Rules for working with dangerous advisors
Free Forex trading robots beckon beginner traders. Still would! First, “this is the sweet word Freebie.” Secondly, I pressed the button to launch the advisor – and sit, watch the growing deposit. And what is then the disappointment when, instead of the promised 100% per annum, the advisor “drains” the entire deposit.
Free Forex Trading Robots with Martingale
Recently, free Forex robots based on high-risk strategies are gaining popularity: Martingale, order grid construction, averaging, etc. All these strategies are based on the fact that sooner or later the price will turn in the right direction, returning to its equilibrium state. Their problem is one thing – they require a huge deposit reserve that can withstand a drawdown. It’s like with MMM: advisors with Martingale are able to bring many times more than ordinary robots, but sooner or later the pyramid will collapse.
Rules for working with “dangerous” trading advisors:
- Work only on cent accounts… Open the Martingale calculator and see how many losing trades in a row you need to allow, so that with $ 1. USA to reach 1000. Exit – cents. $ 100 The US is enough to withstand a large drawdown. But earnings will also be calculated in cents. The risk or moderate profit is up to you.
- Use maximum leverage… The maximum position volume affects the value of a point, and, accordingly, the allowable stop level. On cent accounts, these calculations can be neglected.
- Follow the recommendations to the advisor… They were not given in vain. Why learn from your mistakes when you can learn from others? It is logical that the market is volatile and the recommendations may be out of date. But it still makes sense to build on the already developed base.
- Check the Expert Advisor on the Tester… Someone else’s experience is good, but it’s worth double-checking. Run the Expert Advisor on a tester with the parameters that will be on a real account. Always keep the backtest statistics at your fingertips after starting on a real account, compare deviations.
- Continuously withdraw profit… No reinvestment. EAs with Martingale or grids will sooner or later “merge”. After you have withdrawn the amount equal to the deposit, you can breathe more calmly: the maximum that you will lose is only time.
- Monitor spread level and swaps… They can greatly affect the end result. Some brokers have swap-free accounts (not Islamic accounts), although these are rare. The spread is only floating.
- Use VPS server. If the Internet or electricity is turned off, the advisor will continue to work.
Any Expert Advisor (a free Forex trading robot or a paid trading system) should be understandable. You should know how he works, what his strengths and weaknesses are, at what moments he is most effective. Indeed, only in the hands of a professional the tool turns into a really serious weapon for earning money.