The following article will discuss Forex Robots and currency pairs. How Many Is Enough?

Are you thinking about forex trading? Well, when it comes to forex trading, you have to be familiar with the major forex pairs, but does the same thing go for your forex robot? Meaning does your forex robot need to be proficient in trading multiple forex pairs in order to deliver you nice amounts of pips or can your forex robot focus on just a single pair and keep you profitable?

Either strategy has its own set of risks and rewards and the decision about how many pairs to have your forex robot trade lies with you, the buyer, and the decision should be made BEFORE you buy your forex robot.

What’s The Best Choice: Flexibility or Predictability?

This is really a matter of personal comfort. Perhaps you’ve traded on your own prior to making the call to acquire a forex robot and you’ve established a run of success with a single currency pair. You like this style of trading and there’s nothing wrong with that. So if you’re a trader that prefers the narrow focus of solely paying attention to just one pair, make sure you buy a forex robot that jibes with this strategy.

Now don’t expect everything to be pips and roses with a forex robot that focuses on just one forex pair. Even if the forex robot focuses on a heavily traded pair like the Euro/US dollar (EUR/USD) or British pound/dollar (GBP/USD), it’s important to remember that EVERY forex pair goes through lulls and periods of sideways, choppy trade. What does this mean for your forex robot? It means that unless you alter your forex robot’s setting, the robot may over-trade in search of big winners under market conditions that simply aren’t going to present big winners.

On the other hand, a forex robot that trades multiple pairs can rectify that situation, but this type of forex robot has its own pitfalls as well. A forex robot that trades multiple currency pairs can put you at risk of over-trading. Giving the wrong forex robot the greenlight to trade a host of forex pairs can encourage the forex robot to trade too much and that makes your account vulnerable to big losses. In addition, when the forex robot is trading one pair for a loss, it could miss a winner in another pair. So as you can see, there are pros and cons to forex robots regarding how many pairs they can trade.

What’s The Best Choice?

Fortunately or unfortunately, this isn’t an easily answered question. With the freedom of forex trading comes responsibility and it is your responsibility to find the forex robot that best suits your trading style. While there is no empirical evidence to suggest that a multi-pair forex robot generates more pips than a single-pair forex robot, we would play things safe and lean toward a forex robot that trades multiple pairs just so you’re not frustrated by range-bound markets.

Author Bio: Francisco Pizarro G. made a career from Forex and left my profession as a Translator almost 4 years ago; since then I work from home in my small office trading the Asiatic markets during night time, where I found a good niche. I am a fan of Forex Robots

Category: Finances
Keywords: Forex Robots, Day Trading, Forex, Forex Brokers, Finacial Advisors, Expert Advisors