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Let’s face it, forex trading is a profitable business especially if you’re well aware of the recent market movements and price fluctuations. To effectively deal with the diverse trading systems, you have to dedicate some time to learn the market basics and other relevant forex essentials. This means that you have to strengthen your scope of learning to get the most out of the forex business.
While there are diversified skill sets and technicalities in trading, there are two types of forex traders – manual traders and the ones who choose an Expert Advisor (EA) or forex robots to place trades on their behalf. In either case, you can win or lose.
What Are Forex Robots?
A forex robot is basically a computer program that analyzes different market signals to help the trader in the decision making process. These programs vary as they are developed by different individuals and programmed to work on diversified principles.
Dissimilar to manual procedures, automated robots can work 24/7 and they are not influenced by any human emotions such as greed, fear or excitement.
With forex robots, you don’t have to study complex graphs and charts or keep a strict eye on market movements. All you have to do is to insert instructions, sit back and wait for the returns.
In this post, we’ll have a look at ways to dominate the markets with forex robots or Expert Advisors.
Pick the Right Forex Robot
First and most importantly you have to pick the right robot for your trades. There are hundreds of FX trading robots available these days that more or less claims to deliver similar great results. But, many times what you get in exchange for your hard-earned money is a worthless program that can do more harm than good for your trades.
Keep in mind, the profitability of your trades heavily depends on the selection of your forex robot. Thus, you have to be extra cautious while picking a robot for yourself. One of the ways to find out a great EA is to skim through different review websites like Forex Robot Nation to see how that particular robot is carrying out trades for your peers or other forex traders.
Run Many Different Tests on Demo
Once you have picked your EA it’s time now to run many different tests on demo. Since most of the present-day EAs use live data, the backtesting option cannot provide reliable results. Thus, it would be better to do demo testing on your robot to see whether or not it’s a right fit for your trading style. Before using your live account, try to run your EA on your demo account for at least 6 to 8 months.
It’s also important that you test your account on routine basis in order to see if it is providing the same consistent results.
Analyze Your Demo Results
Assess your demo results accurately to avoid any mishaps. Try to test your trading strategy on the same data you’re planning to trade it with.
Take Your Best Results onto Live Accounts
It’s best to begin with a demo account first especially if you’re a novice trader. Once you have established a system with your trading strategy and tested it on your demo account, it’s time now to go live.
Take your best results onto live accounts. Also, it’s important to understand that testing your strategy on live account will be different than your demo account. Besides technical dissimilarities, you would be required to feel the emotional pressure on live account. Ideally, you should invest small amount on your live account initially. This way you can develop persistency in your trading approach.
Many investors think that once they test their strategy on a demo account, they can follow the similar procedure with their live accounts. But the fact is that the handling of these accounts are very different from each other.
Also, there are traders who prefer to skip the demo testing and directly run their strategy on their live accounts. Keep in mind, there is no room for error when you test your strategy on your live account. This is certainly the biggest reason why lots of people lose more money than they should.
There is no denying the fact that the automation is the future of currency trading. However, to dominate the market with forex robots, you have to follow the aforementioned steps to get the most out of the process.
Make sure to invest in sufficient time to pick your EA and don’t forget to test it on your demo account first before going live. This way you can successfully handle risk while optimizing your profit margins and overall returns.
What steps do you follow to control the markets with your EA? Feel free to share your experience in the comments section as would love to hear back.