by Jason Marcano
I long had dreamed of turning on a computer and having it do all the background work and actually make trades for me while I went golfing or something. On a dare from a trading partner, I decided to try them out. Trading robots or Expert Advisors as they are sometimes called, are quite the rage these days, judging by how many are offered. But do they actually work.
There is no better way to find out than to try one for yourself, so I set about months of testing using many different trading robots. I will admit that most did not work well or at all, and resulted in big losses when doing the tests. But out of all the systems that were looked at several did produce consistent results and monthly profits which are still being used.
One thing about trading, is that it is a numbers thing, you may win 8 out of 10, but there are still going to be those two losses. This is what trips up most people who trade, as it becomes emotional to lose any money at all. The real key to accumulating wealth is to find an advantage no matter how small and press it. Forex auto trading is this way, if you can find a system that keeps adding to your position in spite of small losses, you can create some wealth.
All of these trading systems work a little differently in regards to how they seek to trade, some are very risky others seek small increases everyday. I found that the ones that seek small increases were much more likely to succeed than the ones that take positions and wait for the market to move in their direction. They also suffer quit small losses compared to the huge losses that trend systems can go through.
One good way to check whether any auto forex trading software is too risky would be to look at how much maximum it has lost on its back test results. Back test results are usually available on the robot’s main website. The really good ones also have live trading results the update daily or every several hours.
An important feature would be, does the currency trading software detect changes in the spread of the currency pairs? If so does it take that into account for the positions that it takes? This means if the strategy is based on taking 10 pips a trade and the spread moves from 3 pips to 8 or more, does the trading robot know this and stop taking trades?
This is the one area where most trading software gets killed in real time trading. It is why so many currency auto trading software programs show fantastic historical results, and when you buy it and try it in a live market you get creamed. It is a huge factor in separating the winners from the losers in auto forex trading.
