Forex robots and automated trading… let’s discuss!
For the uninitiated, a forex robot (also known as an Expert Advisor, or EA) isn’t as fancy as it sounds.
For the purpose of this article, I’ll assume you’re in the mindset of purchasing, or trading with an EA or robot provided by a 3rd party. Probably with a promise of untold riches, all you need to do is turn it on and wait to collect the cash.
Am I right?
This is where I burst your bubble…
The vendor that sold this piece of software lied to you.
You aren’t going to own a Ferrari with accompanying bikini-clad blonde from this magical software. You would have been better off buying a virtual reality headset.
The truth is, you won’t make money long-term trading with an EA or robot.
Think about it for a moment.
Do you really think there is a piece of software out there which you can buy for a few hundred dollars that’ll outsmart the market for years to come?
The real question is: how do these robots go about making decisions in your stead? Watch the video below to learn more about two main market conditions, trend and range, that are crucial to your forex success.
These robots/EA’s are also what’s known as black box system. We don’t know how they’re built or why they work. All we can do is attach it to our charts and cross our fingers.
The only people that make money out of forex robots are the vendors who sell them.
Having said that, there is a place for automation in your trading. But in our experience, it only works with manual oversight.
You MUST understand the reason the market is moving and couple this knowledge with a technical overview.
In the video below, we will show you some tools to assist you with your automated trading.
We will look at the two main indicators that everyone should be using when determining the trading environment they’re in. These are called Moving Average & Average True Range.
When you know how these work and you’re in control, you can decide when to turn off your automated robot/EA or to let it run. If you know what trading environment you’re in, that will put the edge in your favour. And that’s what it’s all about…
Remember, there are no shortcuts to successful trading.
You need to put in the effort if you expect to succeed. If you have the passion and dedication will eventually succeed and set yourself up for financial independence just like I have.
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