Forex Robot Testing

There are few more contentious subjects in the area of forex trading than the use of robots. The term is used to describe any automatic trading system, in which the trader themselves has no control over real-time market transactions. There are literally hundreds of robots available online, all of them using different methods of statistical analysis and AI decision making algorithms. These include popular and well-reviewed sites such as Forex Hacked, FAP Turbo, and Mega Droid. Ultimately, however, all providers of forex robots make the same claim – that they can shortcircuit the market and make their users vast amounts of money.

The advantages of robots are obvious, and largely consist of their lack of human weaknesses. By definition, they lack emotion, and therefore react to changes in the market rationally. They do not hold onto particular currency positions because their pride suggests they should, nor are they worried about taking a risk if the market conditions warrant it. They also boast the clear advantage of requiring no sleep! It is possible to set a forex robot going with a particular strategy and for it to trade continually, 24 hours a day, 7 days a week. If the strategy is correct, and the artificial intelligence works properly, this can produce very large trading gains.

Of course, the flipside of this lack of human control is that if the initial strategy is wrong, very significant losses can quickly pile up. Forex robots have no common sense, and are completely out of your control when they are not being monitored. If market conditions change in a way that their algorithm is not designed to process, or if some technical hitch means that they do not receive a required update, their trading behaviour can rapidly become problematic. What is more, all forex robots depend on fixed behaviours, which can suit certain markets and trading strategies more than others. For example, it is not helpful for a conservative trader to go to sleep and suddenly switch on an aggressive, risk-taking robot.

As with any trading tool, forex robots should be used sensibly, and as part of a wider trading strategy. It should be obvious to anyone that the more lurid claims of the robot designers are not credible. After all, if forex robots were an infallible way of making money, the big trading companies would already have cornered the market on them and would no longer require human input! That is not to say that they are not a useful source of intelligence, and cannot augment the capabilities of a small trading operation. As long as the robot is chosen with an integrated strategy in mind, it can be consulted periodically through the trading day as a source of extra advice, and then switched on during the night to continue operations. It should, however, be checked as often as possible. Any trader with common sense should be using robots to enhance their existing trading strategies, rather than slavishly following the recommendations of artificial intelligence.