Forex robots are very important tools in the hands of a good forex trader. They serve as trading assistants, faithfully carrying out commands above the limitations experienced by human traders. For instance they do not sleep, rest or ask for increase pay. This is one of the greatest contributions of modern technology to forex trade. Theforex market is a very versatile and liquid market where price fluctuatios occur every second. It is often impossible for a trader to sit on his desk trading for twenty four hours and the forex market never sleeps. This makes robots immensely important because they are program to carry out trading as instructed in the absence of the trader. This is very useful to most forex traders who do it part time in addition to a full time job.
Automation can be seen as a blessing and a curse. There are traders who will never think of automation because if something goes wrong, for example if the market situation changes drastically away from the foreseen circumstance, the software cannot use its intuition to make changes accordingly. This means that even for the trader who feels automation is the way to go, there is a great need for research to identify which software is most appropriate for his/her particular type of trading.
Like when discussing a trading strategy, it is not possible to point out a forex robot that is fail proof or that does not lose money, it boils down to a complex set of criteria which has the trader at in core because in the end it is the trader who is going to set this criteria and choose a trading pattern so even when the system fails, the forex trader has a great share of the blame.
HOW REALLY DO FOREX ROBOTS WORK?
The first point to note is that the trader is the one who would determine if a forex robot will eventually make profit or lose money. The reason is that there is need for much time to be devoted in studying the system and the market so the variables can be set right to suit the current market situation. What a good forex robot does is to analyze the market using powerful software and suggest possible trade decisions to be implemented. It is left for the trader to choose which he considers best. The trader can also allow the forex robot to make trade decisions and yes, they can gain money but they can also lose too.
There are many reports about how the makers of forex robots are con artist hoping to cash in to make money. This is true in most instances and how to tell apart the good from the scam is not so easy, so what can be suggested is that before one is purchased, a trial version should be used and reviews of many other users read to reach an informed decision.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.