7 tips on how not to lose money by trading Forex robots

7 tips on how not to lose money by trading Forex robots

Introduction.

How not to lose money by trading Forex with a robot or does the robot help you when trading Forex?

In an effort to earn more on Forex, many traders sooner or later pay attention to trading robots. A trading robot (trading algorithm, expert Advisor) is a software product written according to a specific trading strategy, which, depending on the degree of automation, facilitates the process of trading for the account holder, or trades completely independently. The results when trading with them are usually much higher. However, you should always remember that the use of a ready-made trading algorithm still does not provide one hundred percent protection against the loss of the Deposit. Yes, the probability of losing money at times less, but a certain percentage of the risk still need to lay and take psychologically. In order not to have to do a stupid thing, shifting the blame for the loss of their own money on the soulless code, it is worth considering a few important tips.

Tip 1. Figure What Out? what for?

There is a huge variety of trading robots that differ from each other in the degree of automation, the number of settings provided, the frequency of transactions, the trading strategies laid down in their algorithm, etc.the Decision to use this or that robot is entirely up to you. It all depends on what functions you plan to shift to his algorithmized shoulders. From the very beginning, it makes sense to clearly define your goals, opportunities and wishes: a comfortable amount to open an account, the desired amount of profit, the frequency of subsequent deposits, the desired frequency of profit withdrawal – all this allows you to choose the optimal robot for maximum profit. The main idea is that the robot will perfectly cope with any task.

Tip 2. Weigh all the pros and cons.

Every trader who trades with expert advisors will easily list the key advantages of robotic trading:
the robot analyzes the market and opens trades 24 hours a day, which is impossible for any professional; the reaction time to the signal of opening or closing a trade can not be compared; the robot you purchased can not get sick or break. He does not complain about the weather and bad mood, its effectiveness does not fall; risk management rules are written “in the brain” adviser, and, therefore, you are 100% protected from loss of Deposit. In the past there are transactions made on emotions. all earned income is the owner of the account. The robot brings all the money earned to the investor and will never require its share. There is only one drawback-the periodic need to adjust the settings and add the algorithm to the changing market. And this important point for many once crossed out the obvious advantages.

Tip 3. Understand Where? and who? buy.

The most difficult is not the choice of a suitable robot from the offered range, but the choice of a company offering its services in this segment. Conventionally, these companies can be divided into manufacturers and sellers. And everyone has their advantages. Perhaps the first obvious option is to buy a trading robot from the seller. In this case, you will certainly be helped to choose the most suitable product, will provide expert assistance at the stage of purchase. But, we must understand that the transaction will be completed, and each updated version of the robot will cost some money. Having bought the robot from the manufacturer, you will need to periodically update it to the latest version in order to extract maximum profit from the ever-changing currency market. The catch is that not every manufacturer sets the task of building communication with potential buyers. Most shift these responsibilities just to the seller. Thus, the ideal selling party in the field of technically complex goods and services is a company that combines the functions of both the manufacturer and the seller. A company that knows everything not only about its product, but also about its customers.

Tip 4. Select the appropriate broker.

If you already have a trading account opened with a Broker, it makes sense to spend a few minutes and analyze the pros and cons of working with this particular broker. Perhaps the choice in his favor was made spontaneously without understanding all the subtleties of trading on Forex. If you only plan to open an account-you need to compare the trading conditions of several brokers from the TOP 5. It is important to understand that to make a choice in favor of a company only on the basis that it is common in the region, not necessarily. As a rule, clients trade remotely with large top companies (such as Alpari, ForexClub, PROFIT Group, InstaForex, RoboForex). Their reputation is confirmed by long-term successful cooperation with thousands of customers. Pay attention to the company’s website. It should provide a maximum of useful information for both beginners and experienced traders: examples of trading strategies, software to start trading, various training materials. Also in the public domain should be samples of documents regulating the cooperation of clients with the Broker. All this shows that this company cares about the success of its customers and is ready to share with them everything necessary for mutually beneficial cooperation.

Tip 5. Determine the account type.

After choosing a Broker, you need to determine the type of account. Most trading robots are suitable for all types of accounts supported by the MetaTrader 4 trading platform. It can be a Standart, Mini, Micro or ECN account. ECN account is most suitable for trading with robots. As a rule, ECN accounts have the best conditions for order execution. By the way, the ability to open a trading account of this type is also an indicator of the authority and reliability of the broker.

Tip 6. Figure out what it is? you will receive after purchase.

Trading robots, like any other software, can be sold to you in different degrees of configuration. Buying an expert Advisor on a questionable resource, do not be surprised if in fact you get just the code, which then it is unclear what to do. Therefore, before you make a purchase, specify whether the installation and configuration instructions are attached to the trading Advisor. Contact the Manager, ask all your questions. Remember, your money is at stake – and you need to do everything right from the beginning. Quite well, if the kit will be video instructions. Trading robot, like any software product, the more valuable the more opportunities for individual customization. The principle of “the simpler the better” certainly works, but only for those who do not want to delve into the process. Professionals also give the perfect product with fine-tuning. In this case, the most detailed video instructions will be most welcome.

Tip 7. Analyze the results.

Having established the process of making a profit, you should never stop there. Consider the percentage of losing trades. Analyze the results. Optimize your trading robot settings. If you have enough of your own knowledge-great. If you are a beginner in this matter – be sure to contact the experts. If at the stage of purchase you have made the right choice of the company, to solve any of this problem you can always contact your Manager. Most consulting services in large companies will be provided free of charge. Non-standard and serious tasks, of course, will cost money. Optimization in any case will lead you to greater profits and cover all costs.

Summary.

Sum up. In order to properly and successfully start trading with a trading robot, you need to:
Clearly identify your goals, wishes and comfortable opportunities to start. Weigh all the pros and cons. Select the company from which you will acquire an expert Advisor. Choose a reliable Broker. Determine the type of account. Pay special attention to the installation and configuration of the trading robot. In the process of trading, it is necessary to analyze the results and on its basis to achieve the best results.

Well, the above information is enough to determine whether trading robots are your choice or not. We have told you about all the obvious advantages. Cons, as you can see, with the right approach is almost there. The choice is yours. It’s important to remember that earning someone who is willing to take decisive action.