Testing your Forex robot in a demo
environment, is absolutely a must before you consider launching it upon a live
trading, real money account. There are thousands of robots out there on the
Internet today. I would say that a good 95% of these don't even work nearly as
good as they claim. A lot of them are just supposed to make money for the
creator and nobody else. It's always sad to read about some new trader falling
for one of these fake robots. They could have simply done a little research on
Forex robots. This could have saved them a considerable chunk of change.
Instead, they foolishly set up the robot on a live account. But what should
they at done?
Every time I hear about a new robot that I
want to try, I will simply set it all up and get it running on a demo account.
What is a demo account? Well, if you don't know what a demo account is by now
then you may want to brush up a little. A demo account is a practice account
that uses fake or virtual money instead of the real deal. Now, there are two of
different ways to test your Forex robot. The first is to put it through a thing
called strategy tester. The strategy tester takes historic charts and tests it
against a robot. The results give a detailed report on things such as how many
bars were modelled, how many profitable trades there were, as well as
unprofitable trades. It also gives you a graph that gauges profit margin.
Another way to test the robot is by setting up on a real demo account. You can
even see where Forex Lasers goes
into detail regarding such Expert Advisors.
Setting the robot all up on a live demo
account will give you a feel on how the robot will act on a regular live
account. It will trade just as it would on the live account. Putting a robot
through the tests will assure that you have a fully functioning automated Forex
trading robot. But most importantly these tests allow us robot traders to
modify our robots so that they will perform as smoothly as it possibly can.
Sometimes robots must be tweaked to run a profitable campaign or session.
Hopefully you have enough common sense to
always test everything long before you try doing it with real money. I know
that may seem like the obvious thing to do seeing as you can instantly lose
everything in a single bad trade. But I still see many people that believe that
the robots will automatically be setup and working right out of the box. I
constantly check and recheck my robots everyday to make sure that they're
running at peak performance. This allows me to rest easy in knowing that my
robot is making wise decisions while I'm away. I have enough confidence in my
robots to let them run all day every day. They constantly pump out profitable
trade's minute after minute hour after hour. No matter what the current market
is like. This is why I always test my robots before I let them run wild.
Having said all that, long term, I doubt
there is a single Forex robot out there that can consistently make money. Put
simply, those sellers that claim theirs are an ATM, are simply misleading
traders.
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