Forex Trading, Mini Accounts, Online Forex Trading System

As a long time and avid trader of the markets, originally Emini and now the Forex markets it has given me a unique view into how to trade. I have reached a point whereby studying the charts, concentrating on a computer screen endlessly no longer inspires.

A long and hard evaluation of the myriad of Forex robots, which seem to be the ideal way to go, (if they work) has eventuated. What can I tell you!

Do they work, can they work. The answer is that surprisingly a large number of them do to some extent, with a few that perform in a good and reliable manner.

What is their secret. Their secret is quite simple, and can be outlined in a few bulleted terms.

a) Conservative trading style

b) Money management

c) Small consistent profits

d) Realistic stop losses in place.

Let us elaborate on the points above.

A conservative trading style is adopted by those few which are worthy of being called an Automated Forex Trading Robot. They do not trade incessantly, in fact most only trade 1 or 2 times a day, and sometimes will not trade for a few days.

They are not looking for the long haul trending profits. They are looking for the highest probability of profit.

Often this will be in the hours when the US market primarily is not open. i.e. no news to affect the market dramatically.

Money Management and the control of risk is all important. No more than a certain percentage of trading capital should be risked, normally 2 to 3 % at maximum. The better robots are well aware of this.

Small consistent profits with realistic stop losses in place. The hardest part of entering any trade is where to place the stop loss. Too tight a Stop loss and normal market activity will hit it every time.

Too wide a stop loss and the losing trade will dissipate the gains of the last 2 or 3 profitable trades. A fine balance here, which is well controlled by the better robots.

In Summation, Automated Forex Trading Robots have not solved the universal quest for the risk-free trade. They have not found the magic formula whereby the money just flows endlessly. What they have formulated in a commendable manner is a balanced and non-emotional approach to sensible and profitable trading.

I personally utilise them solely for my trading. They do work and do maintain profitability.

They are improving all the time. If a commonsense, practical and conservative approach is made to your trading then substantial profits will result.

The Author is an experienced Eminis and Forex trader of many years.
After many years of manual trading, more time is now focused on Forex Robots for trading.
Further articles and advice can be found at the website.
http://www.forexrobotwiz.com

Unfortunately there are a lot of Robots out in the marketplace which are just that, SCAM. It is sometimes difficult to ascertain which one is just that.

My thoughts on this always are to be wary of the outrageous claims.Check them out for Support, read the reviews on the various Forex Trading Forums. Mind you, you need to be careful here, as the unscrupulous may well have already placed numerous great appraisals on the forum using bogus contact details.

I am a great believer in Forex Robots, in the past I have traded Eminis and the Forex market manually. I have had success doing this, but I must admit I have just become tired of watching a computer screen all the time.

Then missing the trade because I was tired, lost focus, went for lunch etc. Those who have traded this way will understand what I mean here.

I believe that there are about 6 to 10 Forex Robots worthy of consideration. Of course they put up impressive websites, and give the Sale Patter, but those that I am comfortable with can be forgiven.

It is after all a Commercial World that we live in and if they did not act in this manner then they would be swamped by all the other Forex Robot vendors. What should we look for!

a) Good results. Even impressive

b) Support

c) Money back guarantee.

I am sure there are other items to look for but that will suffice for now. I have found that a combination of 2 or 3 of the best Robots is the way to go. Let them run demo for a little while and then go live.

Do not, although I have been an offender of this in the past, interfere with the trading. The temptation always remains to Take Profit manually and let the Stop Losses run automatically.

The robot must run on its own, and the only manual input should be evaluation at 24 hours, and weekly. If the profits are in place, then the only decision is to whether to increase the lots or not.

All Robots will have the occasional bad run. The trading market is not always predictable or stable. It can have periods of great volatility.

Not to worry, let the Robot run on Automatic. I have pulled the plug in the past when there is a succession of losses, only to see the market recover.

Then there is a string of winning trades which would have cancelled the previous losses and shown a handsome profit. My suggestion is pick 1 or 2 of the well known Forex Robots, try them out. They will honour a money back situation if you are not satisfied.

Steer clear of those that are suspect. Some signs of this will be poorly laid out websites, or maybe overly flashy websites and nonsense promises of an endless supply of money On Tap.

It is an exciting area to be involved in, one which I enjoy very much. Forex Robots have relieved me of the constant screen watching, the reminiscing and regret over the trade that I should have taken.

