Forex Robots: Why use 3 of them?

Phil Jarvie

How can I recommend 3 trading robots? Very easily.

Each "expert advisor" forex trading robot has coded into it the expertise of its vendor. The vendor will be a highly experienced and profitable forex trader with a wealth of experience behind him.

And there is no such thing as an expert trader in all markets and market conditions. So each expert advisor tends to have a different;

• strategy built into it
• a focus on different currency pairs and
• different time frames for execution of trades.

As such, each forex robot has its own twist, bent, slant, bias, or take on the market and the prevailing conditions.

Some are designed primarily for 1 or 2 types of currency pairs. Others are designed for very short term "scalping" strategies where the trade is only open for 1 minute or less.

Some are designed for longer term positions which can make larger gains - but at higher exposure because your trades are open for longer.

The fact is that 3 robots (at least) lessens your risk. Think about it.

All 3 robots are fed the same data which they analyse according to their programmers expertise. This same data will be evaluated slightly differently just like their human programmers will. After all, each programmer is telling their robot to weigh each piece of information a certain way and to a certain degree.

Like, yes a currency will rise in value if that country's interest rates are announced to rise. But each robot will give a slightly different weighting to the that news.

Of a large number of variables that must be analysed and given a weighting, each robots assessment will compound these differences and form differing opinions.

They may each have a different currency focus, a slightly varied assessment of market news/data and not the same trigger points in their design.

The same data fed to them all may alert them all to a trading signal. But the trigger point may not be reached with 1 or 2 of them, and profits made by the 3rd one.

If they all agree (on whatever currency pair they mostly work with), then all 3 make you money and you are extra profitable.

But if you only have 1 advisor, with its focus on the EURUSD and it misses a great opportunity with the British Pound then the profit is not made.

If 2 make the right decision, and 1 does nothing - no opportunity is lost and you are still in the money.

Really, the worst case situation is if they all misread the market. The old adage of "3 heads are better than 1" applies here.

Go with 3 different robots. Put the variations in their programming to work for you.

There cost is remarkably cheap. Their combined potential for profit should not be overlooked.