Forex Education

There are a large amount of Forex expert advisors online today, in reality masses of them. It virtually makes it very difficult to spot the expert advisors that essentially work. With so many choices and such a big amount of different Foreign exchange robots trading on multiple currency pairs there needs to be an answer to identifying the right trading robot.

 

The first thing one must ask themselves when looking out for a quality Forex expert advisor is, what sort of past performance will the trading robot have? What sort of trading accuracy are we dealing and which currency pairs will the trading robot trade on?

 

The worst mistake that most expert advisors make is attempting to offer a solution or mathematical formula that works for each currency pair. It’s simply not feasible to have a Currency exchange robot be an expert on each currency pair thanks to the fact that each pair has it’s own patterns and daily ranges. So when identifying a trading robot one of the first things we look for is an expert advisor that concentrates on only one currency. Secondly we investigate it’s previous performance over the last 5 years. If the trading robot has performed well with minimal draw down and has sustained profitable months, than we are halfway there.

 

Next, we research the Foreign exchange robots cash management. We have to ask ourselves, what was the maximum drawdown over the past five years? Anything with less than thirty percent draw down over the past five years is a definite positive. Another question we’d ask ourselves is, will the trading system employ a stop loss? Some trading systems will not employ a stop loss and agree with it not can be extraordinarily profitable. A system that doesn’t employ a stop loss has to have a trading accuracy of eighty percent or higher where the winners obviously out weight the losers by over half re dollars.

 

Finally, work out how much risk you are prepared to take. Trading with an expert advisor or any system at that matter does need a little bit of risk, yet if handled correctly can be extremely profitable. Never use a trading robot without first testing it in a demo account. Only after the trading robot is able to sustain profits after a quarter should one think about using the trading system in a live account. Be certain to find a system which has a very high success rate, uses correct cash management and has been entirely back tested and you’ll be sure to end up a winner.

 

Profits Run - Forex Time Machine

Why are such a lot of forex traders NOT succeeding?

 

I had an opportunity to chat with Bill Poulos today and posed that question to him. Do you know what he said?

 

‘most experienced forex traders wait too long to move stops to guard their positions and often watch their profits disappear.’

 

And that wasn’t all — he went on to explain a straightforward idea, similar to Gambler’s Ruin that permeates the forex trading world.

 

Basically, once a trader sees profit in a trade begin evaporating they get solely focused on getting back the lost profits. They forget to understand the need to protect the profits that they have in the trade. The result? A reversal continues, the once-profitable trade becomes a loss-making trade and the trader’s frustration mounts.

 

I have seen this myself and it is the easiest trap to fall into, because you persuade yourself that the Euro just hit that intra-day high and it can get back up there! Except - it doesn’t and it continues to drag back until your 20 or 30 pip gain turns into a twenty or 30 pip loss.

 

that could be a pretty serious example - but have you had that happen to you?

 

What do you do?

 

Bill had an answer for that, too!

 

he revealed most traders have no idea what the available profit potential is for any single trading event — that is, they do not set profit targets which allow them to take what the market gives them and then exit the trade in multiple steps. And, without a strategy that protects capital first and manages profits second, there isn’t any way the average forex trader can survive in the foreign foreign exchange markets.

 

to position yourself correctly, traders MUST have a multi-part technique — one that teaches them the way to identify the BEST available trades, obviously sets out a profit target, helps manage the taking of those profits and from the outset, teaches traders how to protect their dear capital!

 

He calls this handling risk first, taking profits second - and it’s actually groundbreaking thinking.

 

Watch the first part of his new, free video series on this right here [*CO].

Forex Time Machine by Bill Poulos

 

By learning to control risk FIRST, traders will find their trading transformed as they may be able to approach forex trading with a completely different mind-set, a plan for erasing risk and a solid set of rules by which to trade.