Do Automated Forex Trading Software or Robots Work?

What exactly is a Forex robot? It is a software application specifically created to perform trades on the Forex market through computer automation.

Forex trading robots became so popular almost from 2007. As far I can see, some of them are still being sold and some new ones come every now and then. The question is whether they really work and who buys them and why?
Can’t people trade on their own? Do they really need an auto-trading robot to make money for them?
What Does a Forex Robot Do?

What Does a Forex Robot Do?Why would Forex traders want to use robots? Their main goal making easy money out of Forex market without doing anything manually or having to sit at the computer. Most Forex traders lose and when they get fed up of losing, they look for the other ways as the solution. And, robots look like a good solution at the beginning.

Robots users have to find a good currency pair and ideal time frame to trade in it to maximize their profits. This is what the robots developers let them know when they buy the robot. Some robots are able to scan numerous charts and watching their movements all at the same time which is beyond human capability somehow. Also, robots are programmed with parameters needed in making trade decisions. With embedded trade signals, they decide when or when not to trade.

Some robots offer solutions to find profitable trades even in erratic market chaos when the trending direction is unclear. By following the best trend, they can maximize their profits and possibly eliminate chances of taking losses. Obviously, trading against the trend leads to loss after loss while trading with it maximizes profits regardless of the method or robot that is used to trade. But wait a second. Such a description can be seen on the websites that promote those robots. Do a robot that can find and follow the trends really exist? I am going to answer this question shortly.

Most robots trade within the range. They make some pips trading inside the tight range during the slowest forex market time, while they usually set a few pips target and too wide or no stop loss. They succeed to make profit in most of the trades they make, because they make a few pips in each trade, but a sudden, strong and unexpected range breakout wipes out all the profit they have made. Some robots make money in a positive trend but lose money in a choppy market. Thus, finding a great trend to follow is crucial.

Automated Tradiing do the work for you. This is why robots became popular.
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