knowledge of the Forex market is not necessary. Forex traders do not need to learn about trading systems or techniques to trade, they can simply rely on the proven strategies of the automated systems.
2) Traders can start earning from the very initial day they adopt automated trading. Because there is no down time due to the education process.
3) One can successfully remove emotion from trading, making greed and fear no longer a matter.
4) Traders can allow proficient strategies do the work for them, allowing professionals to manage their money.
5) Even if traders have no time to analyze the market in detail, they are still able to play a part in it.
6) One can take advantage of opportunities 24 hours a day: when employing automated trading, one does not require always looking for the next trade opportunity. Traders can stay calm as the automated system regularly scans the market for opportunities.
7) There are higher risk management options, while traders can really make their own personal hedge funds by choosing signal sets they wish and the number of lots assigned to them.
8) In spite of whether traders are working at their regular jobs or sleeping, they can relax assured that their money is continually working for them. All they have to do is choose their ideal trading systems.
9) Once a profitable system is build, all one needs to do is get it. There is a broad selection of automated trading systems from which to select. At any one time, thousands of programmers and traders are working to make new and better systems.
10) Automated forex trading allows traders to focus on improving their strategies and money management systems, by freeing up traders’ time

What the dealers of these robots will not tell you:

There are major problems with the logic behind the making of the automatic forex trading robots, and the actual results generated by them. The primary and obvious matter is the fact that the robots have never been tested in real market settings. In almost all cases, they are tested on a demo account or historic data.

The second matter is born of the fact that by employing a forex automatic trading robot, you are mostly handing over the control of your funds to a software that has no brain. It is programmed to run consequently to a set of rules at all times, and has no skill to adapt itself to changing situations. This is maybe the most vital disadvantage of employing a robot in the forex market where change is the only stable.