Avoiding The Dangers of Trading With Forex Robots

Before buying a Forex robot must be aware of the different problems and not only excited about the promise of becoming a millionaire overnight. The ability to take advantage of Forex robots is definitely there, but it must first be aware of the dangers to be informed and thus make a better decision.coverage of the grid, and pyramidal Martingale

Knowledge in technical analysis does not seem to hinder the designers of forex robots.

In fact, he speaks more coverage matrix martingale pyramid on indicators.

The cover is made to open a short position when it comes time to win when the market will goes in the wrong direction. It is expected that one two position will end with a victory. So we ended occupying positions week in the hope of becoming winners.

Matrices and grids are techniques that include opening / closing positions every 10, 20 or 50 pips. The danger is that when the market moves a lot, the robot must be fast enough to open or close all vulnerable positions.

For example, I met a robot that uses a trading system on the network. The idea was that we defined a grid order 20 pips move.

For example N is open in a position of a batch.

In the n + 20, which is closed with a gain of 20. No problem. This situation is exacerbated if 20 is not fulfilled.

If n is less, the situation is reversed with the opening of a short position in three batches.

If the level of n - 20 is not reached and becomes n, bought six lots.

If it falls below 12 lots sold not, etc. whenever the number of units purchased or sold, double.

Trading Grid System - Number of Lots

We quickly 190 lots in total. While the difference is one point, we already have 190 pips negative diffusion. If the difference is greater: Beware!

Presuming that the robot cannot close positions during sharp market fluctuations, we can certainly see the dangers that entails!

Pyramid and a half to accumulate mail, if you are winning or loosing.

Martingales are similar techniques of card games that consist of double or even triple their positions when they are earned. In this way, you can get very quickly to important positions in the world.

Unfortunately, vendors and developers of robots ever to share information with you that your goal is to sell its software and therefore generate profits. The purchase of these programs for trading on autopilot may seem very tempting, however, it must be very careful to make the right decision and generate profits instead of losses.