In this blog post we’re going to be talking about the best forex trading robot, and five things that you should look for when choosing a trading robot. Okay. So in this blog post, we’re gonna be talking about the best forex trading robot. But, more importantly, I want to give you information and five things that you need to look for when you’re choosing an expert advisor, choosing a trading software or an auto trader. These are things that you actually need to look for. Okay, now let me tell you the quick back story before I get in through one through five, when I first got into trading and started studying and started absorbing all this stuff, it all seemed to sound like you need to trade like a robot right.
You need to follow a system you need to trade unemotionally, and so for me, just logically, it made sense that, okay, if I’m following these rules manually, then why couldn’t something be automated to do it, and so, when I came across this world of auto traders or Forex robots:
I got really excited that I could have a lot of this process automated and I’m an emotional guy right. So I make an emotional decisions like everybody does, so this was really really exciting to me and I tried a whole bunch of different expert advisors or trading robots and, to be honest, most of them failed me. I mean I lost money and the majority of them. I blew entire accounts are probably three or four entire account using trading robots and so cool. That’s fantastic, a really smart decision, young man. We can put that check in a money market mutual fund, then we’ll reinvest. The earnings into foreign currency accounts with compounding interest, and it’s Good. It was like kind of like a mission of mine to go out there and find something that actually really worked. And so we went out me and my two partners and we literally reviewed every single forex trading robot, that’s on the marketplace. Today I mean we talked too so many different developers. I mean we’ve read millions of millions of back tests and this is our criteria for finding a good trading robot. So if you’re using one right now, then this may save you a lot of money from blowing your account eventually down the road or, if you’re looking for one. This will actually give you great information on what you should actually look for and will also go ahead and tell you about our trading robots on each. I think we have the best, but I’m a little bit biased, but that’s not the purpose of this blog post. The purpose of this blog post is to educate you on what you should actually be looking for. So the first thing that you should be looking for when testing a trading robot or a trading system is you need to back test the system? There’s a famous book on Forex called naked Forex. I think it was written by the guy that started the brokerage FX choice, but he basically says that that’s how professional traders have confidences they back test their systems over time. Now he was talking about a manual or an automated system, but in this case we’re talking about an automated trading system. So what is back testing? Back testing is simply running your trading system over a historical period of data. Now why this is important is because it’ll give you a lot of insights about how your trading system actually performs and how it actually trades and how it was likely to perform over time now to run a back test there’s a few different things that you can do You can do it in MT for Mt 5 or if you have a multi pair system. You know your trading strategy is a conglomerate of different currency pairs that it trades. Then you can use something called quant analyzer, which I love, quant analyzer. It’s it’s a really a sophisticated tool where you can upload all of your back tests and you can see a whole bunch of really intricate data about.
What’s actually happened with your trading system now I like to make sure that my trading system has lasted at least ten years, all of our systems they’ve last at least 16 years in a back test, if you’re using a trading robot you’re planning on using a trading robot
That you can’t back to us, I don’t know, I think you’d be absolutely crazy to try and forward test that with your real money it just I don’t know it just doesn’t make any sense to me so back testing when we’re back testing we’re looking at how Much is the max drawdown right like how much risk is our account at we’re. Looking at stuff like the wind to loss ratio, we’re looking at stuff, like the average size that a winning trade is, or the average size that a losing another thing that we really look forward to figure out the worst case scenario, robust maximum consecutive losses that happen In Roe, so let’s say that it’s 30 and then we multiply that times the average loss which let’s say, was $ 100. At that point, you know you, your maximum drawdown in a worst case scenario would be like $ 3,000 right. So that’s number one is back testing your system. You have to do that. Absolutely the longer you can back tests. The better okay second thing is to forward test your system, and obviously this is incredibly important. Even if you back tested back tests can be different than forward tests, so what you want to do is at least forward test for like a couple weeks or a month, and then you want to compare okay. Are these parameters matching up to the back tests? Is the win-loss ratio similar is the you know, average winter average law similar is the average trade duration? Is it similar in forward testing as it is in back testing, because the more you can match these two up, the greater probability you have of having a winning system moving forward into the future so for testing? Obviously, you can start forward testing with the demo account before going into live accounts. Let’s start with a smaller account and then, as you gain more confidence, you can obviously deposit more and more money, so forward testing. The third thing is risk management. Now this is extremely important about how does your system actually manage risk now?
There’s a lot of trading systems out there, a lot of EA’s or auto traders out there that are complete garbage when it comes to money management and how it manages risk and you want to be looking at.
Does it follow good, proper risk management rules? Isn’t, risking, you know like half a percent or 1 percent or 2 percent of your account, and the other thing that you want to make sure you look for is there’s a lot of martingale bots that are out there and the vast vast vast majority. 99.9 percent of them are complete, crap and you’re gonna blow your account at some time. So that’s one thing that you want to look out, for it is it’s tacking continuous positions on top of each other when it’s in a losing trade and that’s just a recipe for disaster in a lot of the cases. So you want to be careful about that main thing here. Is you want to make sure that it manages risk properly that it doesn’t? You know, get to risk here through County. You can look at the max drawdown statistic again to get a better idea of that. Okay, number four: this is really important. Is the actual company? That’s selling you, the e, a couple of things that you want to look for is number one: do they have active development? Is there people that are actually trying to improve the system month after month? These are people that are looking at it statistically and trying to that. I’M just buying off some random crappy blog article or something free that you downloaded from the internet, which would be, I don’t think, intelligence, so active development, because training systems change over time and the market changes over time. So the better you can continue to develop a system, the better it can do in the future. The second thing that you should be looking for inside of the company – that’s selling.
You should look for when choosing a trading robot is social proof. Okay, can you find a community of people that are using this successfully that have great results and obviously the more that you know, people that are using it?
Obviously, the more confidence you’ll have in actually choosing to use that trading system. Okay, so that’s one through five. Those are five things that you can look at when trying to discover what should be your next trading system or if you should actually use an auto trader or actually not use it, because 99.9 % of the ones are complete crap out there again, I’m biased. I think that we have the best trading systems and the best auto traders and Forex robots that are out there.
TRY RED FOX EA :
Red Fox EA is designed for traders who would like to have low drawdown and steady growth on their profits. Its has both a low drawdown and aggressive setting which users can select from.
Below 9% drawdown per pair with low drawdown setting – All pairs overall drawdown below 18%
Below 15% Drawdown per pair for aggressive setting – All pairs overall drawdown below 38%
10% to 28% Monthly profit on low drawdown setting
17% to 48% Monthly profit on aggressive setting
manual lot size each 1000 0.01 lot
News Filter – To avoid trading on big market event days
Smart inner indicators to analyze the market before placing a trade
Fully Automatic – Install in 5 minutes and the rest is fully automatic
100% Non Martingale Strategy
Spread control – to avoid trading in volatile market
1 demo 1 live license key per order
Full Setup guide PDF