With the advance of technology, it is now possible to trade the Forex market automatically. This is possible through the use of automated robots and systems that execute trades on behalf of a trader when a certain set criteria are achieved. A Forex robot is a program that strictly uses technical signals to execute trades in the trading platform without the direct intervention of the trader.
Although automated robots are a good way of navigating the Forex market, they have several pitfalls. The Forex market is very dynamic in nature; that is, the market conditions change on a constant basis. Therefore, since robots basically trade on a certain set of pre-wired conditions, they are not able to cope with the ever-changing conditions present in the Forex market.
A majority of the robots available out there are not programmed for all environments or are not able to recognize drastic changes in the market conditions. Therefore, they are prone at making losses, which can be enormous if not properly watched or managed.
Because of the advantages of trading using robots, scammers sometimes dig around these to give false claims to ill-advised traders. For example, a flashy advert can claim that a robot being sold at $30 is able to make 200-500 pips per day. While this is not impossible, you should be careful about such claims. If the robot is able to make such a huge number of pips per day, why cant the owner simply trade using it and make lots of money instead of trying to sell it to other traders?
It is important to note that in the world of Forex trading, there is no such thing as a consistent market, and past results are usually not indicative of future results. Conditions of the Forex market change on a constant basis. This means that results realized yesterday may not be the same results realized today. And, some of these scammers make up the results of their trades to convince traders to purchase their products. When the deal is too good, wont you think twice?
The most appropriate thing to do is to stay away from automated systems and robots until you have thoroughly fine-tuned your skills in trading. Beginners usually do not know anything on how the Forex market operates. Therefore, it is best to become a master trader before allowing automated robots and systems to do it for you.