Rules of Working with Forex Advisors
Nowadays, there are a lot of scripts developed for automatic Forex trading. They are very popular among traders-beginners who are planning to get rich on Forex with their help. But when using trading robot, you should be careful. Besides the programs which are worth attention, there are dangerous scripts which can not only prevent making the desired profit but also cause the undesirable financial result.
The main is to make correct settings for this robot and control its work.
The majority of robots for autotrading are using such strategies as Martingale, scalping, trading on the breakdown and some other options in their work. Trader should not trade with advisors the work of which is based on the Martingale strategy. Such robots open minus orders more often than other ones. Scalpers are also dangerous although some traders manage to make a profit with their help. The main is to make correct settings for this robot and control its work.
When using the Forex advisors you should follow these rules:
- Test the script. You can use demo account and special tester in order to fulfill this. It will allow you to identify the drawbacks in the program work and to decide whether it is worth to use it.
- Start trading with the minimal lots. While testing, the program should show the efficiency of its work under such conditions. After that trader can increase the trading volume. It is better to start two robots with small deposit than to use one robot.
- Choose the right leverage size. A trader can use the same characteristics, which he is used to set when trading manually. When using the maximum size of the leverage, it is necessary to take seriously the placing of the stop loss and choosing the trading volume.
- Follow the manual. If there is no instruction for the trading robot you like, it is better to refuse using it otherwise you may not reach the desired result.
- Control the deposit. There should be only the funds required for trading on the trader's account. It is better to withdraw all the profit which has been made to the reserve account at the initial stage.
- Use the robot safely. In order to minimize the financial risks, it is better to confirm the executed orders manually. The only case when such option is not available is while scalping in the interval M1.
When following the rules mentioned above, it becomes possible to make autotrading more effective.