This all useful information to know, but it probably doesn’t give you a direct answer about what is the best way to operate your forex robot: On autopilot or in conjunction with your own trading ideas and instincts. Let’s take a deeper look at what strategy is best.

Is It Even Possible For A Robot To Work Not On Autopilot?

The short answer is “yes.” There are several forex robots on the market today that function kind of like forex signal services in that the trader must be present to not only see the trade the forex robot is recommending, but also to manually enter the trade himself. A lot of the forex robots that do this in MetaTrader 4 will give the trader the option of declining or taking the trade by using a box that pops up with the recommended trade inside of it. This is advantageous for multiple reasons. First, the trader can see how the forex robot works in a live environment without actually risking any money. Just keep a record of the trades the robot recommended that you didn’t take to test its proficiency.

Second, this way of testing a forex robot doesn’t involve the potentially skewed results that can occur in a demo account or through backtesting. Overall, this is probably a better avenue for more seasoned traders to explore because they will have a better sense of what trades to take and which ones to pass on than a rookie forex trader does.

Autopilot, Auto Profits?

Some forex robots are in fact quite adept at generating pips in the autopilot setting. However, traders should make sure their forex robot automated trading fits their trading. If your forex robot puts you in 10 trades per day while you’d prefer three or four, tweak its settings. We favor the autopilot setting in forex robots for new traders or those investors that cannot commit to trading at least a couple of hours a day.

The first technique is called over writing, so let’s take a look see how it works. Before we start there is one difference between UK equity options and US equity options. In the UK one option contract relates to 1000 shares, but in the US one option contract relates to 100 shares of stock.

Imagine you have a portfolio of shares that you have held for some time and these are mainly UK ‘blue chip’ companies. One of your shares is British Airways which you have held for some time, and you have 1500 shares bought at 200p. The market price at the moment is 365p per share. It is June and you decide to look at the current option chain for the next expiry period which is September. The option expires on the 15th September. You look at all the strike prices available and see that there are contracts at 330p, 360p, and 390p. You check the premium of the contract at 390p and see that the premium is currently 16p. You decide to sell ONE contract for which you receive a premium of 1000 x 16p = £160. (the premium is multiplied by the number of shares for one contract i.e. 1000). Please note – you still have 500 shares left in your portfolio as you do not have enough to write a second contract. You have now sold 1 contract which obligates you to supply 1000 BA shares at 390p on or before the 15th September (Amercian Style Contract) to the owner of the contract if exercised in the period. In return for this you have been paid a premium of £160 which is yours to keep whatever the outcome of the contract. OK – lets look at the possible outcomes of this contract as follows:

Outcome A – the company becomes a takeover target and shares jump to 520p

In agreeing to the contract at 390p per share, you have lost out on the takeover news and have missed the opportunity of ‘making’ 1300 (130 x 1000) on your share holding. This is the downside of writing a call option on your shares, that you could miss out on a rise in prices during the contract period. This is undoubtedly true, however there is no guarantee that you would sell your shares at this point, in other words it is only a paper profit had you kept them. The £1300 lost ‘opportunity’ profits are offset by the premium you have received to £1140.

Outcome B – the share price falls to 295p as competition increases in the industry

The price has fallen during the period, and the contract expires. Whilst the price has declined by 65p, this is partly offset by the premium you have received, reducing your ‘paper loss’ to 49p per share. You still retain your shares and any future dividends.

Outcome C – the market is quiet and the share price closes at 390p

You have made a small ‘paper profit’ here, and a real profit of £160.You have kept your shares and any future dividends. The reason you would probably keep your shares is that with dealing costs etc it would not be worthwhile for someone to exercise, although you can never be sure. I have been exercised when the strike and market price close at the same price, but I have also been left unexercised with prices very slightly above the strike. It depends how your broker closes out positions and reconciles their contracts – sometimes you may be lucky, other times not.

Now, with B and C, you still retain your shares so what might you do? – write another call to earn some more income. You look to the next series (probably Dec) and write another option earning more income. With B, where the share is now trading at 295, you might look for a strike at 320 – 340, and with C, probably around 430 – 440. And so on, until on one contract you will be exercised. The most options I have written on the same block of shares is 4! Finally on the 5th contract the price went up and I was exercised. Please remember it is possible to write a contract so that you have built in a loss. Suppose you purchased some shares for 250p which then declined in price , and you wrote a contract at 225p with a premium of 10p. If it was exercised you would be receiving 235p (225+10) for shares you had paid 250p. Now, on occasion I have done this deliberately where I wanted to get rid of the stock for some reason. PLEASE DON’T DO THIS BY ACCIDENT. There are lots of packages around that will give you a graphical display of the breakeven point – most of these are free.

Finally, I mentioned dividends a couple of times above. Naturally, whilst you hold the shares you receive any dividend payments from the company. You should be aware when dividend payments are due for two important reasons. Firstly you may decide not to write an option as a dividend is payable in the next few weeks and you decide to wait. Secondly If you do write a call and a dividend is due shortly, the likelihood of exercise is much higher right before a dividend payment. The perfect outcome of course is where you keep your shares, your premium, and a dividend is paid during the contract ! – it does happen.

The steps you need to follow for opening an auto trade mini forex account are quite simple. First you have to select a brokerage firm that is offering their services to open an auto trade mini forex account. Fill in some personal details like your name, address, contact number, e-mail address, and the specific type of account you like to open. After filling in this online query form, you can directly open your mini account. Many agencies now accept $50 to open an auto trade forex mini account, but in an extremely volatile market as forex and because of high leverage, it is better to invest at least $2000.

