Trading With Forex Robots
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Automatic Forex trading bots have gotten very popular in recent years. The platform of choice for most traders is Metatrader 4 and there are now hundreds of "bots" on the market. Another name for Forex robots is "expert advsisors" or ea's for short.
The most popular trading robot has been the FAP Turbo which has had mixed reviews. A lot of people reported to have made money with it during the first year and then said that it stopped working.
Another popular type of ea is a grid system. This type of system only works with brokers who allow hedging as it places multiple buy and sell orders at once. This type of robot attempts to regain the profits by adding to the position size and using a martingale bet system in some cases.
There are many different types of bots based on technical analysis systems to choose from however there is a lot of risk with using automated systems. Some of the risks include:
*your Metatrader platform could freeze and not open/close an important trade
*systems that double up or use a martingale approach have a high risk of having a "bad day" and losing everything
*a news release could cause your automated trade to go against you
*your system could run well for a few months and then suffer great losses
While trading with expert advisors offers a lot of opportunity, it's not clear at this time whether they are worth the risk. If you decide to give one of these trading bots a try be sure to trade it on a demo account for a couple months and then on a small live account if it performs well.
Think very carefully whether you want to risk your hard earned money with a trading robot. They can be a great tool to trade part of your account so that you are diversified but it is a lot of risk to trade your whole account. |
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Author Resource:-
Forexmentor has trained thousands of traders on how to succeed with forex. Check out their online forex training videos today.
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By :
Alex Harper
Submitted
2011-06-25 11:53:21 |
Article From Article Mayhem
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