BEST FOREX ROBOT - Success at Auto-Trading

FOREX ROBOT

Introduction

Forex Trading Benefits

The Right Mindset

Forex Trading Benefits

Forex Robot Statistics - Part 1

Forex Trading Benefits

Forex Robot Statistics - Part 2

Forex Trading Benefits

Forex Robot Robustness

- What is a Forex Robot?

- Why use a Forex Robot?

- Key factor to look for in a   Forex robot

- Testing for Robustness

- Live VS Demo Testing

- What to look for in Broker

- Conclusion

forex robot

Forex Robot Drawdown Analysis - Part 1

forex robot

Forex Robot Drawdown Analysis - Part 2

forex robot

Drawdown Recovery

forex robot

The Emotions of Forex Robot Trading

Testing for Robustness

Now that we know that it's good to have a robust robot, we need to determine the best way to test for it. There are basically two types of testing when it comes to Forex robots: back testing and forward testing. Back-testing is testing out the robots success on historical data and forward testing is testing the robots success in real time. Both types of testing is essential to success.

As someone that purchases a robot you need to make sure that the robot was back tested and forward tested by the vendor. Also before you use the robot you need to run a back test in Metatrader. A good Forex broker can show you how to do this. Finally you should run the robot on a demo account to forward test it with play money. If any of these steps fail, you should reasses whether or not to take the robot any further. If things look good than you need to run the robot with a micro account to test and make sure that it works with real money, but only by trading micro lots so you are not risking a whole lot. That is one of the nice things about Forex is that you can trade very small or very big. Meaning you can get the experience of trading real live money without risking too much.

So the first place where you test for robustness is in your back test. Basically a back test will hold better value if it has at least 100 trades and covers at least 10000 data points on the chart. So if the robot trades on the hourly chart, for example, you need to test at least 10000 hours worth of data. If your back test shows a positive result, you want to make sure that it was done over a robust period of time. A robust period of time must include a down market, a sideways market and an up market. A quick way to do it is to pull up a chart of the time period you just tested. Now go to the frequency that is 1-2 intervals higher than where you conducted your test. So, for example, if your test was done on an hourly chart, look at the 4 hour chart or the daily. In order to make sure that the robot is robust you must see a clear up trend, a clear down trend and a clear sideways range-bound market on this chart. If you see this, than you can have better confidence that the robot will not give up a lot of its losses during the market type which it is not conducive to it. However, please keep in mind that past performance is not indicative of future results. In the markets anything can happen.

Key factor to look for in a Forex robot Important Player