In the third episode of the Forex Robot Nation podcast we discuss testing and winning in 2020.
Many traders still put too much emphasis on backtesting or strategy testing. While this can be helpful, it is not a true determination of past trading results when dealing with advanced automated trading programs that use live data. There are some robots that can still be backtested completely, but these are less advanced systems.
The bigger companies all rely on live data, and a DLL which allows a team of analysts to intervene, adjust and ensure you avoid losses. So, when you purchase a robot, don’t rely too heavily on the strategy test results or you may be doing yourself a disservice.
The second topic discussed in the podcast was about following directions properly. This may seem simple to you, but you’d be surprised how many people will use a robot the wrong way, and then blame the robot.
My favorite program is Forex Fury, and I see many bad Myfxbook accounts from traders following none of the necessary guidelines. If a vendor gives you a set of rules, and you choose not to follow them, you are taking a risk. If you understand how a system works, and you want to take those risks, that’s fine. Though, if you are a new trader with little trading experience, you should probably follow most of the advice provided by the vendor.
Those are just a couple of ways to ensure you are trading better in 2020. Enjoy the podcast.