An FX trading robot uses a computer program to monitor currencies and does calculations using a pre-programmed algorithm to work out the best time to buy and sell.
It takes the guesswork out of trading by instilling statistical expectancy in a system when buying and selling. It helps a trader to identify currencies that meet specific criteria, or when certain currencies perform in a particular way.
There is lots of research available online about forex trading software. Like any other tool, it needs proper research. Trustworthy reviews from authoritative sites and feedback from forex community forums are essential before buying software. To successfully use trading software, you need to fully understand how it works and how best to apply it as part of a strategy.
Risk managing automated software
Most selling points for forex robots revolve around setting them and watching the profits accumulate. In some cases, this may work, but mostly you have to carefully monitor the program to ensure it is adjusting to trends in the market. Expert Advisors offer more control for a trader than the complete automation including trade placement available with forex robots
While it can be very profitable, automated trading software does require a certain amount of intervention to be run effectively.
Backtesting is vital
Backtesting is essential before trading live using automation as part of your trading strategy. Testing for weeks or months is not unusual to accurately test a system offline using both historical data and demo trading for system validation. Used properly, and with the patience to research the best software for your specific forex strategy thoroughly, it can become a powerful tool.
Forex trading software can be a crucial addition to a broader trading system. If you read about the psychology of trading, automated software helps take the emotion out of trading. For success, the software must backtest appropriately, and only then should it be considered for live trading.