There are plenty of automated forex trading systems available today, and the question we have to ask ourselves can we really turn a profit with this systems? In short, the answer is yes, however we need to know what to look for in a quality forex robot.
One of the primary reasons traders fail is due to a lack of experience and misunderstanding of the psychological aspects of the market. There are more and more speculators popping up in the markets each and everyday trying to reach their trading goals in the forex market. Forex trading also involves a lot of risk and with that it requires one to have complete control along with excellent discipline. The problem is most traders, even the experienced ones either do not have the time to trade or cannot discipline themselves to follow a set of rules.
Fortunately for us, we've developed forex robots, or again, expert advisers that do the thinking and trading for us. One of the benefits to a good forex robot is it's ability to remove all human emotion from trading, thus making a sound decision based on a set of parameters that have historically proven themselves. Another benefit from expert advisers and forex robots is there ability to adapt to changing market conditions and to place trades even while you're away from the computer.
We have to ask ourselves, what does a good forex trading system look like? What are the key elements to a forex robot that can return consistent profitable results? A solid forex system will have a success rate of 60% or higher and the system will have the ability to adjust stop losses and targets accordingly to hit it's profit targets. A good forex system should be built around just a few currencies rather than trying to cater to all major currencies. The reason being, each currency tends to have it's own predictable ranges and movement. It's almost impossible for a forex system to be able to cater to each currency, therefore the ones that stick to just a few tend to be the most successful.
A good forex system uses proper money management and never over leverages itself. Though it's good to find systems with a 60% success rate or higher, ultimately proper money management will allow you to maintain consistent returns even if you lose the majority of your trades. How is this possible? Using a risk to reward ration of 3:1 or better. Meaning, if you win 3x the amount you lose, than you can be wrong 40% of the time and still come out a profitable trader in the end.
There are plenty of forex systems and robots to choose from. The good ones are not hard to find and sometimes can be right under your nose. Make sure do your research.
Tim Rohrer has achieved great success as a day trader. To review automated forex trading systems, visit forex trading software reviews |
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