Forex Robots Blog by Liz

Move Your Robot To The U.K.?

Recently, anti-hedging legislation was passed in the U.S. and the unfortunate consequence of this government interference in the forex market is that forex robots operating on US brokerage accounts have had their hedging capabilities cut out from underneath them. The National Futures Association (NFA) is behind the move to eliminate the hedging capabilities of US brokers and the move may put US brokerage firms and traders (and their forex robots) at an acute disadvantage. While holding a long and a short position in the same pair appears to be an offsetting move, many traders and forex robots will hold both positions until a definitive trend has emerged.

So what’s the solution for restoring your forex robot’s hedging capabilities if you use a US forex broker? Fortunately, the answer is pretty clear: Switch to a UK-based brokerage. For example, traders using FXCM can make a seamless transition to the FXCM UK and set their forex robots loose on hedging tactics once again.

Know The Pitfalls Of Trading With An Offshore broker

Unfortunately, for US investors, there are some pitfalls of moving your brokerage account offshore to restore your forex robot’s hedging capabilities. Traders moving their accounts offshore can become subject to state level regulation and if the account size is large enough, Commodities Futures Trading Commission regulation. One option for avoiding such pitfalls and keeping an account within the U.S. is to trade with an unregulated forex broker. Knowing that trades might opt for this course of action, it is surprising that the NFA would have moved to kill traders’ ability to hedge and impact the usefulness of forex robots. Of course, the NFA attempts to defend itself by saying that traders using sound trading principles won’t feel the effects of the new anti-hedging rule. That’s fine, but there is really no justification for limiting the use of forex robots, a product that many traders find useful in their attempt to generate pips.

The U.K. Is Waiting

If you’re feeling the pinch of the anti-hedging rule, ask your broker if it has a UK branch that you can switch over to. At this point, this is the best and easiest way to get your forex robot working again on hedging strategies. Some forex robots have excellent hedging skills and it pays to maximize these benefits to the fullest.

Most forex robots simply don’t make anything like the money that their sellers claim. In fact there are very many that are guaranteed to lose you money if you use them for long enough. But this may not be the case if you take the time to do a little research.

Get Best Forex Trading Robots to help you to make profit!

First and foremost you can ignore all those promises of win to loss rations above 90%. Sure it may be possible to get this kind of result over a short period of time when the market moves in favour of the strategy built into the robots coding. ?But the real test of good forex robots is how it performs over months and years. A forex robot capable of producing anything above a 70:30 win loss ratio is actually a good robot. A robot that can produce more winners those losers over time can actually make you a good profit through the use of careful money or risk management.

How a forex robot manages the money in the trading account it is equally, if not more important that the trading signals it produces. Without good money management, trading is nothing more that gambling.?It is very easy to lose money in Forex trading and much lot harder to make it back.

Forex traders are always looking for an edge and that is the only reason why traders develop systems. At face value a trading system that is 70% profitable does appear to be a very good edge to have. However what you need to factor in is the frequency, timing and sequencing of those 70 winning trades? ?You could technically lose the first 30 trades in a row and win the remaining 70. The problem is that 30 losses ?in a row is more than ?likely to wipe out your trading account.

This is the reason money management is so critical. No matter what forex robot you use, you will eventually have a losing streak. The way to avoid getting into huge and potentially account destruction situation is to only risk a small percentage of your total trading account. This will ensure you can survive a run of losses. So a forex robot with a conservative risk setting and which uses a small fraction of the trading account is likely to more successful. Remember that if you practice strict money management rules, you will become the casino and in the long run, “you will always win.”

These are great gains and will soon compound up over time but beware losses will typically be between 30 – 50% from peak equity at some point and drawdown periods can last for a few weeks.

The best thing to do is to look for a forex robot with a money management track record with proof of account preservation. It should have a ?conservative risk management option as part of its coding. If it does provide user adjustable inputs, make sure you opt for the safest setting. This way you stand a much better chance of winning in the long run.

Get Best Forex Trading Robots to help you to make profit!

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When I look around the various forex forums, you almost always invariably see a post from a newbie asking, “What is the best EA?” or “Which is the most profitable forex robot?”, in the vain hope that relying on a total strangers judgment will save them months of trial and error and reward them with instant riches. If only it were that simple we would all be millionaires without having to barely lift a finger. Since we are firmly entrenched in reality we know it doesn?t happen that way unless you win the lottery.

