Forex Robot
Trading - How does it Work?
Firstly, the article would indicate that my initial comment
on "How" would be to enter into a lengthy technical discussion.
This would be in error, although a lengthy
technical description could ensue.
My evaluation of the various good and
sustainable Forex Robots in the marketplace is that they work by
being extremely Conservative.
Of course, the question is raised that if
they are so Conservative, how can they trade Forex which on the
face of it does not lend itself to a Conservative manner.
Let me elaborate, what the Robot does is
look for the ideal condition when the “Odds” are stacked in its
favour. Acknowledged that this is a gambling terminology, which
I am not forwarding as to have anything to do with Forex trader,
but I assume that the term “Odds” is understood here in its
theoretical interpretation.
The Robot looks for the highest degree of
profitability, when the markets are quiet,, when the spreads are
minimized, when the indicators are all favouring the trade.
Ok, we are now starting to get a little
technical here.
When the Robot does in an admirable manner
is evaluate all the data being presented, takes various
technical indicators and formulates them into an ideal set up.
Could a human do
this?
Yes, a human could do this if they were
willing to focus on the screen for 24 hours a day, and remain
able to make the rational and knowledgeable decision when it
appears , which could be in 1 hour, 4 hours, 24 hours time.
What I am inferring here is the Robot is
the reflection of a human’s evaluation of trading, but the Robot
does not look away at the wrong moment, get distracted, have
blurry eyes. It is able to make the split second decision
without bias or emotion based on technical facts and criteria
presented.
So , how does it work, it evaluates
technical inputs presented to it, it quantifies these without
the absolute minimal risk of a loss.
Of course it sometimes gets it wrong, but
the majority of times it will make the right “Call” and a
profitable trade will eventuate.
We , as humans and as experienced traders
know that this is the correct method, although as Humans we make
incorrect decisions due to a hunch, need for action etc.
The Forex Robot cannot do this, it has no
emotion, and hence it will trade better than we will ultimately
in the long run.