It has allowed me to spend time writing articles, setting up websites, and other challenges. Ignore the Scams as best you can, and just get out there and enjoy Forex Trading

The Author is an experienced Eminis and Forex trader of many years.
After many years of manual trading, more time is now focused on Forex Robots for trading.
Further articles and advice can be found at the website.
http://www.forexrobotwiz.com

Everyday retail traders are joining the forex market at an escalating pace. Featuring prominent investing assets like the dollar, euro, yen, and other currencies, strong liquidity, geographic dispersion, and a continuous marketplace, forex trading is growing in popularity.

Yet many beginners fail to adequately prepare themselves to successfully trade money. Even seasoned traders make mistakes. New traders should educate themselves regarding the pitfalls of currency trading before becoming a player in the foreign exchange market.

Beginners should be aware that forex trading often involves substantial leverage. Losing money and making profits is thus amplified through this leverage feature. A common trading strategy in the forex market involving leverage is called scalping. Here, a trader would borrow on margin to buy a currency pair and look to sell it expediently after a small price move. Leverage is a risky technique that would only be employed by experienced traders.

Because leverage is such a prominent component of forex trading, a risk premium should be added into currency valuation. If a trader is hit with a margin call, they must be able to meet the maintenance margin. Develop a trading strategy that fits within the context of a budget. An invaluable tool every forex trader should be familiar with is stop-loss orders. By putting stop-loss order in place, traders can effectively cap their losses.

Many traders develop computer-generated models to recognize trends and key reversals within a currency pair to find entry and exit points. But simulations are not foolproof and real-time currency trading can differ vastly from models. New currency traders should actively monitor forex transactions to avoid losing money on volatile price swings. Data mining in the currency market can give erroneous trend and reversal indicators just as easily as accurate signals.

Predicting forex prices can be difficult without the proper experience or training. Currency prices can be very volatile and they can be manipulated by central banks for geopolitical purposes. In addition to central banks, major players in the currency market include governments, commercial banks, investment banks, hedge funds, and other large financial institutions. Currencies are also subject to technical trading patterns, overarching macroeconomic conditions, and long-term trends, amongst other variables.

A successful trading strategy should be pliable. Don’t add to losses by hoping that losing positions will turn around, even if analysis is saying the opposite. Overtrading is another common mistake new currency traders make. If an opportunity presents itself, traders should attempt to capitalize on it. But trading just for the sake of trading is foolish.

There are subtle differences between traditional instruments - like stocks - and the forex market. One common misconception new forex traders sometimes have is thinking transaction costs are substantially lower than other instruments because there are no commissions. While it is true that brokers do not charge commissions for currency trades, equivalent costs are built in by large bid-ask spreads. Another difference is the uptick rule does not apply to the forex market.

Yet despite some minor differences, the currency market is relatively similar to traditional financial markets. Instruments like forwards, futures, and options that are used for stocks and bonds are also common in the forex market, although valuing these currency vehicles differs from their equity and fixed income counterparts.

With the right knowledge and preparation, trading money can be a big moneymaker.

Matt Kaldor is a senior content writer with Better Trades, the nation’s No. 1 stock market education company.

Impartiality is what people look for in Independent Forex Robot Reviews. I have some difficulty in the quest for honest, impartial and credible advice.

Can a review be truly impartial. I do not believe so, but with some careful research and commonsense it is possible to separate the hyperbole from the real facts. I do not believe that any person or company that is involved in the promotion of Forex robots for income generation can be truly detached from any vested interest.

It would be contrary to the spirit in which they wrote the article and promoted the product. What we can hope for is that they are ethical in their recommendations. That they are conscious of the benefits in promoting a quality and worthwhile product.

The confidence that will be built in their company.Subsequently that same confidence can flow onto forex robots that they promote and sell.

Of course this confidence built will allow future business to be generated for the said company and a larger clientele as a result. How can we be sure that we are dealing with such a company.

I would suggest using the internet as the primary source here. There are numerous forex forums, which largely are occupied by traders who are solely looking for a good deal.

They do not have vested interests normally and reading those. By following their comments can help the reader to form a reasonable idea as to who of the promoters of independent Forex Robot trading reviews is given at least valid and helpful independent advice.

I am an avid supporter of the concept of forex robot trading. The endless hours pouring over charts, watching a computer screen no longer inspire me.

Forex robots are the way to go, even taking into account the myriad of websites, prophetic claims, and utter nonsense being promoted. It is still possible to find a number of Forex robots which will trade in a responsible manner, with the correct adherence to money management by conservative trading techniques.

Ok, maybe they will not double your money by the end of next week, and make you a millionaire by the end of the month. What they will do, is preserve your capital, and ensure that on a daily, weekly, monthly basis that your trading capital moves in the right direction. i.e. UP.

All you need to do is to consider whether to increase lots to ensure more return on your invested capital. It is an exciting area to be involved in.