So what do you need to look for in a forex robot?

Here are some of the characteristics to look for or avoid when you are looking to narrow down the short list of forex robots to buy. This is based on my own experience of testing and developing Metatrader EAs over the last five years.

1) Avoid forex eas that only offer back tests as verification of their profitability. Back tests are simulations only against tick data (price data from a broker or third party source), hence they are not an accurate or true reflection of trading in actual market conditions. Delays in trade execution and slippage can severely effect the profitability of the robot. Another great danger of back testing is that it is easy to “curve fit” or over optimize the settings on the Robot to suit the available data. So what you have is a robot that has been optimized to suit historical data, rather than one that is flexible enough to adapt to current market conditions. The forex market, like all markets changes “personality” over time and hence historical data is in now way a true indication of what will transpire in future.

To sum up the back testing argument, with the benefit of hindsight it is quite simple to optimize an EA to produce a profit, unfortunately in live trading we cannot benefit from this luxury. Hence back testing is not a good indicator of the future profitability of a forex robot.

2) Look for live trading statements of actual real money accounts. ie. Not demo accounts. not only do demo account data feeds sometimes vary in price and speed they also do not give an accurate representation of the speed and accuracy of trade execution, no matter what your broker tells you, even if the price data is the same, the trade execution will vary enough to greatly effect your profitability. The longer the period of live trading statements the better, but be aware of any gaps in the statements which might indicate “cherry picking” or selective use of trading statements for a particularly successful week or month or even 3 months.

2) Be aware of the trading conditions of your chosen broker, that is, be aware of any restrictions on minimum take profits and stoplosses, as well as spreads and leverage which may effect the operation of your EA. Also recent NFA rules regarding hedging and FIFO may also effect the operation of your robot, so be aware of this if you are using an NFA registered broker.

3) Avoid forex eas or robots that rely on a take profit that it too small, or the average win is too small. ie. the difference in the average win and the average loss. If the difference between a win or a loss is too small, relatively small changes in slippage and trade execution can severely effect profitablity.

4) Be aware of the type of money management (if any) is used on the forex robot. Many robots use some form of Martingale Theory, which effectively stacks lots or doubles lot sizes when a losing trade occurs. If the robot uses this form of money management there is a very real chance of over leveraging in the event of prolonged periods of drawdown.

5) Avoid forex robots which have a win to loss ration of greater than 80%, some might suggest 70%, but we could debate that ad nauseum. The fact is that to achieve these very high win loss ratios you must also carry floating losses or losing trades for extended periods before they may or may not realize a profit. This usually indicates that trades either do not have a stop loss present or carry an extremely wide stop loss, either of which is potentially dangerous to your trading account. Time after time I have seen these types of trading systems come unstuck after the worst case scenario happens.

By observing these 5 rules you will be able to better identify forex robots that are more likely to produce a profit over a longer period of time, but like everything in life there are no guarantees. As mentioned earlier the forex market does change personality and just because a robot has performed well for 2 years it doesn?t mean that it will continue to perform.

What are “forex robots”?

In simple terms, forex robots are automated trading programs that will watch and trade forex currency markets for you automatically.

More precisely, they are sophisticated artificial intelligence programs based on a proprietary language specific to the Metatrader 4 trading platform that will automatically examine the market(s) that it is programmed to watch. It will execute trades, both opening them and closing them, based on predetermined parameters. This is all done without the need for human intervention.

So why use them?

One of the biggest reasons why it is that most traders lose money trying to trade forex and for that matter any kind of speculative trading is that we are creatures of emotion. Thus we trade with our emotions and that is what gets us in trouble. Greed and fear being the two most prevalent and destructive of all the emotions.

The use of these expert advisors or ea’s for short has the advantage of being able to completely take the emotion out of trading. Well, almost anyway. You can at anytime of course disable the ea thus again bringing emotion back into the equation. This is not recommended.

In the beginning days of the introduction of these trading robots, they were not nearly as sophisticated as they are at present. The early ones were nothing more than common indicators and their settings translated into programs that executed trades based on whatever basket of indicators the author preferred to use.

