Using forex robot software can be a terrific way to build an income on autopilot, but only if you set it up correctly in the beginning. If you get the configurations wrong, it can just as effortlessly lose money for you. Forex robot software can also be called an expert advisor, or automated forex trading system
The forex robot software will surely come with default settings. These may function fine however you will want to check them by trading with a demo account at first. You will additionally want to put together your individual trading plan. This is fairly simple but it should be designed uniquely for you.
This is what you should include in your Trading Plan:
1. Position
Your position is the amount of lots that you will take on a particular trade. The forex robot software default settings will most likely assume that you want one lot per trade, but occasionally you will come across forex software that includes a sliding range of suggested positions in line with the strength of the trade indicators or depending on which system is being employed, if the forex trading robot operates more than one method. In this case you need to take the largest number of lots and use that as your basis for calculating risk.
Risk is going to change according to risk appetite. In forex trading I usually recommend a risk level of 2-4%. This means that no more than 2-4% of capital will be risked on any single trade. So if a forex trader has a $5000 account, and planned to make use of a more conservative 2% risk management level, then he or she would not risk more than 2% of his $5000 per trade. That would be $100 he could risk per trade.
2. Stop loss level
The setting for the stop loss may be the primary factor determining risk. Theoretically the stop would kick in and close your trade any time market price goes against you to a pre-programmed amount. Once in a while, due to slippage, you might not get that exact price so always remember that you may sometimes lose a bit more than the amount of the stop loss.
Often it is advisable to use the proposed stop loss level preprogrammed in your forex robot software. If you ever alter this, you might find you do not obtain the desired returns because either the stop is triggered too early and too frequently or losses are greater than they should be. So if the stop loss is set at a level that could involve you in a risk in excess of 2% to 4% per trade, reduce the position size, which may mean switching to a mini account from standard or to a micro account from mini.
3. Profit level
The forex trading robot will also automatically close the trade at a predetermined level on a successful trade. Once again, the automated forex trading software will come preloaded with a default setting which the developers have usually tested and established to be the most beneficial. You are able to analyze this on your own if you want.
If the forex robot software covers many different currency pairs, you may find that they all have the same take profit level, i.e. they will all close at the same number of pips profit. In cases like this it may be advantageous tp perform some back tests, because this suggests that the designers have not optimized for all of the currency pairs that the FX expert advisor can handle.
Author Resource:
For more information regarding high quality, extremely profitable forex trading robot software, all with 100% money back guarantees, goto http://www.forexrobotarena.com
Forex Robot Arena Report Blog http://www.forexrobotarena.com/robotblog
![[Valid RSS feed]](http://www.look4articles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
![[Valid RSS feed]](http://www.look4articles.com/images/rss.jpg "XML Feed For RSS")