In recent years the Forex market has become the most popular financial market in the world. And there are a lot of reasons for this, but the main reason is the large potential profit. However, the market has its own rules, and new traders should spend time for training and practice. Otherwise, they will repeat the fate of 95% of the Forex market beginners, which saw how burned down their capitals. In addition of knowledge lack, the main reasons of trader’s failure are emotions. Fear and greed have destroyed more deposits than anything else on the Forex market.
However, the opportunity to program a trading system, which based on technical analysis, has appeared with the software development. This is called an automated trading system or robot. It’s essential to understand that the computer is not smarter than a human, and the robot does only things that the programmer has laid in it. Thus, the robot cann’t trade better than his creator.
The advantage of using such software is that the robots haven’t feelings, and they will always trade by the programmed strategy regardless of market conditions and the number of the profitable or unprofitable trades. This is a huge potential of the trading robots.
Advices before buying a trading robot
However, a poorly designed robot cann’t lead the trading account to the bankruptcy faster than you can realize it. Therefore, you should be extremely careful when you are buying a Forex robot. And to help you in this choice, let’s look at some important points that you should consider before the buying.
Nobody can make 2000% in one day. Be skeptical of the advertising letters that prove the amazing ability of the proposed robot. Remember that if something sounds like a fairy tale, could it be really?
Capital management. If you don’t want lose all your money, you should choose a trading system (robot) which have the reliable capital management rules. Avoid robots which have a risk more than 3% of the total account size in a one trade.
A “Holy Grail” is not exist. This term is using in trade to describe a system that never loses. But like a “perpetual engine”, the “Holy Grail” is remaining the object of a fruitless search. Think about it, if you had a such system, would you sell it for $ 50?