They were still effective because of they still took the aspect of emotions out of the equation. But they suffered from the same malady that all trading systems based purely on indicators suffered…that they lagged. Because of this, they were not as successful as they could be.

These days, advancements in technology and understanding of what it takes for automatic trading to be successful has led to a new generation of trading robots that can adapt to changing markets and conditions. Thus being able to maximize profits and cut short losses to a degree never before seen!

Why is it that this advancement is important?

Markets are ever-changing. The one part of trading that humans will for the foreseen future will always have over any kind of robot is the ability to adapt our trading strategy on the fly depending on what we perceive as changes in the markets. Robots can’t do this….until recently!

Much more sophisticated technology has imbued these robots with the ability to use different trading strategies depending on the market condition enabling them to trade on the fly. This combined with the emotionless trading has brought automatic trading to new heights of profitability! Claimed returns of over 80% are being realized!

Is this the “holy grail” of trading that everyone is always looking for? Really, it actually could be! Now this of course is depending on the fact that the current rules of trading will not be changed. Already, many brokers are implementing rules changes to counter these trading robots.

Why?

Because many brokers see these robots as counter-productive to their goal of making money through their clients actually making trades and thus earning them commissions. With trading robots, it’s possible that there will be a dramatic decrease in the amount of trades that traders will place because they won’t be opening and closing trades based on emotion anymore.

And despite denials, some brokers do in fact take opposite positions to the trades that your typical at-home trader makes based on the fact that they lose more than 95% of the time! So by using a trading robot that can possibly give returns of more than 80%, the tables are turned and the brokers who do this will lose money.

So it’s no wonder that many brokers are fearful of trading robots.

Get them while you can because it’s almost for sure that the rules of trading will change.

This FAP turbo review 2009 will look into the FAP turbo expert advisor. This article is going to establish if the said expert aide robot is making money or not. This EA is a Metatrader four foreign-exchange trader machine. It is automated incidentally. You set it onto 15-minute charts and just leave it to do its stuff. The testing started on Jan 5, 2009 with a starting capital of ?500. Quite lately, the author of FAP turbo review 2009 experienced a huge loss. It all occurred on the 19th of January of this year, just one or two days after the start of live trading. The author was using the EURGBP currency pair. See more about best forex trading robots compared below.

The loss was quite enormous since 2 weeks’ worth of profit all went into smoke. You might be considering why FAP turbo review 2009 still gave this expert counsel a positive review after a particularly bad loss. See more about best forex trading robots compared below. As a result, the EA became variable as well . See more about best forex trading robots compared below. It’s not perfect. In fact, nothing is ideal. If there are signs of this type of situation, you only need to switch off the system for that day and skip trading. These kinds of eventuality only occur infrequently. The final analysis is that this EA will still make you a lot of cash. After the draw down, the writer was able to recuperate his losses and start with the same amount just before the draw down. If you’re looking for a really good forex robot, then this robot is the one for you. Even though it went thru some bad trading day, it still was able to hold its position. For FAP turbo review 2009, this automated expert counsel is sort of good.

FAP Turbo is meant to mechanically analyze trading information. It gives a real time trading results from 1 or 2 accounts and the trader can get updates every fifteen mins.See more about best forex trading robots compared below. See more about best forex trading robots compared below. See more about best forex trading robots compared below.Setting this software up isn’t an issue. See more about best forex trading robots compared below.First, this is very easy to download and it wouldn’t take most of your time installing it. Once installed, this automated trader is all set to do the trading for you with correct results and dependable information.

There are professional advisors to watch the trading and will start orders if you want it. See more about best forex trading robots compared below. You can use this manual as a reference to guide you along the path if online help isn’t readily available. Free updates for this programme are also offered. It also provides lifetime client membership on their net site. From here, you can get and download mandatory updates or program revision for your software. See more about best forex trading robots compared below. Like any ventures, cash trading incorporates lots of risks to take and avoid so it is better to first try the demo program available until you master the system and become used to its interface. After you refined your abilities using this automated trader, you can let FAP Turbo do the trading and researching while you sit back and luxuriate in the fruits of your investments.

