Introduction
Do Forex robots work? Let’s be honest, 90% of what you’ll find out there advertised in magazines, late night TV and on the internet is just pure junk. That said, there are mechanical Forex systems being traded in hedge funds, banks and other financial institutions every single day. It uk forex trading all boils down to the design of the Forex robot in question, because like any other system, if you put garbage in, you’ll definitely get garbage out. By the end of this article, you’ll know how to toss out the garbage to uncover the best Forex trading robots out there.
How To Find The Best Forex Trading Robots
Obviously, not every Forex trading robot out there is legit. There are some very poor robots out there, and whether that’s due to sheer dishonesty or just bad design is debatable. It doesn’t matter, because your job is to find the best Forex trading robots to trade with solid money management principles. Here’s how I cut through the garbage very quickly: I ignore any Forex robot trader that promises a huge return in a matter of weeks, and I ignore those that promise a very high win rate. Based on my extensive testing experience, I’ve come to learn that Forex trading robots with these characteristics just don’t work, period.
Once you’ve sorted through all the junk, you’ll probably be left with one or two promising candidates at the most. Great! Make sure that they both have a 60 day money back guarantee, and then put both of them to the test. You literally can test them out with no risk on your part, because you can just return them if they don’t deliver on what they promise you. Obviously, you don’t want to risk any real money on them until you are sure that they actually deliver on their promises, so you will need to get a demo Forex account that supports the MetaTrader 4 platform.
Forex Trading Robot Testing & Optimization 101
Once you’ve bought and downloaded the Forex trading robot in question, you’ll already have a very good idea about whether it’s potentially one of the best Forex trading robots that you are looking for. The best Forex trading robots tend to be more transparent with their trading rules, and allow you to set your own money management parameters. Make no mistake, money management in Forex is what is really going to make or break your system. I recommend risking 2% of your demo capital if you’re more conservative with your risk management, and 4% if you’re more aggressive. You’ll want to trade your system for at least 4-6 weeks on the demo account before you make your final judgement about the system.
Finally, once you’ve satisfied yourself that it works, don’t put in all your capital to trading the system all at once. That’s because losing periods tend to follow winning periods, and vice versa. To minimize the effect of chance on your trading balance, make your deposits in a few increments spaced out over a period of a couple of weeks or a month. Other than that, if you’ve indeed found one of the best Forex trading robots that actually works, congratulations! Be sure to keep your eye on your money management, and maintain your system regularly to keep it in tune with the markets.
I’ve been a full time Professional Forex Systems Developer since 2007. Forex is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own trading. If you’re just getting started in trading Forex, or if you’d like to take your trading to the next level, I’d love to help!