Forex Robots

Three Simple Rules for Working with Forex Robots

Forex robots are software programs that trade the currency markets for you. However, forex robots should never be used as an excuse for you to abdicate responsibility over your own forex trading strategy. You may notice, after all, that the robot is trading with your money.

When working with currency bots, it's advisable to gain control over the situation early on, so that you are not sitting there like a dolt waiting for the robot to do all the work for you.

Here are three simple rules that can help you develop a positive working relationship with any forex robot:

1. Understand How and Why Your Forex Robot Will Trade
The most common reason for a human trader / forex robot relationship to go sour is bad expectations on the part of the human trader. Not bad in the sense of unethical, but bad in the sense of ill-informed.

Make sure you know, before you buy a forex robot, how and why your forex robot will make trades. What time frame will your robot trade with? Is your robot a scalper or a trend rider? Does your bot trade multiple currency pairs, or is it specifically tailored to one currency pair?

How many trades can you expect from your robot on a weekly basis? Is your robot acceptable to and compatible with your preferred forex broker? What is your robot's favorite type of market, does it like volatility or is it trained to trade markets that are consistently chopping up and down?

These are all questions that you should ask in order to manage your expectations when it comes to a forex robot. Don't just look at the headline "XYZ Robot Brings 2,000 Percent Returns!" and assume that you'll get 2,000 percent returns from your forex robot.

As with any piece of forex trading software, performance depends on circumstances. Your job, then, is to place your forex robot into circumstances where it can be successful on your behalf.

2. Be a Little Patient with Your Forex Robot

The transition from buying a forex robot to actually using a forex robot can feel like going from 60 miles per hour to 5 miles per hour stuck in traffic.

When you're buying the robot, you're all psyched up to KILL THE MARKETS and whatever else the salesperson's telling you. Whooohoooooo!!!

Then, when you go to download and implement the robot, you may have to deal with slow download times, or incompatibility with your broker so now you have to open a new account. And then, when you do get the tech stuff done, you might find yourself sitting there staring at the computer waiting for the dang robot to make a trade…but nothing is happening.

Suddenly you want to break your forex robot's face.
If you're going to give forex robots a chance, be prepared to be a little patient if you want to see real results. Be happy that the robot doesn't just start racking up trades immediately, but is picking and choosing its spots. Do you really want your robot to be in a rush?

Then you can't be, either.

3. Don't Be Afraid to Get Rid of Old Faithful Robots

There comes a time in the life of every forex robot program where the robot doesn't perform like it used to, no matter how many adjustments to the original algorithm are made by the robot's creators who are desperately trying to keep their cash cow in good working order.

Maybe it's because market conditions for the robot's favorite currency pair have changed; for example, volatility may have decreased. Maybe it's because forex brokers are sick of the robot taking their money, so they outlaw it. Maybe it's because other traders start using a new forex robot program that works directly against your forex robot and counteracts it.

Maybe your forex robot is just plain old.

Whatever the cause, you need to be on the lookout for signs that a forex robot that's been good to you may be ready to be put out to pasture.
That's one great thing about a forex robot: you can't hurt its feelings by milking it for everything it's worth and then throwing it in the trash and moving on to someone new.

Important Forex Information

The most important step in currency trading is finding the right broker; our forex experts can help. See our
reviews of forex brokers for more information.  

Forex Megadroid is a program you download that does your trading for you. It trades only the EUR/USD currency pair. Read the forex megadroid review.  

Forex Automoney and Forex Ambush are forex robot programs that have gained traction in the FX community. See the comparison: forex automoney vs. forex ambush  

Forex robots should never be used as an excuse for you to abdicate responsibility over your own trading strategy. Learn the 3 rules for working with forex robots.