Automated forex robot systems are internet advent systems that have been innovated to promote the business of forex trading especially when it’s been done online. It has been designed in such a way that provides online forex trading by the aid of a forex trading robot.

The automated forex robot systems have increased the general understanding of the best way of how best the activities of forex trading should be done. In most cases, they have allowed one to be in a position to make money in an easy way without the learning of all old algorithms that are known to be used in the forex trading business. These systems have over time concentrated the market, when planning to get one, it’s very important that you analyze well whether its scam or it’s ideally genuine.

Since in most cases forex trading has been characterized to gambling, the automated forex robot systems can at times be replaced by obsoletes. Most of the scam automated forex robot systems software’s that are accompanied by the generation of very high returns in most cases are scams. The forex market has been affected by the employment of the new system of operations and the previous used techniques are reaping many returns.

The best thing with the recent automated forex systems is that they have promoted both the operations of the forex traders and investors even those operating from their homes. This software has also enhanced and increased the rates of returns that were averagely received over time.

Automated forex robot systems are becoming far more advanced than their predecessors with integrated algorithms allowing the robot to analyse live feeds to the ability to set up and establish trades automatically without being at the computer 24 hours a day.

If you are looking at making money through Forex trading then a Forex system would be the best investment to make.

forex robot is an efficient tool to enhance the income potentials through forex trading, leaving out all the human limitations.

Forex trading robots are the concern of many who are interested in making money through forex trading. The endurance, and validity of these robots upon the sincerity in multiplying the earnings, within a short span of time, is always a million dollar question by the forex traders. It is unfortunate to know that quiet a lot of people treat the forex robot as another popular online scam and keep blogging about their negative experiences in their trial in the working of the robots. A second thought is very much essential, before deciding the forex robot as online scams. The Google ad sense keeps promoting these robots through posting advertisements. Google’s involvement in the scam, illegitimate and unlicensed prodigy is worth to consider.

The ones who keep passing negative sense about the forex robots lacks the proper awareness or education of them and would not have used them exactly the way the company advices. The adaptation to a change, new and innovation in the technology is always takes a little time. But one must accept these changes and the innovations taking place in the trading tools of foreign exchange market. And they are yet to become much more effective and efficient in the future.

In the real practical online world, the forex robots or the trading machines are highly authentic and much generously recommended for the all the potential and interested individuals who are interested in making fortune with forex robots. The accessibility is worldwide and anyone at the nook and corner can purchase these robots, at a very nominal cost. There is a vast increase in the retired population, who still wish to work and earn their livelihood. The forex trading allows them to do the same, being at home, enjoying the retirement, as well. With the availability of the forex robots, even the beginners can easily swindle huge amount through forex.

It is not an empty promise that the FAP Turbo forex robot will execute profitable trades for you. Many expert and new forex traders have attested to the earning ability of this auto forex trading software. There are other great forex robots such as the forex Megadroid; but you can also trust the earning power of the product under review, to bring you substantial profit over time.

Auto forex trading has almost eliminated the conventional forex trading; it is important therefore, that you critically analyze the forex trading software in town so that you can maximimize the benefits that automated forex trading system offer. One of the good things about the FAP Turbo forex software is that you can be assured of a complete refund of your money if the product does not prove effective. You have 2-3 months to confirm the effectiveness of this product. The product offers excellent result both in back test and live application.

In as much as the forex trade offers high profit earning opportunities, it also has high risk potentials; forex trading robots such as the FAP Turbo, is one of the reliable tools to help the forex trader get sheltered from the storm of risk of loss that is inherent in forex trading. This product offers an opportunity to trade profitably while keeping losses at its lowest rate; as low as 0.5 %; besides, you can go to sleep while the software execute profitable trades for you successfully.

The Features of the FAP Turbo to Aid You in Trading

You do not need much to start earning profit with this unique forex robot; as little as $50, you can start making profits with the use of this forex automated system. The drawdown rate of this forex robot is very insignificant, as low as 0.5% while the profit earning chances are as high as 95 or more.

This forex software is flexible in its installation and use; you have the option of hosting it on a remote server or logging in to the provider’s site to start using it; with the option of hosting the software on a remote server, it is not necessary for you to leave your PC on for the software to function.

