Choosing a Forex Trading Robot part II

jtelo
By jtelo May 13, 2009 15:17

Choosing a Forex Trading Robot part II

Deciding for an automated Forex trading system, best known as FX Robots, is all about two important things:

  1. Costumer trading needs.
  2. Robot’s compatibility with desired Broker.

What do I mean by costumer trading needs? when I talk about this I refer to the robot’s capabilities or specifications: Is this robot able to trade with this currency pair?, Am I able to configure “x” parameter to what I need?

When someone decides to go into this market he already has some ideas around which he would like to make his movements. Finding a robot that’s around this ideas also is the best thing to do. For example, a trader wants to start trading with an specific currency pair, EUR/USD, so he will be searching for a robot like Forex Megadroid to do so, why?, because like everything on this planet, when we want to do something in specific, like fixing a car, we look for someone or something that’s specialized on that thing, we don’t call an Engineer to fix a car, we call a Mechanic. Engineers can know about cars, but Mechanics will surely know what’s going on with the car. And that’s exactly what happens with robots.

It’s clear that people can use whichever robot they want to do a trade, but when they encounter with a situation in which they want to trade with an specific parameter, like timeframe or a currency pair (continuing with the example of EUR/USD), they shouldn’t be looking for an all-around robot like FAPTurbo, they should go for a more specific one, in this case, Forex Megadroid. And this apply all the way around if diversifying is what the trader is looking for.

The other key piece of the puzzle is the “Robot’s compatibility with desired Broker”, what is this? people that is into this market know that choosing a broker is one of the most important steps of Forex Trading. What would happen if the broker you chose isn’t compatible with the robot you’re using? It would be terrible. You wouldn’t be able to start an account with the amount of money you wanted, you wouldn’t have access to the leverage you needed and, even more dramatic, you couldn’t trade with the pip spread you expected.

The are to possible options in this situation, the first one is kinda obvious: find another robot. The second one is a little more interesting: knowing that you won’t be able to find a robot that works with the broker of your choice, you can always find a nice robot and put it to work in any broker, and instead of using the robot as your primary trader, you could use the robot as a role model and repeat the actions it took on the broker you like, only if you’re agree with them. In this way you’ll win, you’ll have the assistance of an FX Robot and all the advantages of your chosen broker.

So my recommendation is to have these tips in mind when the time has come to choose a Forex Trading Robot and know that even if you’re planning to use bots as primary income you can never enter to this market blindfolded, knowing what to do, even if it’s not you who’s doing it, is the key to your success.

jtelo
jtelo
By jtelo May 13, 2009 15:17
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