Forex robots are supposed to help traders either find winning trades or trade automatically, without human intervention or interference. Believe it or not, that is actually a big selling point for many forex robots, their ability to trade for you while you’re not at your computer. Install the robot, go to sleep, leave the house, whatever. As long as the forex robot is installed, you could be making pips.

The allure of forex robots cannot be denied, but potential buyers of these products need to do their research and ensure they’re getting a legitimate product. Along these lines, we strongly advise traders to only consider forex robots that have been tested in live accounts, not ones that boast of simulated or back-tested trading performance. Just take the time to do your research and test the forex robot out in your own account before committing a large amount of your trading capital to it.

Obviously, the most important thing to look for when considering a forex robot is consistent performance over the long term. Forex robot Number 1 may be good under one type of market condition, but falter in another. Forex Robot Number 2 may excel where Number 1 falters, but lack in other areas. The goal is to find a forex robot that has been profitable under a variety of market conditions for an extended period of time. Remember, consistency is the name of game when comes to making pips with a forex robot.

Next, you have to make sure your forex robot is a product that you understand and that it is compatible with your forex broker’s trading platform. Most forex robots are compatible with the various Meta Trader 4 brokers and their platforms. This is information you need to acquire before making a purchase. Again, this a shopping list, remember? Most forex robots will feature broker compatibility data on their sales pages. You can also get reviews and product news and updates at dozens of places across the Web.

Last, but not least, know what currencies your forex robot trades. Some forex robots focus on just one currency pair while others trade all of the major pairs with equal proficiency across each. We prefer forex robots that trade multiple pairs, but if you find it easier and more profitable to focus on just one pair, then your forex robot should do the same. The point of the forex robot is to put you in the best position to make as many pips as possible. Period.

Just to review, you want a forex robot that is compatible with your forex broker’s platform, easy to use and understand and probably one that trades multiple pairs. Your list is complete.

Move Your Robot To The U.K.?

Recently, anti-hedging legislation was passed in the U.S. and the unfortunate consequence of this government interference in the forex market is that forex robots operating on US brokerage accounts have had their hedging capabilities cut out from underneath them. The National Futures Association (NFA) is behind the move to eliminate the hedging capabilities of US brokers and the move may put US brokerage firms and traders (and their forex robots) at an acute disadvantage. While holding a long and a short position in the same pair appears to be an offsetting move, many traders and forex robots will hold both positions until a definitive trend has emerged.

So what’s the solution for restoring your forex robot’s hedging capabilities if you use a US forex broker? Fortunately, the answer is pretty clear: Switch to a UK-based brokerage. For example, traders using FXCM can make a seamless transition to the FXCM UK and set their forex robots loose on hedging Tadacip tactics once again.

Know The Pitfalls Of Trading With An Offshore Broker

Unfortunately, for US investors, there are some pitfalls of moving your brokerage account offshore to restore your forex robot’s hedging capabilities. Traders moving their accounts offshore can become subject to state level regulation and if the account size is large enough, Commodities Futures Trading Commission regulation. One option for avoiding such pitfalls and keeping an account within the U.S. is to trade with an unregulated forex broker. Knowing that trades might opt for this course of action, it is surprising that the NFA would have moved to kill traders’ ability to hedge and impact the usefulness of forex robots. Of course, the NFA attempts to defend itself by saying that traders using sound trading principles won’t feel the effects of the new anti-hedging rule. That’s fine, but there is really no justification for limiting the use of forex robots, a product that many traders find useful in their attempt to generate pips.

The U.K. Is Waiting

If you’re feeling the pinch of the anti-hedging rule, ask your broker if it has a UK branch that you can switch over to. At this point, this is the best and easiest way to get your forex robot working again on hedging strategies. Some forex robots have excellent hedging skills and it pays to maximize these benefits to the fullest.

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: personal finance , FOREX , day trading , Forex Brokers , Forex Robots , trading broke