If you are about using a Forex Trading Robot or EA on your trading account, it would be very necessary to understand some few tips that are recommended before buying or using an one on your Forex account.
Forex Expert Advisors are very useful automated trading systems that traders can apply on their trading account. The use of these robots have eliminated lots of pitfalls that befall traders like poor trading skills, emotional state, poor money management principles as so many other ills that affects manual trading. The use of Forex robots also allows the trader to have the freedom he longs for allowing him to do other things.
But from history, many robots have had very poor performance, bringing losses to the Forex trader’s account.
Few EAs have been able to offer competitive returns to deserving traders that took the time to research and identify them out of the hundreds available in the market.
The reason we have decided to explain some tips on how to identify and test a good Forex robot.
1. Make sure you see the trading account history of any Forex robot before using it on your account. At least 3 months trading history is okay
2. Ensure you test any forex expert advisor on a demo account for at least 4 weeks before using it on your live account. Make sure the demo testing account would be on same forex broker as the live account
3. Only Purchase Forex Robots that offer money back guarantee. This would be necessary to get your money back in case the robot does not perform well on your account.
4. Ensure you read and understand fully the installation manual that comes with the ea in order to use the right settings for your account.
5. It would be very wise to use the same trading capital that would be used on your demo account also with the Live account. This is to allow the forex robot a similar money management strategy when trading with Real money
6. It is necessary to use a Forex Virtual Private Server (VPS) for any automated trading system you intend using. As the VPS would ensure 247 internet access for the forex expert advisor to trade.
7. if you are testing different EAs, ensure you create different demo accounts to test them. That is, only use one demo account per expert advisor.