Test Before Broke - Testing Your Forex Robot

Careful examination of your forex robot through vigorous testing is utterly the optimal first step with a forex robot. Lurking in the internet are thousands of robots available on the Internet right now. As a guess, I'd say that a vast majority of these don't even work anywhere near what the marketing advertises. A lot of them are designed to make money for the creator and and not the investor. It's forever awful to read about a rookie falling for one of these bogus robots. They could have simply done a little investigation on Forex robots. This would have saved them a hefty chunk of change. Instead, they foolishly set up the robot on a real Forex account. But what should they at done?

Each time I try a new robot that I want to test, I will simply install it on a demo account. What is a demo account? A demo account is a trial account that uses faux or virtual money instead requiring real money. Now, there are 2 distinct methods to examine your Forex robot. One method is to put the robot through a strategy tester. The strategy tester uses historic charts and runs the robot's strategy against the chart. The results give a summary report on items including how many bars were simulated, how many profitable trades the robot found, as well as unprofitable transactions. It also gives you a graph that judges profit margin.

Another way to test the robot is by setting up on a real demo account. Setting the robot all up on a live demo account will give you a feel on how the robot operates on a an account with real money at stake. It will trade just as it would on the real account. Running a robot through the examinations will assure that you have a fully functioning automatized Forex trading robot. But most significantly these trials allow us robot traders to modify our robots so that they will run as profitably as it possibly can. Sometimes robots must be tweaked to run a lucrative campaign or session. For Forex, profitable trades are the end objective.

Do you really need to test your robot?

Ideally you have enough good sense to always screen anything Forex long before you try doing it with real money. I know that may seem like the self-evident thing to do considering as you can instantly lose everything in a single bad trade. But I still see numerous investors that think that the robots will automatically be setup and working right out of the box. They will purchase it and set it up on a live account prior to even testing it out any. You might as well going on a suicide mission in the Forex world. I constantly check and recheck my robots daily to verify that they're running at optimun performance. This allows me to rest easy in believing that my robot is making informed conclusions while I'm away. I have enough assurance in my robots to let them run all day every day. They constantly pump out lucrative trade's again and again. Disregarding what the current market is like. This is why I constantly examine my robots before I let them run wild.

By: Johnathan Anders

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Johnathan Anders has traded the Forex market for nearly ten years. He has investigated and reviewed some of the best, and worst automated systems on the market. See his blog at Forex Tools Asia and the latest bot review of Ivy Bot Review (IvyBot)