Another Forex Trading Strategy that has become popular recently is the use of its Robots – Automated Forex Trading software that trades on your behalf 24 hours a day, 7 days a week, 365 days a year. While it might sound like a soft option, its robots shouldn’t be dismissed. These systems operate according to the parameters set by the user, so the Robot’s strategy matches your own, but it trades without hesitation and does not deviate from the set rules.
There a number of advantages to using an automated it system: they never sleep, don’t get nervous and are constantly alert to all the relevant factors that influence their trading decisions. Trades are executed automatically, and they never miss an opportunity. Think of a Forex Robot as an obsessive compulsive forex trader that never sleeps. It can’t think for itself though, or make “judgement calls” -it operates solely according to the parameters set out.
At times this can mean that opportunities for greater gains are not taken or potential opportunities that fall outside the scope of the systems mandate will be overlooked, but on balance a complex forex trading robot can be an excellent its strategy all its own.
Do they work?
The simple answer is “YES” but the more complex answer is that in some cases a human trader could do a better job. There is no doubting that Forex Robot’s can deliver results, there are plenty of published “back tests” showing live trading performance of various automated trading systems, but which systems perform the best is open to debate.
The thing to remember with Automated Forex Trading is that it isn’t a mutually exclusive strategy – you can have a forex robot trade along side your live trading platform and track it’s performance against your own. Initial cost outlays vary between systems, but rarely exceed $100 or so, a pretty small investment given the complexity of the software and earning potential it creates.
Even from a learning perspective a Forex Robot can be a good investment. They often come with in depth guides to how you can set up the system to perform best and these guides are written by experienced and successful forex traders. They often contain tried and tested forex trading strategies and you can gain some real insight into how not only to improve the performance of the Robot, but also how to improve your own performance.
From a strategic perspective, Automated Forex Trading should be seen as part of an overall forex trading strategy, not a substitute for one. Do a little research on the different automated software available and read the reviews available on line. Ask around in forums and then settle on one to try. If you’re a little hesitant to try a Forex robot just remember this: The best forex traders operate according to a set of rules that they have found to work, and many of these automated systems have been created by exactly these traders, which should give you some confidence about their ability to trade effectively for you. If nothing else, a good robot can be an effective part of your Online Forex arsenal.
Article Source: http://EzineArticles.com/5085609