These 3 tips on EA risk management are truly the “secret” to building wealth by running robots in Forex. As I have said in previous posts, EAs are not plug and play. They need to be monitored on a regular basis. Let’s elaborate on the management steps discussed in other posts.
1. Improve your skills and knowledge of Forex trading to a level you are comfortable with. If you are a complete novice trader, managing EAs is not recommended. EA management is beyond the level of the novice trader who doesn’t understand the Forex market or even how to manage simple trades. Take a trading course and build experience with a live account for several months before venturing into the world of robot trading.
2. Find an experienced EA mentor to guide you through installation and setup. Even after you’ve reached the level of an intermediate Forex trader, it’s recommended that you take a robot trading course. The skills and knowledge required for EA trading go above and beyond what’s required for manual trading.
3. Decide how much money you’re willing to lose if things goes wrong and don’t invest more than that. Of course, this also applies to manual trading, but is often not considered by the average person who is new to Forex trading. Every story I’ve ever heard from any professional trader is about losing money when they started. It takes time, patience and discipline to get to a level where you can live on the income from trading Forex.
If you follow these 3 tips on EA risk management, rest assured you will find success with using EAs in your Forex trading account. Just be patient and be willing to learn. EAs are not the “holy grail” and certainly not a get rich quick scheme. Managed correctly, trading robots can generate substantial income over a period of time.
Why should you even consider robot trading? We will look at some of the advantages of using EAs in the next post. Bookmark this site and check back often.