A Forex trading robot does not have a physical entity and it does not sit in front of a computer screen for long hours to initiate trades. It is just an automated software application programme which works on the basis of a set of preset rules and parameters and these robots are designed to initiate and liquidate trades in the Forex market using various methods of electronic trading automation.
Do Forex trading robots really work
These robots also don the hat of expert advisers or EA’s and operate within the popular online trading platforms like MetaTrader to execute transactions. They are called as expert advisors because they advise the software and the trader whenever traders are using the software to initiate or liquidate their positions. These robots are designed by Forex trading experts with the main aim to make money in the Forex market automatically without any human intervention.
Forex Robots have so far proved to be effective in finding the entry and exit points for trades, calculating ideal position sizes and executing transactions according to a preset set of rules. The software used in these automated robots work on the basis of a technical analysis of market currency exchange rates. Buy and sell signals are generated by these robots depending on market conditions and other parameters like past and present levels of exchange rates and some other technical parameters which are chosen to be considered by the trader and these are often adjustable.
Some of these robots are designed to work on their own while other robots operate in conjunction with other trading software. To determine whether a trading robot works effectively or not , one should perform a back testing with certain random parameters. Some of the legitimate software providers provide access to try the robots before purchasing them. Another advantage of using these trading robots is that, they can monitor the Forex market and perform transactions 24 hours in a day as the markets are open round the clock.
The federal Government terms most of these Forex robots to be a scam. They are just advertised with false claims by some people who want to make money by selling them. To choose a genuine Forex trading robot, one should go through the reviews online and also consult people using them to find out about them. One should understand that these robots are just machines and they can never replace humans who can follow up with the diverse market trends and world news to make appropriate decisions.