One of the great things about using a forex robot is the fact that many forex robots come programmed with default settings that can net traders some decent pips right off the bat. That is a great feeling, especially for a new trader, but where do you turn when market conditions change and your forex robot doesn’t follow suit? That’s one common gripe that traders have regarding forex robots: They work well under certain market conditions, but when those conditions go by the wayside, the forex robot suffers as a result of the negative market conditions.

What Is The Answer?

Unfortunately, some forex robots really are limited by market environment. They perform well for a little while and then simply fade away. That said, a lot of forex robots just need a little tinkering to resume pip generation. That is why it is integral traders understand their forex robot’s settings prior to unleashing the robot. For example, some forex robots only trade one major currency pair. Many one-pair forex robots focus on the EUR/USD pair. That is fine as this is the most heavily traded pair, but traders that know their forex robot only trades this pair would do well to alter the robot’s settings when this pair enters a sideways pattern. Sometimes the answer can be as simple as merely changing the timeframe in which your forex robot trades, from say a 15-minute chart to a 30-minute or hourly.

Then there are the forex robots that trade multiple pairs, which is usually an advantageous feature, but this can something traders need to be aware. Problems may arise from your forex robot taking too many trades if it trades across multiple pairs and this can impair your bottom line. Again the fix here is pretty easy. A simple tweak of a few settings here and there and can limit your forex robot’s trades in pair and even bolster them in the pairs where you’re noticing strong trends.

Learning Your Robot’s Settings

Don’t succumb to demo account results or back tested trades posted on sales pages. The best way to learn about your forex robot’s settings is through live trading, but before you take that step, read the instruction manual that accompanies your forex robot. Remember that every forex robot’s backbone is different. Some forex robots function on artificial intelligence. Others use varying forms of technical analysis. Regardless, it is beneficial to know what your forex default settings are. After all, how can you change them when the time comes if you don’t know how they work in the first place?

Simplicity Is The Name Of The Game

When it comes to forex robot settings, things can get confusing in a hurry and many traders make the mistake of thinking the more intricate a forex robot’s settings, the more pips it is going to deliver. This isn’t always the case and sometimes the best settings for your forex robot are the ones you can implement yourself with little or no hand-holding.

Author Bio: Retired Canadian Economist. My main activity since Winter 2006 is trading Forex. I’ve been trading currencies online with the help of EA’s (BTW, the best source for EAs is Forex Robots) and I currently manage trading accounts at two Forex brokers in the US and in UK respectively

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