The use of the forex robot has grown in popularity since the release of MetaTrader 4 trading platform. The challenge is finding an expert advisor that is reliable among the many available and the many scams. To get an advisor that suits your trading style; you need to know what to look for.
At times even with a robot that seems to deliver good figures you might end up losing all your cash. Before you get a robot to work on the trading account you need to know the risk you can be able to afford to take. Note the robots that bring in more profit are also the ones that are most risky. You should first check the robot with a demo account before you start using it. Here are some pointers to use when selecting robot expert advisor.
The Expert advisor robot should be tested
Start by finding one that has been tested. Choose one that has been tested by an independent website. There are some markets that are not suitable to trade using the robots. To obtain the best results; then it is not enough to get a good site. The other option is you should follow the way the robot works and change the settings to fit the market. You need to note that without overseeing the advisor then you might end up incurring losses.
The profit factor
When you are choosing an advisor, you need to look into the statistics. The statistics will aid you to find out if the robot will make you profit. The profit factor will show you the relationship found between the gains and the risk.
Expectancy on each trad
Find out what you are going to make in each transaction. The statistics you get will be based on the sale you will be making. Though they do not guarantee the future result it can be a useful tool when you are getting a robot.
Even if you get a robot that makes a profit with too much risk on each trade, it is not good. The purpose of the drawdown is to understand the hazards. You can be able to use it to calculate the risk between the high gain and losses. When you do this, you will get a rough idea on how the robot might be able to drop. Get an advisor with a smooth equity curve.
The ration of the risk and reward
When you look at the risk-reward ratio, then you will be able to understand the robots appetite for risk. The risk reward ratio will help you be able to tell the rate of profitability. This is one of the ways to determine if this is the proper robot for you.