What You Should Always Take Care Of When Dealing With Automated FX Trading Software

 

Automation is in the world of currency forex online trading truly the lazy mans way of trading the forex. And it’s a very clever thing to do it this way. Why? This way you are able to beat your biggest conqueror, You!

 

 

But be careful, after 6 years of FX Online Trading, I’ve been probably through all the pitfalls that this industry has to offer, which was sometimes a very hard lesson to learn. And if you don’t want to experience all this trial and error yourself? What are the key factors that make the difference between the 5% (or even less…) that make those nice profits month after month and the other 95% who are struggling and burn account after account?

To make a long story short, there are some key factors which are absolutely crucial to your success and surviving in the sea of sharks (Brokers, Institutional Traders, Banks, Advertisers and most important: You!) with online forex exchange trading or simple, FX. So here they are:

How to become a successfully currency forex online trading expert

The 5 basic rules

1. Never trade with money you can not afford to loose. Never!

2. Do not have more than 3% of your current account balance at risk. Make sure you have always a Stop/Loss in place that takes care of this. Crucial!

3. You have to begin with demo trading first. One month is an abolute minimum for this (the majority of automated FX.)

4. Only switch to real or live trading after a minimum of one month profitable trading (should be at least 20 trades, the more, the better).

5. After finding a profitable FX Trading Software, always take portions of the newly earned capital out of the account and let the rest accumulate. A good rule of thumb is to take a minimum of 1/3 out and make yourself a nice little surprise .

Starting by simply following these basics, you have the right foundation to be successful in fx online trading. If you only follow these simple rules you are well ahead of so many others and on your way to the Top 5% who are making serious money with fx online trading.

How to find a profitable FX Software?

That’s no easy thing to achieve. Normally you have to test dozens of systems to find one that is really profitable. Don’t get me wrong on this one. The majority of system developers will tell you that their system is able to make you very rich, but normally that is more a fantasy than a fact. To be perfectly clear here, the majority (97%) of those automated FX online trading systems will loose money. They are not worth the time, money and effort you put into them to get them set up.

The majority of the automated FX Trading Software Systems are working based on the Metatrader 4 Platform. Inside the Platform those Forex robots are called Expert Advisors or short EA’s. EA’s are simply some piece of Software that tell the MT4 Platform when to trade, which currency pair and how to trade it.

Just google it out on the internet. So I will come straight to the point to make sure that you will not get overwhelmed with too much informations. That beeing said, I will go straight to the point of interest:

5 Rules to find an automated FX Trading System that really works

1. Any advertising for an EA that only shows you so called “back test results” isn’t worth any closer look at. Because back test results are only good for programmers to get an idea if their system works or not.

2. You have to look for live testing or forward testing results.

3. You need to know what the real performance of the system is and therefore the system creator should provide real time trade statistics.

4. The robot should be easy to use with predefined settings with an integrated update service. To be honest with you, it’s absolutely key for you to have a system in place that does not need any further optimization from your side.

5. And finally: A Money-Back-Guarantee for the Trading Robot.

And that’s it. If you only follow these guidelines, your way to the top of the fx traders is well planned.