How to Find a Good Forex Robot

The idea of using a Forex or FX robot to automatically trade and make money in the currency exchange market is very tempting. Although they are not the magic bullet, they can make money, if you choose a good one. So what makes a good FX robot?

Step by Step Instructions:

1. A Forex trading robot is not an actual robot, but it allows for automatic trading of currency based on the what the market is doing currently. Most automatic trading software is for a specific pair of currency and will not work for other pairs.
2. The first thing you have to look at when you are thinking about getting a Forex robot is, "Will it work on my platform?" While FX robots are not illegal to use, not all platforms support all robots. MetaTrader is a well known platform and most aautomatic trading systems are designed to work with it.
3. When you find a few Forex robots that work on your platform you have to judge which is the best. The most important things to look at when deciding the software's money management. Even if the software can make a few hugely profitable trades, if it is immediately loses those gains in the next trade, it is far from worthwhile. Sometimes the loses in FX is called "drawdowns", but whatever it is called it is lost money, your money.
4. Next you should look at whether or not the robot has both backtesting and live testing. Backtesting is looking to see how the robot would have performed had it been trading based on past information. The results of a backtest can be very different for the same software as for a live test. Make sure that both tests are providing good profits. You can find active live tests at PipCop.com.
5. Choose a robot that both makes a resonable profit and has good money management. But, don't just load the software striaght away on your live account. Make sure to set it up and trade with it on a demo account at least for a full month before switching it to your live account. Never risk your large accounts with a robot.