| A trader who adopts a single method or style of | | | | reversals. |
| trading the Forex market could be likened to a | | | | A Forex robot with only two alternatives such as |
| golfer who uses only a single golf club to play all | | | | trending and a scalping option would still be far |
| shots. The same can be said for many of the | | | | better that only a trender or a scalper alone. As |
| automatic trading tools that can have been | | | | Forex robots become more sophisticated we can |
| programmed to play in just one kind of market. | | | | expect to see many more alternatives built into |
| Some of the newer so called multi market trading | | | | their code and they will start to approach artificial |
| systems are suggesting that there are only two | | | | intelligence. In the meanwhile we should be relived |
| or three ways in which the market can move and | | | | that Forex robots have some adaptive capability |
| therefore you only need two or three additional | | | | as a risk management tools to avoid huge |
| competent to a Forex robot to cover all | | | | account drawdowns. |
| eventualities. In actual fact there are probably | | | | No automatic trading software will perfectly |
| many more that this, but in any event Forex | | | | predict market behavior, so even the |
| robots that are able to adjust to more than a | | | | multi-market Forex robots have their flaws. They |
| singe price pattern will inevitably better than any | | | | are however more dynamic than their |
| mono market trading machine. | | | | predecessors and we can expect them to |
| What an adaptive Forex robot gives you is a | | | | outperform their single market rivals. They |
| diversified way of attacking the Forex market. So | | | | process more data than the earlier robots which |
| when the market for a Forex pair is strongly | | | | should hopeful generate more reliable trading signal |
| trending in one direction, you will want a robot | | | | over time. |
| that is geared to picking a signal early in a | | | | A trader who adopts a single method or style of |
| potential trend and then lets the price until a | | | | trading the Forex market could be liken to a |
| reversal is detected so as to capture as many | | | | golfer who uses only a single gold club to play all |
| pips as possible. Letting robot designed for a | | | | shots. The same can be said for many of the |
| trending market lose on a spiky market with | | | | automatic trading tools that can have been |
| many small rises and falls within a narrow band | | | | programmed to play in just one kind of market. |
| would be disastrous. The Robot would think it | | | | Some of the newer so called multi market trading |
| picked a trend only to be stopped out time and | | | | systems are suggesting that there are only two |
| time again, eroding the account equity. | | | | or three ways in which the market can move and |
| A volatile market trading in a band or envelope | | | | therefore you only need two or three additional |
| requires a very difference approach. Normally a | | | | competent to a Forex robot to cover all |
| scalping strategy would work well in this kind of | | | | eventualities. In actual fact there are probably |
| market where the signal is finely tuned to pick up | | | | many more that this, but in any event Forex |
| only a few pips at a time. Again a scalping robot | | | | robots that are able to adjust to more than a |
| not is appropriate in a strongly trending market as | | | | singe price pattern will inevitably better than any |
| it would misread the signals expecting rapid | | | | mono market trading machine. |