automated forex robot

Forex Robots – Good Idea?

Any trader would find it tempting to send an infallible Forex robot out into the market to do their own work for them. But is it really a good idea to do so? If you read enough reviews you’ll always find some trader telling tragic tells of how he lost all his money because of an automated trading robot. No FX robot review is complete without this tale of woe, and these should serve as a warning to all traders thinking about getting an automatic trading system – even though these may work most of the time it only takes one miss to lose all your money.
We’ve scoured the internet looking for such stories to bring you these cautionary tales.

Robot Betrayal

We found this story in a forum discussion about automatic trading robots. This trader had purchased an auto trading system that guaranteed winning trades and no loss on his investment. We won’t mention the name of the software but we will say that it was one of the top 10 rated currency trading robot online according to numerous robots reviews. The trader had set the robot’s systems on independent trade mode and for about a week or so the robot was indeed making profits though they weren’t much to speak of. Then one morning the trader woke up to find that his entire investment had evaporated overnight. What had happened was that the robot’s currency rate update system had begun to lag behind due to technical reasons and the automatic trader continued trading with the wrong rates, and losing all of the trader’s money in the process. The Forex robot company admitted the fault but the trader was not reimbursed due to the company’s policy.

Robot Misunderstanding

A lot of times the automatic trading robots can be very complicated to set up. These systems are customized by the traders and if they don’t exactly understand the way the software works they end up losing a lot of money. The trader in this story bought top rated championship winning robot trading software with custom trading strategy. Not willing to take any risks, the trader customized the settings of the robot to very conservative strategy and left it to trade for a day while he was at work. When he came back home to check his trading balance he saw that he had half the amount he started with. Once he had checked the robot’s trading history he realized that because he did not bother to customize the robot’s take profit orders, the program had closed all trades as soon as they were opened, losing his money on spreads little by little. Let this be a warning to you that if you do decide to trade with a robot you should read the instructions extremely carefully and not leave your robot to make independent trades without monitoring its trading activity and flow charts at least for the first few days.

The Social Trading Alternative

All in all, one should be wary of robots and automated trading systems. They are usually quite costly and as we’ve shown above can end up costing you even more in Forex losses. Since no machine can outwit the human mind,  the eToro OpenBook presents you with the opportunity to replace the robotic automated trading system with one based on human made trading decision. Through the use of OpenBook’s groundbreaking CopyTrader feature, you can have real live expert traders trading for you, and unlike automatic Forex robots, it won’t cost you a cent. All you have to do is use the Guru Finder feature to find profitable traders whose style suits your own, decide on the portion of your account you want to dedicate on copying them, and you’re off. What’s more, unlike FX robots, copy trading enables you to retain full control and transparency over your account. You can always change the parameters of a copied trade, close a trade you don’t like, or stop copying a trader all together. With all the power of expert trading skill and control over your own funds, copy trading really is the best of both worlds.

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