Trading robot in practice using a variety of strategies when execute trading orders. These strategies have risk levels each. Generally, the higher the risk the greater revenue potential profit.
An example of a risky trading robot is the martingale strategies and averaging. With these strategies, deposit your account may be immediately drained if not careful. Therefore, that risk does not exceed the benefits, here are suggestions and tips to follow when you use automated trading systems at high risk.
1. Trading account with cents
High-risk trading robot should only use limited funds on your account Mon only. If a trader uses a standard account (1 lot = 100.000 units), the threat of each position to touch the limit margin call will be very high, if the resilience of capital is not big enough.
At least, with the lot size small, high-risk trading robots can have more opportunities to close the position above the profit loss. Once again, with losses to minimize cents account minimize the size of the lot.
2. use the maximum Leverage
Maximum leverage is needed to increase the resilience of capital. Practical, high-risk trading robot on average takes position to the floating hundreds of pips until finally can close the position with a profit. This is the reason why it is recommended to use the leverage of 1:200 above.
Technically, the high leverage allows trading robot to open the position with a value of lots as small as 0.01, although your capital limited. In contrast to the general practice in which traders thus instead open the lot value greater than 1 on high leverage.
3. Follow the instructions of usage
Usage instructions are often ignored by traders, whereas all sorts of important information listed on it. As a result, errors in operating high-risk trading robots resulted in a margin call.
Follow the instructions of usage such as recommendations for a minimum deposit, lot size, target pair, and so on. The important points to note, because the developers have really set the appropriate trading robot setting these guidelines.
4. Performance Tests using the demo account
Before using the trading robot in the real account, be sure to test performance with backtest method on a demo account. Backtest test aims to find out the indication-an indication of the performance of trading robots such as the drawdown, the ratio of profitability, the number of opening and closing positions, etc.
The backtest results, you can compare actual performance with what was advertised by the developer of high-risk trading robot. If a trader is in compliance, please test again with the forward test until at least one month on demo accounts anyway to really be sure.
5. Withdraw the profit on a regular basis
High-risk trading robot is indeed able to promise big profits, but also because of the risk of the same height, we recommend that you secure the funds in your account before trading robot of acting.
Ideally, the attraction of funds on a regular basis until a number with the initial deposit. In essence, traded funds with a trading robot, later will only use money profit results.
6. use the VPS server
Imagine when trading robot will open or close position, suddenly the internet provider doing maintenance a snap, so that the internet connection is disconnected. Due to the personal use of the internet, obviously you will suffer losses due to the trading robots could not complete its task.
That's the reason why a VPS server is the best medium for trading robot. That way, you don't have to worry anymore because of unstable internet VPS servers operate 24 hours nonstop.
7. Trading with low spreads
Trading account with low spreads his law is mandatory for trading robot automated trading systems, especially with a multi position strategy. When trading robot mounted in an account with low spreads the more positions opened, the smaller the costs of dependents.
Ideally, the floating spreads start from a fraction of a pip (0.1 to 0.5). With the value of the floating spreads, trading robot can adjust easily, can open positions at any time without great cost burdened.
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