(ii) Forex Robots (Expert Advisors)
What is a Forex Robot?
A Forex Robot (or else an Expert Advisor) is a piece of software that plugs in a
Trading Platform in order to trade Forex automatically. These systems are usually
running on Metatrader4. If you want to trade using a Forex Robot you need top
technology and probably a VPS hosting service (explained later).
The Criteria When Choosing a Forex Robot
A Forex Robot is designed to perform a very difficult task so there are many
parameters defining your best choice. Here are some important factors that must be
taken into consideration:
(1) Past Performance of the Robot
(2) Who is the Developer?
(3) What is the average frequency of trading?
(4) Is there any Money Management Mechanism (spread and slippage control etc.)
(5) What is the Price of this system? Can I use it in more than one Live Account?
(6) Does my broker allow the use of a Forex Robot? (usually ECN /STP brokers allow
trading via the use of Forex robots)
(7) Is my broker suitable for automated trading? (spreads, execution speed etc)
(8) Will I need a VPS hosting service? (probably the answer is yes)
Furthermore:
(9) Test always any system in a demo account before using it in a real trading
account.
(10) Never mix the use of a Forex robot with other trading activity, it may confuse
the robot’s Money-Management System
Forex Guide v K