The FAP Turbo forex robot seem to be the only forex trading software that presents live as well as back test results, making it very reliable for use. This forex robot also offers dual strategies for profit maximization using the short term scalping feature and a long term method.

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Another thing we know is that whatever the daily dollar volume of the forex market is, it is larger than all of the world’s stock and bond markets combined. And all this liquidity is a good thing for a forex robot.

forex robots, most of them at least, are designed to thrive in volatile currency pairs that offer strong trends. That’s one thing the best forex robots are particularly adept at: Catching strong trends and riding them for big winners. Really good forex robots catch one trend one way and then catch the reversal to double up on the first good trade. The thing is none of this would work with a forex robot if the market itself wasn’t chocked full of liquidity. Liquidity is ultimately your ally and a friend of forex robots, so don’t shy away from it.

Keeping Things Liquid

So how do you keep your forex robot focused on the most liquid parts of the forex market? Easy, have it exclusively trade the major forex pairs. To review those pairs are the Euro/US dollar (EUR/USD), the dollar/Japanese yen (USD/JPY), the British pound/dollar (GBP/USD), the dollar/Swiss franc (USD/CHF) the euro/yen (EUR/JPY), the dollar/Canadian dollar (USD/CAD), the Australian dollar/dollar (AUD/USD) and the New Zealand dollar/dollar (NZD/USD).

These are the major pairs and they account for most of the daily activity in the forex market. It is rare, if not impossible to find a forex robot that doesn’t focus at least one of these pairs and moving away from them over the course of your trading can prover hazardous to your account’s health.

Currencies To Stay Away From

As the forex market has grown, so has the demand to trade currencies beyond the majors. These include the Mexican peso, the Brazilian real, the dollars of Hong Kong and Singapore, Indian Rupees, the South African Rand and the Thai Baht. These currencies are known as the exotics. They should also be known as the illiquids because they simply don’t have anywhere near the amount of transactions of pair like the EUR/USD.

That may not sound like a big deal, but the lack of liquidity with the exotics can prove confounding for a forex robot. It is possible that when you are trading an exotic that there may not be a buyer or seller on the other end for you to close your position with and this can magnify your losses. That situation could be worse if your forex robot is on autopilot without you watching it constantly, so just keep your forex robot away from the exotics.

Indeed it is. In fact, some forex robots already come programmed to use various indicators as the backbone of their trading system, but if you have a forex robot that doesn’t trade with indicators or you would like to program it to do so, that’s a good idea because some of these indicators have been around for a long time and can be quite profitable.

The first step toward making your forex proficient with indicators is making yourself proficient with them. You have to establish what indicators you think might work best with your trading style and which ones you understand. Fortunately, this is easy to do as there are dozens of free resources across the Internet that discuss topics like moving averages, MACD, Stochastics and Parabolic SAR.

Let’s look at how a few of these indicators can be used in conjunction with forex robots.

Explaining MACD

The MACD lines are among the most popular chart indicators that forex traders rely on probably because they’re pretty reliable and fairly easy to understand. The MACD indicator consists of three lines, the first is used to calculate the faster of the moving averages, the second is used to illustrate the slower of the moving averages and the third is used to calculate the difference between the fast and slow lines.

The two lines are not price averages and if you program your forex robot to follow MACD you have to remember that. Essentially what you’ll be programming your forex robot to do is to take long trades when the slow line crosses the fast line in upward direction and take short trades when the slow line crosses the fast line moving down. If you need help with this, read your user’s manual and contact the forex robot’s customer service team.

Stochastics: A Kissing Cousin Of MACD

Stochastics are a lot like MACD in that they involve a slow line and fast line, making this another indicator that works well with forex robots. Stochastics are used to identify overbought and oversold conditions in a particular currency pair. They are measured on a chart numbered 0-100. When both lines are above 70, the currency pair is considered overbought, so you would program your forex to initiate short trades when both lines cross below 70. On the other hand, when both lines cross below 30, the pair is considered oversold, so program your forex robot to take long trades when the lines cross back above 30.

Indicators Are A Friend To forex robots

If you’re looking for a way to boost your forex robot’s performance, indicators are an ideal way to just that. Just remember to keep the strategies simple so your forex robot doesn’t get confused.