The first thing to note about Forex Robots is that none of them can perform magic. There are no holy grail trading systems and if there were, one very rich trader would be sitting on it behind a very big wall. What they can do, however is help you with the process of deciding whether to buy or sell a currency pair at a particular time. They are extremely useful at taking out the emotional and psychological elements of trading, which can very often be detrimental to both your wallet and your health. Instead they allow you to trade based on science and logic.
There are numerous day trading robots available for traders to buy – a quick search of Google will show you just how many there are, but in essence they are all mostly designed to be Metatrader expert advisors. Metatrader is, of course, the trading platform that most brokers use and these expert advisors are able to take charge of your trading account and execute trades depending on what parameters you instruct them to follow when you first set them up. That’s why, in a nutshell, they won’t be performing magic. They are simply little programs that you define, to make sure you stay on the trading path that you set out on.
As such there are forex trading robots called Velocity or Momentum Robots. These are robots that study the fluctuations in price (as well as other movements) and then organize them into defined patterns in order to help you understand the market before making a trade. They would show the rise and fall of the market and allow the trader to follow any sorts of patterns that might trigger a price movement, thereby identifying positive trading opportunities.
Also, there are robots called Continuation trading robots. These are robots that look into averages and trends. They would pinpoint trends by monitoring the ebb and flow of the currency market trading. The use of such moving averages is perfectly suited to markets that exhibit (and experience) trends.
There are hundreds of forex trading robots out there. The most popular are Forex Robot World Cup, Forex Megadroid, Fap Turbo, Xtreme Pip Poacher, Forex Shockwave and Forex Bulletproof. Spend some time on the review forums before you invest in any of them. And keep telling yourself – they’re not magic bullets!
Authored by Alex Simmonds
Alex is a freelance journalist and financial blogger. He loves to write about baseball and jazz but spends most of his days writing about tax, life insurance quotes and remortgage rates .