Generation of substantial income is possible for the conservative, practical person who utilises commonsense in their method of trading. It certainly helps in the attempt to trade stress free.

The Author is an experienced Eminis and Forex trader of many years.
After many years of manual trading, more time is now focused on Forex Robot Trading
for trading.
Further articles and advice can be found at the website.
http://www.forexrobotwiz.com

In many ventures, especially in online trading the greatest concern is when your laptop or PC goes down, hibernates, and crashes etc whilst in mid trade. What can be done.

The solution is simple. Set up a VPS Host, effectively another computer to run your program and trades on a 24/7 basis.

VPS (Virtual Private Server) hosting allows the Forex traders to use the virtual environment on the hosting company’s servers to run the Metatrader expert advisors. This gives the trader the ability to run the robot non-stop 24 hours a day, 7 days a week.

The VPS is always on-line, it won’t reboot during the trading week, it’s not affected by the power outages and you don’t need to worry about keeping your PC always on. If you want to run your expert advisors continuously without the unplanned interruptions then Forex VPS hosting for Metatrader is critical.

How do you go about this. It is much simpler than a lot of people would imagine.

There are numerous companies offering the service, but I suggest going with the larger, more credentialed companies. There are sufficient of these to suit all needs.

These companies will maintain quality and continuity of uptime at extremely high levels, alleviating the main concern of online traders. They are in fact relatively cheap, a number of those will already be set up for Metatrader and Forex, but this is not entirely critical.

What is necessary though is to minimise the distance from the VPS to your Forex Broker. Latency is the issue here; basically Latency is the delay in transmission.

Let us elaborate, your Forex Robot program gives a signal to buy or sell, there is a perceptible time delay for that signal to arrive at the broker for execution. Agreed, that is in the order of milliseconds normally.

Those who live at a long distance from the broker will understand that this almost imperceptible time delay can result in a noticeable difference in the bid or ask price transmitted and the price achieved. Of course, closeness of the VPS Host to the broker will not always give the optimum price, but it assists and puts the odds in your favour.

It is highly recommended that before any serious Forex Robot trading is attempted that a VPS Hosting Server is in place and running your programs. This will assist greatly in the reduction of stress levels; it will lead to unemotional and ultimately more profitable trading.

Once the cycle of high stress, varying emotions dependent on the trade, then it is possible to concentrate on the maximising of trading profitability. With the Vps handling the trading you will find that your profitability will rise as you evaluate the robot program

The Author is an experienced Eminis and Forex trader of many years.
After many years of manual trading, more time is now focused on Forex Robots for trading.
Further articles and advice can be found at the website.
http://www.forexrobotwiz.com

Martingale is a theory which is often mentioned on the various Forex trading forums.

Firstly a detailed explanation of the history of Martingale and what is pertains to do is required.

Let us use a brief definition here:

Originally, martingale referred to a class of betting strategies popular in 18th-century France.

The simplest of these strategies was designed for a game in which the gambler wins his stake if a coin comes up heads and loses it if the coin comes up tails.

The strategy had the gambler double his bet after every loss, so that the first win would recover all previous losses plus win a profit equal to the original stake.

Since a gambler with infinite wealth will with probability eventually flip heads, the Martingale betting strategy was seen as a sure thing by those who practised it.

I realise that the above is an overly longwinded description but the basic synopsis is that in gambling every time there is a loss, and then you double the next bet.

The assumption is that ultimately your luck will change. Can we as rational, unemotional and experienced Forex traders allow ourselves to utilise this technique in our trading.

Various Forex trading systems and Forex trading robots claim to use this system.

In reality, those Forex trading systems and Robots invariably do not hold to the true tenet of the Martingale definition, and they should not.

Let us expand on this.

Assuming that we entered a trade with Stop Loss and Take Profit levels equidistant from the entry price. If we take profit then no issues arise.

If we lose then doubling the bet each time gives us the following situation.

1st loss 2 times original lot size.

2nd loss 4 times original lot size.

3rd loss 8 times original lot size.

4th loss 16 times original lot size and so on.

At the 8th loss we are now at 256 times our original lot size.

What does this mean is actual money. Assuming we originally placed a Stop Loss/ Take Profit at $10, we would at our 4th loss be down $150.At our 8th level our original $10 risk would be down $2550.

Do we pull the plug here or wait for the 9th level. This is gambling.

Rational and successful Forex Traders would abhor this definition of their trading style.

This defies all our trading rules about conservative trading with good risk and money management.

One of the most widely mentioned Forex Robots utilising Martingale, does in fact use a variation, which deserves further observation. Namely, it will allow up to an 11th level, i.e., 11 consecutive losses before exiting the trade.

