robot trading hours

what is forex robot Visitors: 463

The popularization of automatic trading in the Forex market is quite plausible as you can avoid a number of mistakes made because of emotions. This is not the only advantage of this type of trading. However, it also has its own shortcomings, the impact of which, however, can be minimized with the correct approach.

The main instrument of automatic trading is a so-called advisor or robot. What is Forex robot? This term implies a special class of programs installed on trading platforms; their task is to conduct transactions on the Forex market. They operate according to previously developed algorithms and, ideally, can completely replace manual control. The program approach allows you to increase the efficiency of the operations and the human factor is minimized - robots do not get tired, they do not make silly mistakes, work fast and clearly. However, they cannot be called a full-fledged universal tool.

Robots can be used by both professionals and beginning speculators. Sizes and features depend on the trading style of a particular trader. However, experienced traders do not advise to rely excessively on the help of robots since the latter are rather limited in their functionality. For example, they do not know how to work with fundamental data and non-standard situations so trade automation should be partial but not complete. There is a whole industry working on creating robots since selling software products brings a very good profit. However, finding a truly worthwhile product is not easy. This is explained by both the "diligence" of developers and the specificity of currencies.

The segment of useless fake robots in the market is quite large. Scammers rely on advertising pursuing a simple goal - to sell the goods in any possible way; the quality is their last concern. In addition, even honestly made advisors simply cannot generate a steady income because even the most sophisticated algorithms are not able to provide for all the nuances of currency trading.

The search for a suitable Forex robot should begin with defining its type. Each strategy is focused on specific trading methods - this can be trend trading, scalping, multicurrency systems and even methods based on the principles of Martingale. Therefore, the algorithm must fully comply with the strategy used. Description of the program should indicate which strategy its algorithm is designed for. If a seller does not possess the necessary information, then it is better to reject their services. Most likely, this is a fraud.

Key criteria for Forex robots

The results obtained from demo accounts do not have the due reliability. The program needs to be tested in a real market environment. The minimum period of testing is starting from six months (about 150 transactions). Ask the seller to provide the results. The process of testing a robot is very important but if it is a commercial product and the money has already been paid for it, you will not be able to return the negative test results. Robot's verification should be carried out by their developers or sellers if they have a serious approach. In this case, you should not have doubts about their authenticity. The ideal option is to get the password and login from the account on which the specific robot was applied for a while. Then you can study the history of the deposit account, get acquainted with the working parameters of the robot and other indicators that determine the effectiveness of the program.

One of the main parameters of efficiency is its profitability. It should be noted that profitability and risk are interrelated values on Forex; therefore it is simply impossible to receive a 100% return. Good robots can give up to 10% of profit per week. If this indicator is higher, it means that the algorithm of the program is focused on aggressive trade. It is unlikely that you will find this approach beneficial; you might lose the entire deposit instead of earning something.

When choosing a program for automatic trading based on the results of its testing, be sure to study the ratio between equity and balance. The graph containing these data reflects the nature of the changes that occur with the deposit account. So, if the balance line is located under the equity line, then this can be considered an indicator of high accuracy of market entering. The algorithm, based on correct money management, will not allow these lines to move away from each other too far. If the graph shows a large discrepancy between equity and balance, it means that the robot does not use stop orders or uses it, incorrectly.

Knowing the trading sessions timetable means that you can distribute your efforts and use the opportunities and time productively. As you know, Forex works 24 hours so robot trading hours are basically limitless. Sessions go one after another or overlap one another, except for the weekends. Furthermore, Forex market stops working on holidays, for instance, on Christmas, New Year and Easter. Taking advantage of trading hours is also convenient because currencies do not act similarly during different sessions. So, yen is normally more dynamic during the Asian session and euro shows more movement during the European session. The most aggressive out of all is the American session - dollar is more likely experience a great drop or the opposite at that time of the day.

You can determine the quality of the service by seller's skills. If they do not give any clear answers, do not want to leave their contacts, overpraise the program using overvalued measures, then you either have a fraudster or an amateur. You need a real professional who can describe the robot in great detail. A decent plus of a trading robot is its participation in contests or competitions related to the Forex market. The creators of good ones always try to tell the trading community about their developments. They advertise them on specialized forums, promote them in ratings, etc. If you buy programs that are more of a mystery, you have very slim chance that this will be a profitable purchase.

Here are a few more rules that indicate what you do not need to do:

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