John R Harker asked:
A trader who adopts a single method or style of trading the Forex market could be likened to a golfer who uses only a single golf club to play all shots. The same can be said for many of the automatic trading tools that can have been programmed to play in just one kind of market. Some of the newer so called multi market trading systems are suggesting that there are only two or three ways in which the market can move and therefore you only need two or three additional competent to a Forex robot to cover all eventualities. In actual fact there are probably many more that this, but in any event Forex robots that are able to adjust to more than a singe price pattern will inevitably better than any mono market trading machine.
What an adaptive Forex robot gives you is a diversified way of attacking the Forex market. So when the market for a Forex pair is strongly trending in one direction, you will want a robot that is geared to picking a signal early in a potential trend and then lets the price until a reversal is detected so as to capture as many pips as possible. Letting robot designed for a trending market lose on a spiky market with many small rises and falls within a narrow band would be disastrous. The Robot would think it picked a trend only to be stopped out time and time again, eroding the account equity.
A volatile market trading in a band or envelope requires a very difference approach. Normally a scalping strategy would work well in this kind of market where the signal is finely tuned to pick up only a few pips at a time. Again a scalping robot not is appropriate in a strongly trending market as it would misread the signals expecting rapid reversals.
A Forex robot with only two alternatives such as trending and a scalping option would still be far better that only a trender or a scalper alone. As Forex robots become more sophisticated we can expect to see many more alternatives built into their code and they will start to approach artificial intelligence. In the meanwhile we should be relived that Forex robots have some adaptive capability as a risk management tools to avoid huge account drawdowns.
No automatic trading software will perfectly predict market behavior, so even the multi-market Forex robots have their flaws. They are however more dynamic than their predecessors and we can expect them to outperform their single market rivals. They process more data than the earlier robots which should hopeful generate more reliable trading signal over time.
A trader who adopts a single method or style of trading the Forex market could be liken to a golfer who uses only a single gold club to play all shots. The same can be said for many of the automatic trading tools that can have been programmed to play in just one kind of market. Some of the newer so called multi market trading systems are suggesting that there are only two or three ways in which the market can move and therefore you only need two or three additional competent to a Forex robot to cover all eventualities. In actual fact there are probably many more that this, but in any event Forex robots that are able to adjust to more than a singe price pattern will inevitably better than any mono market trading machine.
forex robot
A trader who adopts a single method or style of trading the Forex market could be likened to a golfer who uses only a single golf club to play all shots. The same can be said for many of the automatic trading tools that can have been programmed to play in just one kind of market. Some of the newer so called multi market trading systems are suggesting that there are only two or three ways in which the market can move and therefore you only need two or three additional competent to a Forex robot to cover all eventualities. In actual fact there are probably many more that this, but in any event Forex robots that are able to adjust to more than a singe price pattern will inevitably better than any mono market trading machine.
What an adaptive Forex robot gives you is a diversified way of attacking the Forex market. So when the market for a Forex pair is strongly trending in one direction, you will want a robot that is geared to picking a signal early in a potential trend and then lets the price until a reversal is detected so as to capture as many pips as possible. Letting robot designed for a trending market lose on a spiky market with many small rises and falls within a narrow band would be disastrous. The Robot would think it picked a trend only to be stopped out time and time again, eroding the account equity.
A volatile market trading in a band or envelope requires a very difference approach. Normally a scalping strategy would work well in this kind of market where the signal is finely tuned to pick up only a few pips at a time. Again a scalping robot not is appropriate in a strongly trending market as it would misread the signals expecting rapid reversals.
A Forex robot with only two alternatives such as trending and a scalping option would still be far better that only a trender or a scalper alone. As Forex robots become more sophisticated we can expect to see many more alternatives built into their code and they will start to approach artificial intelligence. In the meanwhile we should be relived that Forex robots have some adaptive capability as a risk management tools to avoid huge account drawdowns.
No automatic trading software will perfectly predict market behavior, so even the multi-market Forex robots have their flaws. They are however more dynamic than their predecessors and we can expect them to outperform their single market rivals. They process more data than the earlier robots which should hopeful generate more reliable trading signal over time.
A trader who adopts a single method or style of trading the Forex market could be liken to a golfer who uses only a single gold club to play all shots. The same can be said for many of the automatic trading tools that can have been programmed to play in just one kind of market. Some of the newer so called multi market trading systems are suggesting that there are only two or three ways in which the market can move and therefore you only need two or three additional competent to a Forex robot to cover all eventualities. In actual fact there are probably many more that this, but in any event Forex robots that are able to adjust to more than a singe price pattern will inevitably better than any mono market trading machine.
forex robot