Many traders think of Forex market as an easy pie. They have got the automated trading software and they can make a profit at any time in the market. They need to log in to their trading platform, use the automated trading software and will make a profit. In other words, the bots of Forex or this intelligent software will do the work for them. Trading in Forex needs human touch and it is risky if you depend on your trading software. But not many traders trade the market full time and for them, automated trading software is really a blessing.
In this article, we are not going to tell you that you should not use Forex bots in your trading. We are going to tell you how you can test your bots before you use them in the real account. Your real account has real money in the market and if you lose money from that account, it is not possible to recover your money. It is better to test the bots before using them in live accounts. You might buy the most expensive trading bots in the world but without testing those in a demo account you just placing your money in front of the fire. In Singapore, there are many advanced traders using the trading bots but all of them have back tested the software in demo account. Nothing is perfect in this human world. Similarly, when it comes to forex trading you can never really avoid the losing trades despite doing all the hard work. So you should also keep money management in your mind to save your hard earned money.
Test with a historical record
The Forex market has a record of the entire past trend in the market. If you want to use Forex bots in your trading strategy, first use that but in a historical record of the market data. If you find the relevance of the bots outcome with the historical record, you can think of using that Forex bot. If the result is not what you expected or it does not calculate the expected market trend, try trading software. Some of the traders often use the forex simulator to test their bot performance. But unlike the experienced traders, the new retail trader’s jumps into the real trading world with their expensive bot. Some of them might get lucky and start making money but this not at all wide decision. Will you drive a car if you are not sure that its engine and brake functionality is perfect? Similarly, you need to know whether your trading bot is capable of generating profit in different market conditions. So without testing it your trading platform, you should never use it with in your live trading.
Use in demo accounts first
After you have selected your bots for trading, do not go for taking it in your real account. You need to make sure the bots can perform precisely in a live market signal. The trading software maker can preinstall the trading record of the past Forex analysis in the program and may be that is the reason why it performed so well in the historical record analysis. You do not know if it will produce the same result in Forex and that is why traders need to use Forex bots in the demo accounts first. These accounts are all equipped with a live signal like the live account and you can know for certain if the trading software you have chosen will work or not.
Summary: Everything in this world needs to be tested before it can start to perform its duty. When you purchase a forex bot you should use it in demo account and check whether you bot is capable of making a profit or not. If everything turns out fine then plug it into your real trading account.