Over the years, Forex trading robots have flooded the market with mixed results. Of course, there are always a few good ones that work, but unfortunately most will eventually fail. In this article, we will discuss the possibilities with trading robots, also known as expert advisors, and find out if it is possible to have a Forex trading system that really works.
Trading system capabilities and their limitations
The coding of expert advisors is always advancing, and now there is even software that can read news alerts and customize that information to the store. This new wave of programming is at the forefront in the use of fundamental analysis in trading algorithms; there are problems with this that a basic retailer might point out, but that’s a conversation for another article. The limitations of the trading system come down to the developer. There are hundreds of market indicators that give direction to markets and they will be accurate as a percentage of the time. The problem is to ensure that they have enough time to secure the total profit at the end of the week, month or year.
It is common for a Forex robot to run for a while and then go through bad patches that can eat up all your profits and even ruin your account. While these expert advisors are being sold in good faith, there is no way to know exactly how to predict the market, and a rules-based trading system may not match next year’s market like the previous year.
Customizable trading system
In conclusion, a Forex trading system that really works will become one that can be adapted to the trading environment at any time using more than one set of rules. Using a system that adapts multiple rules can accommodate multiple scenarios. For example, a Forex robot that uses a scalping system in a trending market can constantly lose when the market consolidates. The existence of a system that could detect changes in the market and switch to the consolidation technique would result in exceptional results.
There are hundreds of systems on the market and the best advice we can give when buying is to look at past results and pay special attention to the amount of withdrawals. A forex trading system that really works will have less than 20% less than anything more than this, then there is a great danger that you will eventually destroy your account.