So how can this be avoided? The answer is simple: automated trading systems, also known as a Forex bot, or robot. These Forex bots can be programmed to recognize patterns, and trade accordingly. And, unlike a human trader, there is no emotion, fear, or greed involved. You set up the robot with your Forex strategy, and walk away.Many traders are skeptical that a Forex robot can trade any better than they can. After all, a robot can't «see» a symmetric triangle, or a head-and-shoulders pattern. So how can the robot be a good trader? The answer is very simple. Remember, no matter how complex a chart you're used to looking at, behind that chart is just a series of numbers, nothing more, and nothing less. And ANY computer can crunch numbers and recognize patterns… therefore, any well-written piece of software can execute Forex trading strategies.
Forex Market Sentiment Indicator
Now, this doesn't mean that a trader can just «set it and forget it.» A Forex robot is only as good as the strategy the trader gives it. The best Forex robots allow traders to choose from a number of common strategies, tailor-made to fit the trader's risk tolerance. This is why the trader must have at least a basic understanding of simple Forex strategies before investing in a robot. If you give the robot a bad strategy, it will execute a bad strategy, and cost you money.