Deciding on a forex robot can be a time consuming process. You’ve got to spend time testing it, in a live account of course. Then there is tedious research involved to verify the forex robot’s trades from its trading statements. There are other time-consuming endeavors that can make choosing a forex robot a downright daunting task.

However, there is a way for traders to save time when investigating forex robots. The best way to do this is by knowing right off the bat what your trading style is. Meaning are you a day-trader, swing trader or long-term investor? And are you comfortable taking trades in just one forex pair and do you like the versatility that multiple forex robots can offer?

Know Your Forex Robot’s Features

It’s imperative you know all the features of a forex robot BEFORE you buy it. What’s the point of buying a forex robot that only recommends one or two trades a week if you’re an active day-trader? There is no point! So if you’re an active trader and you come across a forex robot that says it may only initiate one or two trades a week, and there are forex robots that do this, you should evaluate another product.

Conversely, if you’re a swing trader, you’ll want to shy away from forex robots that recommend several trades a day. A lot of forex robots that are geared toward day-traders can be guilty of over trading and this can put your account at risk. In addition, some forex robots that trade heavily in the intraday timeframe focus on scalping rather than smaller amounts of trades that net large amounts of pips. Make sure that you’re comfortable with this style of trading prior to committing to one of these robots.

More Pairs, More Profits?

As we’ve discussed in previous articles, some forex robots focus solely on one forex pair. You’ve probably come across a few in your own search for a forex robot, and frequently these single-pair forex robots specialize in the EUR/USD pair. That’s a good pair to focus on as it’s the most traded pair in the world, but the heavy volume in the EUR/USD doesn’t inoculate it from lulls and choppy, tight trading ranges. And nothing frustrates traders more than tight ranges.

On the other hand, many traders enjoy the versatility of a forex robot that trades several or all of the major pairs. At the very least, traders that don’t like focusing on a single pair should find a forex robot where the settings can be tweaked to trade more than pair. There is no empirical evidence to suggest that trading more pairs can net you more than pips than trading just one pair, so this aspect of your forex robot simply boils down to what you feel comfortable with. And that’s just the thing with forex robots in general. You’ve got to know what you’re comfortable with and what works for you in order to find the forex robot that is likely to get you on your way to massive pips.

Author Bio: Brenda Maison is a 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