Forex ROBOTS – Automated Forex Trading Machines
During the financial meltdown of Wall Street and Stock Markets around the world many investors found an alternative in the Forex market. Unlike other financial markets the Forex market literally cannot crash. meta trader 5 This is due to the fact that in the Forex market one invests in a currency’s value relatively to another currency.. In fact, the instability that the global crisis introduced into the market has in a way been a positive thing for the Forex Market. Volatility in the Forex market, despite perhaps making it more risky, also provides greater opportunities for profit. The sharper the swings the currencies go through against each other, the more Forex traders stand to profit. Ivyrobot has been designed to capture profit from Forex market volatility.
Because this volatility makes the trades riskier, Forex dealers developed tools to reduce their risk. Even before the share markets devastation computer geeks had been designing automated trading robots for all different markets. The financial instabilities merely accelerated the need for super robots to process reams of market data as in highly volatile securities markets transactions in every type of financial instrument produce huge volumes of trading data that form the basis for neural network models to forecast everything from interest rates to the movement of equity indices and even individual stocks. The many influences on institutional and individual investors can never be quantified in a closed form algorithm, yet empirical models derived from the data consistently outperform human traders and portfolio managers.
This is where Forex automated trading robots excel. Although there are vast amounts of data to process the number of variables needed in Forex market modeling is far less than in stock markets – where there are thousands of different stocks. In Forex markets just confining the calculations to the major currencies restricts the number of currency pairs to only six. Thus Forex modeling was embraced rapidly by the quants such as the IvyRobot boys.
Following the tremendous success of two phenomenal Forex Robots both in trading and in sales to traders a slew of Robot lookalikes have sprung up. Despite the competition two machine traders are still well ahead of the pack. If you are wondering which are the Robots being referred to – they are the IvyRobot (FxIvybot) and MegadroidFx.
Apparently demand for the various automated Forex trading robots is enormous and some producers have decided to limit their stocks. The designers of the newest robot to take the trading community by storm have recognised this too and have already announced that they will soon hike the price of their popular Forex Robot.
Possibly this is a neat marketing ploy though as there is now a new batch of updated artificial troops about to descend on the Forex markets almost daily – so a bit of hype about limited stocks and previous model sellout certainly will not hurt sales of the new trading machines. Still at the prices they are being retailed it seems worth grabbing at least one or two to assist you trade. Who knows with the development of artificial intelligence with application to Forex markets the robots might take it upon themselves to open their own banks. If only they had done that before the bank fiasco of recent years!
Most professional Forex traders have acquired several Forex robots. One of the earlier FX Robots they embraced – which was based on trading the Asian market times – stopped trading when London and the US trading sessions were open. It was not based so much on volatility but more on catching trends. Initially it performed extremely well but once the Forex brokers figured out its Achilles heel they almost beat it to death. (More about that too in another review).
Beware of unproven trading robots – whose claim to fame is solely based on back-testing. A Forex trading robot that made money in a back test a few months ago probably will not work today. This is where the current top robot is different – and it excels at the coal face – real live trading results prove so. As markets constantly change theRoBot is intuitive enough to recognize not only major shifts in market patterns, but minor ones too!
Manual traders simply cannot compete successfully against a trading robot in the number of calculations which are needed in determining trading probabilities and risk/ reward ratios. Also in terms of money management a fast moving automated Forex robot can quickly calculate the amount of capital to risk and determine stops and profit taking targets.
Despite these obvious advantages, some people still hesitate to employ the Forex trading machines – much like those who stayed with their horse and buggy when the automobile appeared. Over time the automated Forex trading robots will continue to evolve and become faster and more sophisticated. Imagine trying to trade these days without the use of a computer.?? – go a step further and you should also ask “imagine trying to compete in the Forex market without an automated computerized trading robot.