Avoiding the dangers of trading with Forex Robots.

Avoiding the dangers of trading with

 Forex Robots

Before buying a Forex robot, you should be very well informed about various disadvantages and not just get excited promises to become a millionaire overnight . The opportunity to enjoy with Forex robots is definitely there , but it must first be aware of the dangers to be well informed and thus make a better decision .

Grid , cover, and cumulative Martingale

Knowledge in technical analysis does not seem to stifle the designers of forex robots.

Indeed, it speaks more coverage , matrix, pyramid and martingale as indicators .

The cover is made ​​to open a short position when there is a long , to win when the market will head in the wrong direction . It is expected that one of the two positions will end with a victory. So we ended up keeping positions for weeks hoping they become winners.

Matrices and grids are techniques that include opening / closing positions every 10 , 20 or 50 pips . The danger is that when the market moves a lot , the robot must be fast enough to open or close all vulnerable positions.

For example , I knew a robot that uses a trading system of the grid. The idea was that we defined a grid order to move 20 pips .

For example N is open to a position of one lot .

To n + 20 is closed with a gain of 20 . No problem. This situation is exacerbated if 20 is not fulfilled.

If it falls below n, the position is reversed by opening a position short of 3 batches .

If the level n - 20 is not reached and it is on n, we bought six lots.

If it drops below n or sells 12 lots , etc. whenever the number of units purchased or sold , double.

Grid Trading System - Number of Lots

We quickly reached 190 batches in all. As the gap is 1 pip , we already have 190 pips with negative spread . Beware : if the difference is greater !

Assuming that the robot can not close positions during sudden market fluctuations, we can certainly see the dangers that entails !

Cumulative average and accumulate lower position or if we win or lose .

Martingales are techniques similar to those card games that consist of double or even triple your positions when you do not win . In this way, you can reach quickly to important positions in the world.