The retail traders are not aware of the fact trading robots can be very useful, if used properly. Most of the time, the naïve traders get biased with the EAs and start depending on the Forex bots. You have to understand the simple fact, Forex bots are not human beings. They are a bunch of codes written by the advanced programmers to execute the trades based on specific market conditions. If the logic is good, chances are high you will be able to make a decent profit. But do you think you can expect to make a consistent profit without analyzing the market sentiments? The obvious answer is NO.
The market sentiment changes regularly. Though the advanced bots can assess the sentiment of the market based on statistical data like CPI index, GDP, unemployment rate, etc. still you need to use some technique to get the best from an EA or Forex bots. Let’s learn 4 amazing things which you must consider while using Forex robots.
Use premium technology
Some of the retail traders often install the EA or Forex bots in the low-end trading platform. They don’t realize the fact, the Robots need a premium environment to work. You might be able to reduce the trading cost to a great extent by using the low-end broker but this will kill the profit factors at trading. For instance, the robot will not be able to analyze the perfect signals due to faulty price feed.
The low-end brokers also fail to offer a fast-paced trading environment. And the latency issue is going to kill your short term trading strategy. Unless the broker has a proven track record in offering the perfect trading environment, you should never trade the market with EAs. If necessary ask the professionals to learn more about a specific brokerage firm.
Backtest the trading bots
You need to backtest the trading bots to earn consistent profit from this market. Some of the advertisers might say, they have the best bots in the world. Just by installing the bots on the trading platform, you can start changing your life. Though some of the bots can find the perfect signals with a high level of accuracy this thing is not as simple as it seems. Before you buy any bots, ask the providers to give them the past trading results. Analyze the past trading results so that you can understand how things work. You don’t have to learn super complicated things to understand the performance of your bots. If necessary, test it with the demo accounts. Demo accounts are the perfect tools that can help you to analyze the major flaws associated with the trading bots.
Use semi-automatic mode
You need to use the robot in semi-automatic mode to get the best results. If you start using the bots with automatic configuration, chances are high you will lose most of the trades during a high level of volatility. Look at the pro traders. They always analyze the market so that they can assess the sentiment.
Without having a clear idea about the market sentiment it’s really hard to make a profit from this market. Things might be hard at the initial stage but once you learn the manual trading strategy, you can easily make big profits. After using the manual trading method for a long period, you will realize some of the steps in your trading method can easily incorporate into the Forex bots. This is where things become interesting. By automating a certain portion of your trading process, you can eliminate the human error. But to do this, you must have extensive skills by trading the market with real-time data.
Always purchase the best product
When it comes to the use of Forex bots, you need to purchase it from the best service providers. Many scam sites are trying to steal the money of the traders by selling garbage. They might even forge the trading portfolio to make you convinced that they have the best bots. To avoid such problems, you need to verify the authenticity of the products. Stop making things overly complicated by using unnecessary variables.
Focus on the long term goals and try to find the best bots. The best bots providers also bring regular updates to their products. They know the market always changes its nature. Unless they keep their robot updated with the market dynamics, it’s not going to work. But don’t think all the expensive robots or EAs are best.
You need to focus on the performance report sheet while ordering trading bots. If necessary, seek guidance from the skilled traders to learn more about the EAs or bots. Last but not least, never purchase any product from the unreliable source.