Forex Trading Robots Can Assist In Day Trading For Profits
Foreign exchange day trading is no great challenge. Millions of traders are doing a similar thing during certain hours of the day. This is where forex trading robots have their use, they look at the trends, and are set to seek and scalp profits. While this is a relatively risk free way of building up reasonably large incomes over time, the challenge lies in finding a robot that will perform.
All traders have different skills, aims and trading systems in place, as soon as you understand this you will be able to see how predictable they are. It is a little bit of a challenge to undertake this yourself however, because of the randomness of volatility in short time frames. Support and resistance levels are therefore not valid and using a robot could mean losses to the trader.
There are a large variety of day trading robots available for purchase, and day trading can be good in terms of small regular profits. However, these robots come with simulated back tested track records and the only way to know how they really perform is by testing them in real time with real information. Doing this is called a "forward test" rather than a "back test". If you see what I mean!
Testing a forex robot in this way is called a "forward test" as apposed to a "back test". It has to be able to adapt to changing market circumstances while performing on a broker account. The test should reveal that the robot shows consistent trades, meaning more winning trades. And most vital of all is money management, the robot has to be able to protect the account equity without allowing any large draw-downs.
Ideally forex trading robots should be tested while the market conditions are exactly the same, or at least similar. The capital deposit in the margin account must be the same and more than one product should be compared during these conditions. Some traders believe you should stay away from day trading, while others believe it. - 23221
All traders have different skills, aims and trading systems in place, as soon as you understand this you will be able to see how predictable they are. It is a little bit of a challenge to undertake this yourself however, because of the randomness of volatility in short time frames. Support and resistance levels are therefore not valid and using a robot could mean losses to the trader.
There are a large variety of day trading robots available for purchase, and day trading can be good in terms of small regular profits. However, these robots come with simulated back tested track records and the only way to know how they really perform is by testing them in real time with real information. Doing this is called a "forward test" rather than a "back test". If you see what I mean!
Testing a forex robot in this way is called a "forward test" as apposed to a "back test". It has to be able to adapt to changing market circumstances while performing on a broker account. The test should reveal that the robot shows consistent trades, meaning more winning trades. And most vital of all is money management, the robot has to be able to protect the account equity without allowing any large draw-downs.
Ideally forex trading robots should be tested while the market conditions are exactly the same, or at least similar. The capital deposit in the margin account must be the same and more than one product should be compared during these conditions. Some traders believe you should stay away from day trading, while others believe it. - 23221
About the Author:
Learn more about forex trading robots. Stop by John Eather's site where you can find out all about forex trading systems and what it can do for you.
posted by X - Men @ 3:35 AM
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