Through the years, Forex robots have flooded the market with mixed results. Of course, there is always the very few that work, but unfortunately the majority will eventually fail. In this article, we will examine the possibilities with Trading robots, also known as expert advisors and find out if it is possible to have a Forex trading system that really works.
The Possibilities of the Trading Systems of Their Limitations
The coding of expert advisors is always moving forward, and now there is even a software that can read the news and alerts adapt that information in a trade. This new wave of programming is the cutting edge of the use of fundamental analysis in the trade of algorithms; there are problems with this that a fundamental trader might point to, but that is a conversation for another article. The limitations of a trading system to descend to the programs. There are hundreds of indicators on the market which give direction to the markets and they will be correct a percentage of the time. The problem is to make sure that they are correct enough of the time to make a total of benefits at the end of the week, month, or year.
It is common place for a Forex robot to work for a period of time, then go through the bad patches that have the potential to eat up all your profits and even blow your account. Although these Expert Advisors are sold in good intention, there is no way of knowing how to forecast with precision the market and a trade system based on rules that might not fit the market next year as it did the previous year.
A Trading System That Can Adapt
In conclusion a Forex trading system that really works is going to be one that can adapt to the trading environment at any time through the use of more than one set of rules. The use of a system that adapt a number of rules can be adapted to two multiple scenarios. For Example, a Forex robot that uses a system of scalping in a trending market you could lose consistently when the market consolidates. To have a system able to detect the change in the market and switch to a consolidation technique could result in exceptional results.
There are hundreds of systems on the market and the best advice we can give to the two the purchase of one is a look at the latest results and pay special attention to the amount of reduction. A Forex trading system that really works will have a reduction of less than 20% anything more than this, then there is a great danger that you will blow your account eventually.