Unless you've been living under a rock or in a cave, if you're interested in forex trading, you've heard of forex robots. And here is some important information to remember about forex robots: Not all forex robots are created equal. You see, all forex robots have kind of a secret ingredient that make go and that is their settings.
A lot of novice traders get attracted to forex trading not only because of the large amounts of money that can be made in relatively short amounts of time, but because the market is readily accessible to traders all over the world at any time of day as long as they have a computer and an Internet connection. And traders probably think this is the way that market has been forever. Ah, that is not the case. Financial markets are constantly evolving and forex is no exception.
Forex robot settings are one of those mundane topics that anxious and over-zealous traders tend to forget about their way to trading glory, but if you're relying on a forex robot to deliver you to the top of the forex mountain, you better know your robot's settings.
Where Do You Start?
Another issue to consider is the fact that some forex robots only trade one major currency pair. Many one-pair forex robots focus on the EUR/USD pair. Generally, we'd be OK with this because the EUR/USD is the most traded pair in the forex market, but even this pair goes through periods of lulls where the chances of making big pips on a single traded are limited. Again, getting your robot to focus on another pair or two may just be a matter of reading the instruction manual and altering its settings. A good forex robot should be able to easily make the transition from one pair to multiple pairs and if it can't, it might be time for you to consider a different forex robot.
Now the other side of this equation is that as a trader, you prefer the narrow focus of a robot that zeros in a single currency pair. There's nothing wrong with that and if for some reason you have a forex robot that trades multiple pairs, a quick adjustment to its settings can probably get it focused on just one pair. This is just one of the many reasons why it is imperative that you know your forex robot's settings. See, that user manual can be stimulating reading after all!
Where To Observe Your Forex Robot's Settings
Now what do you think we mean here? Live accounts of course! Meaning you should always test your forex robot out with real money. You'll never get an accurate sense for what the strengths and weaknesses of your forex robot's settings are by relying on demo account trades or back-tested results. These faux trading scenarios are littered with problems, not the least of which is the false sense of security they give users of forex robots. The only way to get the best sense of what your forex robot is about is to eschew the "dry run'" and put it to work with live capital right off the bat.
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