Over the years, Forex trading robots have flooded the market with mixed results. Of course, there are some of the best that work, but unfortunately, the majority will eventually fail. In this article we will look at the possibility of trading robots, also known as expert advisors and find out whether it is possible to have a Forex trading system that really works.
The possibility of trading systems and their limitations
Coding expert consultants are always moving and there's even software that can read notices about news and adapt this information to trade. This new wave of software – an advanced part of the use of fundamental analysis in trading algorithms; with this there is a problem, for which the main trader can specify, but it's a conversation for another article. Limitations of the trading system is reduced to the programmer. In the market there are hundreds of indicators that the market trend, and they will adjust the percentage of time. The problem is that they are quite right, to ensure the overall profit at the end of the week, month or year.
This robot for Forex robots, who works for a certain time, and then going through a bad patch, which has the potential to a & # 39; have all your income and even blow your account. While these experts are sold with a good intention, there is no way to know how to accurately predict the market and trading system based on rules that can not meet the market next year, as last year.
A trading system that can adapt
In conclusion, really works forex trading system that can adapt to the trading environment at any time, using more than one set of rules. Using a system that adapts a few rules can adapt to multiple scenarios. For example, Forex robot that uses a scalping system in trending market can consistently lose if the market consolidates. Having a system that could detect changes in the market and the move to consolidate the technique will lead to exceptional results.
In the market there are hundreds of systems, and the best advice we can give at purchase – is to look at past results, and to pay special attention to the amount of drawdown. forex trading system that really works, will have a drawdown of less than 20% of anything more than that, then there is great danger, if you cut back on your account at the end.