Automated Forex Robot trading System: Basic Key Factors To consider Before Starting - Part 2

Factor 2 – Money Management

This is one of the key principles in foreign exchange trading. Even as a forex trader that trades manually without using automatic means of trading, i.e using expert advisor, forex trading robot or whatever name you call them will loose his shirts if he does not handle the issue of money management very well.

Each automated forex trading system has its own money management. Some will open and close positions base on a particular percentage of the available balance in trading account while some don’t take this into consideration. They enter and exit trades as long as market condition suits them. One thing to know is that there is advantage and disadvantage of money management of every currency trading software. It is advised that one should understand this aspect of his proposed expert advisor before using on forex real trading account.

Factor 3- Risk Management

Life is a risk as it is said. Automated forex trading system is not an exception in this. The level of risk exposure of forex automated trading software varies. Some systems are programmed to be risk taker while some are risk aversive, that’s why the idea of stop loss was introduced in currency trading. Some trading robots incorporate stop loss in their actions by using close, long or trailing stop losses while many automatic systems out there don’t belief in stop loss.

Explained so far are those factors to be considered before adopting automated style of currency trading. There are other factors though, but these are the suggested ones to look.

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