Over the years, Forex trading robots have flooded the market with mixed results. Of course, there are always a good few that work, but unfortunately the majority will eventually fail. In this article, we will look at trading robots, also known as expert advisers, and see if it is possible to have a Forex trading system that really works.
The capabilities of trading systems are their limitations
Expert Advisor Coding is always progressing and there is even software that can read news alerts and adapt this information to commerce. This new wave of programming is at the forefront of using fundamental analysis in trading algorithms; there are issues with what a major merchant might point out, but this is a conversation for another article. The limitations of a trading system are down to the developer. There are hundreds of indicators on the market that guide the markets and they will be the correct percentage of time. The problem is to make sure they are timely enough to make a total profit at the end of the week, month or year.
It is common for a Forex robot to work for a period of time and then go through bad patches that have the potential to eat up all your profits and even blow up your bill. Although these expert advisers are selling well-intentioned, there is no way of knowing exactly how to predict the market, and a rule-based trading system may not respond to the market next year like the previous year.
Adaptable trading system
In conclusion, the Forex trading system that really works will be one that can adapt to the trading environment at any given time using more than one set of rules. Using a system that adapts multiple rules can be adapted to multiple scenarios. For example, a Forex robot that uses a scalping system in a trendy market may lose consistently as the market consolidates. The existence of a system that could detect a change in the market and move to a consolidation technique would produce exceptional results.
There are hundreds of systems on the market and the best advice we can give when buying one is to look at past results and pay particular attention to the amount of disposal. The Forex trading system that really works will have a reduction of less than 20% no more than this, then there is a great danger of eventually swelling your account.