| Forex robots might seem like a fantasy, a sham or a | | | | loss" cap that prevents you from losing any significant |
| "pipe dream"" at first glance, being that it promises to | | | | amount on any given trade. |
| make money for you on autopilot -- But what people | | | | It is important that you ONLY use a forex robot that |
| don't realize is the complex mathematics and | | | | has a "stop loss" mechanism, otherwise there is no limit |
| algorithms that are involved. There are a few different | | | | on the amount of money that the robot can 'lose' for |
| methods or strategies that forex trading robots use to | | | | you. Not all programs have this feature and it's crucial |
| make a profit and if they are implemented correctly, | | | | that is does if you want to make any money trading |
| they DO make money (sometimes A LOT) for the | | | | forex online. Basically, the program uses complex |
| people who use them. | | | | mathematics and algorithms to make a certain number |
| There are two main strategies that forex robots will | | | | of profitable trades, while putting a cap on the amount |
| use and it is up to the user which one they want to | | | | of money that is 'allowed' to be lost (in the event that |
| implement. One of them is called the long term trading | | | | the robot makes a losing trade). |
| strategy, which can potentially be the most profitable | | | | With the stop loss mechanism, in the end your gains |
| but it also carries the most risk. The other main | | | | will be greater than your losses, making this a profitable |
| strategy is the short term trading strategy, which does | | | | business for you. |
| smaller (but PROFITABLE) trades and has a "stop | | | | |