With Forex trading, you can either do manual trading or automated software Forex trading. But should you use these automated software robots to trade the Forex?
To really make a sound decision, we have to know what is behind these automated software programs. And we have to figure out what their success rate is. And we can’t base that on what their sales page says, for obvious reasons.
Behind The Automated Software Robots
Looking deep into the automated software, we’ll find a mathematical core which is what the robot relies on to give it its cues. Depending on the algorithm, the robots will do extremely well in some market conditions and not so well in others. There is no way around it when you go into the realm of mathematical predictions translating into the real world of Forex currency trading. Most of these automated software robots do have algorithms that account for shifts in the market place. With that said, if the market is moving swiftly, the robot may not be able to predict reliable the next market shift based on the previous market behavior. Caution is required in using automated Forex robots under swiftly moving market conditions.
Success Rate Of Automated Software Forex Trading
We touched on this briefly just a paragraph ago. Going further, the success rate of automated Forex robots depends on a large degree to the market conditions. If they are stable and easily predicted, then the robots give very good results. These are good times to let the robot do the work for you as you can be assured that the automated trades will most of the time be good and profitable trades. The success rate is also dependent on the user, yes, on you. You need to understand the settings of the automated software. You need to know how to tweak the robot to fit into different market conditions. It can be said that in steady market conditions and with the right settings, the success rate of automated software Forex trading is high.
Should You Use These Forex Robots?
These automated Forex robots do have their place in the successful Forex trader’s toolkit. You shouldn’t rely 100% on these robots. Your brain is your best asset. If you feel the market is steady enough for your robot to handle, then by all means, turning your robot on will be a good choice. That is, if your robot has proven itself to you under a test account in the same market conditions. Under the right market conditions and with right settings, automated robots can save you time as well as give you higher profits!