How they do this is, after entering the trade, if it goes if the direction of the trade they will stay with 1 trade. If the trade goes against them by a certain percentage, (they set up a grid pattern for this).

They will add another increased lot and so on, and the price continues to go against them up to the 11th level. What this means is if the original trade is for 0.10 lots, then the subsequent is for 0.11 or 0.12 depending on the multiplier used.

At the 11th level up to 50% of original capital is at risk.How does this work in practice.

My work on this has shown that it will maintain a good and impressive profitability for a month or two and then shoot itself in the foot literally.

If you utilise this approach, and have 2 months of good profitability and take a percentage of the profits out of the increasing capital then it is fine. You would then consider yourself a truly accomplished trader, balancing a sensible trading manner with an entrepreneurial approach to the Forex market.

If on the other hand you hit the 11th level loss early in your trading history with this style then you would consider yourself quite rightly in error for not following the trading style required.

I have looked long and hard at this style, but must now reject it totally.

The Author is an experienced Eminis and Forex trader of many years.
After many years of manual trading, more time is now focused on Forex Robots for trading.
Further articles and advice can be found at the website.
http://www.forexrobotwiz.com

Can a Forex Robot out-trade a highly experienced human! Does the Robot have the necessary intuition and savvy to ascertain when a trade is viable, or when to exit the trade!

A robot is mechanical in concept, its judgement calls are based not on emotion but on rational facts. Admittedly the Human does have the ability to sense a good trade, the ability to instinctively know that the trade is not working out, the ability also and unfortunately to get it wrong.

Of course the Robot will not get it right all the time, but does this matter. No, it does not matter and quite rightly.

What we ask of an Automated Forex Robot is that it maintains a forward and controlled slope upward of profitability. That it maintains a balanced approach to the trades, that it maintains a predictable money management and risk control policy.

The Robot does not suffer the problem of distraction, tiredness, the need for a break, and the lack of focus that comes from watching a computer screen endlessly. The human trader may have instinct, intuition, savvy, experience and the ability to feel a good trade, but the Human is only Human, with all the foibles that this entails.

What I look for in my trading is profit in a controlled manner, the robot still will come up Trumps for this. Of course, it depends on the Forex Robot, and how it is set up.

The Robot needs to be researched, demoed, and a plan formulated before going live. I know from Personal experience that once you have reached this position, what is necessary then is to go live. We do need the program to remain live.

It is very easy to watch the Forex Robot in action and for the human element to try and intervene. This must not happen, as the Robot is making decisions based on losing trades as well as winning trades.

We certainly do not want the computer to crash, hibernate; power down etc as sometimes happens with our personal computers and laptops, and hence I would recommend utilising a VPS.

Also, from personal experience it is vitally important to let the program run without human input. The desire to take a profit before the trade has reached its profit level always remains strong.

The program must take profits and must take losses. What we must do is evaluate the results at the end of each 24 hour period.

If it is making profit then our only decision is whether to increase the lots traded. I, for one believe that the Robot will always beat the Human is terms of long-term sustainable profitability.

The Author is an experienced Eminis and Forex trader of many years.
After many years of manual trading, more time is now focused on Forex Robots for trading.
Further articles and advice can be found at the website.
http://www.forexrobotwiz.com

Do the results of back testing mirror the forward testing results. Certainly the back tested results put forward by the more unscrupulous purveyors of Forex Robot trading schemes are to be lightly dismissed.

It is easy to adjust the trading parameters retrospectively to suit the result. Widely optimistic claims are just that. Rational, reasonable results are to be believed.

This is not what I am referring to here in my title, although it could be the subject of another article. What I am referring to is the work that we may conduct of a Forex Robot that we have purchased.

We conduct a back test, back a week, month or year. We are feeling comfortable with what we see, and we feel excited with what the future holds.

But, we remain cautious about whether the program will perform in this manner going forward in live trades. Subsequently we remain wary to let it run with the high number of lots that we back tested with.

It is a rational concern; after all we have all heard and read the hyperbole about back testing is not to be compared with forward results. Ok, what is the truth here!

Back testing does not have to deal with good or bad news emanating from the USA primarily about the state of the economy, this is true. Good and Bad news can sometimes throw the markets into a tailspin.

What I have found is that the back testing of Metatrader, whereas it is not the ideal medium, it is reasonably indicative of the results going forward. If, it has some downfalls, so be it, I still find it to be a great assistance. I have not noticed any great differences between back testing and forward results.

If the back testing is showing results that you are comfortable with, then go live. Start conservatively, with a reduced number of lots, and evaluate the results on a 24 hour basis.

