Greetings, dear readers!
Nowadays, automated trading is gaining more and more popularity. It is known that trading takes time, perseverance, and coordination. And in the trading process, timely support is often lacking. Here trading advisors come to the rescue of the trader. Let’s find out a little what is the purpose of forex robots and what they are.
Forex Expert Advisor: what is it?
A trading advisor is a program with a defined strategy that analyzes the market and automatically manages the trading process to make deals. Expert Advisors are able to independently trade, open and close orders. Thus, the use of a Forex advisor in trading increases the productivity of work when trading on the Forex market.
Today we have a large selection of trading robots. But using them to work in the market requires a lot of attention to detail. Indeed, in the Forex market, you can get income only through a proven trading strategy. Therefore, before making a purchase, you should understand how to choose a robot and not waste your money.
It’s easy to spend money, but it’s harder to earn it.
Every day there are more and more offers to buy an advisor. But, to be honest, most of them are a complete scam. Often, all promises about the advisor’s super profits are idle talk and deception. Many traders, having bought and entrusted their account to “such a robot”, remain at a loss. But you can always control risks with a third-party advisor such as Risk Manager.
Of course, there are advisors worthy of attention. But how to identify and choose the best Forex trading robot?
How to choose reliable forex trading advisors?
This question is asked by many traders. And to make their predictions more accurate are their main reason for buying a Forex trading advisor.
When choosing a trading robot, several criteria must be taken into account:
- Monitoring
Monitoring trading robots is an important condition when choosing an advisor. Well-known platforms for analyzing trading account data are MQL5 and Myfxbook.
It is important to note that it is worth evaluating a robot by monitoring a real account. With its help, you can find out and evaluate the effectiveness and profitability of the advisor you are interested in.
- Availability of reviews and positive reputation
Before buying a forex robot, be sure to check if there are real reviews.
Of course, the likelihood of their veracity does not always exist. Therefore, be skeptical of both positive and negative reviews. Rely on them only in conjunction with the results of testing and monitoring trading robots. After all, the most reliable review is your own
- Demo version available
The test version of the robot gives you the opportunity to try to trade the Expert Advisor on the strategy tester and understand the principle of the Forex robot. Thus, the trial version of the advisor allows you to determine how your chosen robot behaves in real trading on the Forex market.
- Profit and risk index
The first thing that newbies want from an advisor is at least 30-40%, or better 100% per month, while no one wants to take into account the realities of the market. From my experience, I can say that a decent result for an advisor is 5-10% per month, taking into account that you control the risk in each transaction. You can earn both 100 and 200% per month, but at the same time, most likely, the adviser has no limited risk and therefore your risk is limited only by the size of the stop-out, which, roughly speaking, is the majority of your deposit.
Based on this, let us remind you of the “Dry and boring truth about risk management”.
Risk management is the most important aspect in trading. Some forex advisors perform the least risky trades, but they do not bring much profit either. Others, on the contrary, put big risks with the hope of getting a good income.
In this regard, it is worthwhile to understand for yourself what losses you are ready to allow, since you should risk no more than you can afford to lose.
- Availability of support and adequacy of the author who sells the advisor
This is one of the key points to be considered when choosing a trading robot, because in most cases, an advisor for usera is a “black box” that trades when it wants to and as it pleases. And only the author can help and guide on such points as the correct setting of money management, setting the login parameters and, in general, recommendations on which tools to use and how to use it correctly.
It is very simple to check the author for adequacy, ask him a couple of questions about the advisor, and you will see if he connects, tries to help you, how fully answers the questions. Usually this is enough to make a decision whether you should use this EA or not.
Conclusion
Therefore, we can conclude that choosing an advisor is not an easy and responsible step. After all, incorrectly chosen forex trading advisors can result in big financial losses. Thus, you will get the best Forex trading robot that will serve as your best assistant in making money in the market.
I wish you successful trading!
The article was prepared by Alisa Nekrasova,
content manager of the SoftimoTrade.com team