I have conducted numerous back-tests, and whilst metatraders back tester is not the ideal it is still very helpful. It is exciting to watch a Robot make the trades without your constant concentration of the computer screen.

I am firmly convinced of the viability of Forex Robot Trading, and will continue to trade in this manner. Forex Robot trading is an exciting means to generate substantial income if commonsense, practical and conservative methods are adopted.

Back test by all means, then forward test to prove all is Ok then go live. Back testing can be very helpful in checking that the program is stable, and that no unusual trades are taken.

The Author is an experienced Eminis and Forex trader of many years.
After many years of manual trading, more time is now focused on Forex Robots for trading.
Further articles and advice can be found at the website.
http://www.forexrobotwiz.com

Firstly the article would intimate that my initial comment on How would be to enter into a lengthy technical discussion. This would be in error, although a lengthy technical description could ensue.

My evaluation of the various good and sustainable Forex Robots in the marketplace is that they work by being extremely Conservative.It is necessary to elaborate on the term conservative.

Of course, the question is raised that if they are so Conservative, how can they trade Forex which on the face of it does not lend itself to a Conservative manner. What the Robot does is look for the ideal condition when the Odds are stacked in its favour.

Acknowledged that this is a gambling terminology, which I am not forwarding as to have anything to do with Forex trader.I assume that the term Odds is understood here in its theoretical interpretation.

The Robot looks for the highest degree of profitability, when the markets are quiet, when the spreads are minimized, when the indicators are all favouring the trade. Quiet markets are normally the most unsocial, and normally sleep time for most traders, but this is when there is no news to move the markets erratically.

When the Robot does in an admirable manner is evaluate all the data being presented. It takes the various technical indicators and formulates them into an ideal set up.

Could a human do this!Yes, a human could do this if they were willing to focus on the screen for 24 hours a day, and remain able to make the rational and knowledgeable decision when it appears, which could be in 1 hour, 4 hours, 24 hours time.

What I am inferring here is the Robot is the reflection of a humans evaluation of trading, but the Robot does not look away at the wrong moment, get distracted, and have blurry eyes. It is able to make the split second decision without bias or emotion based on technical facts and criteria presented.

So, how does it work, it evaluates technical inputs presented to it, it quantifies these without the absolute minimal risk of a loss. Of course it sometimes gets it wrong, but the majority of times it will make the right Call and a profitable trade will eventuate.

We, as humans and as experienced traders know that this is the correct method, although as humans we make incorrect decisions due to a hunch, need for action etc. The Forex Robot cannot do this, it has no emotion, and hence it will trade better than we will ultimately in the long run.

The Author is an experienced Eminis and Forex trader of many years.
After many years of manual trading, more time is now focused on Forex Robots for trading.
Further articles and advice can be found at the website.
http://www.forexrobotwiz.com

A lot of forex traders prefer to take a long-term view when trading the currency markets because the large price moves can result in some huge profits, even if you only manage to capture a small slice of the overall trend. The trick is to stay on the right side of the trend, which you can do by using two simple technical indicators.

The first of these indicators is the Supertrend indicator. This indicator is not widely used simply because it’s not included with a lot of charting software. Therefore you either have to find a charting package that includes this indicator, or use a platform that allows you to download it from elsewhere.

However the point is that the Supertrend indicator is actually a very useful indicator because just by looking at it you can instantly tell whether the trend is currently upwards or downwards. It couldn’t be any easier to use because if the price is above the Supertrend indicator the indicator itself will be represented by a green line (indicating an upward trend), and if the price is below it will be a red line and will signify a downward trend.

This does sound like a fairly basic indicator but it does track the price extremely well and does a great job of alerting you to any changes in trend. You can use this indicator on any time frame, but it’s most effective when used on the longer time frames such as the daily or weekly charts, for example.

The other indicator that I like to use on the long-term charts, and the daily chart in particular, is the EMA(200), which in layman’s terms is the 200 day Exponential Moving Average. This indicator is also very helpful because if the price is above the EMA(200) and the EMA(200) is sloping upwards, then the trend is obviously upwards as well, and therefore you should only be looking to go long. Similar if the EMA(200) is sloping downwards you should only be thinking about opening short positions until the trend changes.

So overall if you do have aspirations of becoming a profitable long-term trader, it pays to use some useful indicators such as the EMA(200) and the Supertrend indicator because they can instantly provide you with the direction of the trend. Therefore when they are both signifying an upward or downward trend your job becomes a lot easier because you know which direction you need to be trading in. The only thing you need to do is devise a strategy which helps you find a way of determining the most effective entry and exit points.

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