There are quite a few advantages of an auto trade mini forex account. The mini accounts are perfectly suited for those who are new to the forex market. The mini accounts trade in smaller contract sizes, which gives the traders the opportunity to trade with less risk or exposure to the market. This smaller trade size also helps the trader to build confidence. As the trading is completely automated, you can experiment with the features of the trading platform and judge the efficiency of the system.

As the pip value on any mini account is just $1 per pip, you can develop a disciplined trading strategy while handling an auto mini forex account. Moreover, you learn to overcome your tendency of emotional trading, which, at times, leads to irrational trading decisions. You also learn to limit losses and decide your entry and exit points.

Auto trade mini forex account gives you more staying power in the market. This enables you to take advantages of multiple opportunities without over-leveraging your account. Most of the auto mini forex account provides user-friendly trading software. It has all the interactive and useful features of a standard rapid execution from live, streaming prices.

In some currency pairs like EUR/USD etc., a one-pip movement in the exchange rate is equal to a one dollar gain or loss in the account value per lot. Usually the auto trade mini forex account offers a spread of 3 or 5 pips on most currencies. So, open an auto mini forex account to master the art of trading before venturing into the market with high volume of investment.

One thing about stock options is that they are cost efficient that is they are well capable of leveraging or borrowing money in order to increase returns. Another good advantage of it is that by spending less money also you can make almost the same profit. Once you are knowledgeable and have some experience, trading options can be a great way to make money.

As a beginner you should go for spread. Basically a spread is where you can purchase calls and puts. How to spread money is entirely dependent on how the market is swinging. Beside this buy only those options that don’t expire right away. It is because if it expired very quickly then you will not get the time to observe how your stock is moving.

Stock market is very risky and it needs lot of guts, especially for beginners. It takes time and experience to research the market as a whole. Many factors influence what happens in stock market everyday. Hence it’s necessary to have complete knowledge of market before making any move. By making a chart of earnings and losses you can easily figure out your areas of strong trader.

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Now for reason 6, let’s examine another indicator to help anticipate where the closing price of the stock will be headed at the end of day. We’ll be looking at the High Close Gap data.

Much like with reason #5, this information for Ford shares can be found within the

Let’s start with the summary information.

In figure 6a, a modified extract from the summary file, we can see that out of the 291 total occurrences in this category, there were

We also can see that out of the 172 occurrences, there were as many as 86 times when the closing price anywhere between $0.10 and $0.19 which can be confirmed by accessing the data in the detail file and then applying filters as shown by figure 6b below.

After entering the filtering criteria in the Custom AutoFilter message box and clicking the OK button, the line items that meet these selection criteria will be presented.

As we can see from the figure 6c that follows, the count of valid matches is 86 which is exactly the same as was indicated in the summary file.

And so as a result of the analysis we have gone through here, we can perform some simple calculations for day trading to predict the closing price at the end of the day. The sequence of steps followed would be:

Of course when day trading, the nearer the time to the closing bell signal, the more accurate the final price prediction can be.

Reason 6 also promotes the option of expanding the scope of metadata being analyzed by turning on, adjusting or turning off selection filters for this group as well as any other stock metadata group that is in the process of being analyzed.

To improve the accuracy of a prediction, this information should be reviewed at different point during the day. It always helps to perfect a prediction by using results reached by other analysis activities described in the other different reasons for using stock metadata.

When going through the entire process, for day trading it always helps to ask yourself questions like:

Over time, the more experience you have using this process, the simpler it becomes to make a closing price prediction. And with this day trading experience also comes an improving rate of prediction accuracy.

Will your accuracy levels using this process ever reach 100%? Probably not, but by going through this process a number of times, you will get better and improve over time. And when combined with other sources like stock charts and market news, it will help you develop day trading strategies to improve your stock market buy and sell decisions.

One last point to make – Before actually buying and selling stocks using this type of strategy, always practice using an online virtual stock market account or only execute your trades on paper.

Although taking this course of action won’t make you any money, it becomes a risk-free day trading approach that you can use. And of course, you won’t lose any money.

Having completed this section on using of reason 6, we are now ready to progress to some of the more controversial reasons for using stock metadata starting with reason 7:Using metadata statistics with more clues on how to time the market by using the twenty-six 15-minute time periods of the day.

The link to this next reason is included in the author’s biography that follows.

AND, it’s even easier to lose a lot of money trading. Learning what can help you to lose your hard earned money is just as important as learning how to make money trading. Better yet, learn both…

Ways to Lose Money Trading

Knowing how to lose money trading is very important. If you find yourself doing any of the above things, you should know that you are indeed on the INCORRECT path to trading success.

While avoiding the above ways to lose money trading is critical, simply avoiding those will NOT make you money trading. So what will? If you’re curious, here’s an article on “How to Make Money Trading.” It contains in simplified form what works in all markets, be it the stock market, the forex market, options, and even futures.

Use Only Risk Capital to Trade — “Money you can afford to lose” is called risk capital. This money is used specifically for speculation in the Forex market. So, if you lost all of your money in your Forex account, your lifestyle would not have to change.

If you trade with money you aren’t prepared to lose, this is called “scared money”. Scared money is the money you’re afraid to lose. The money that would cause you to experience the agony of many restless nights if lost.

You’re treading in dangerous territory if you can’t afford to lose the money in your Forex trading account. Even if a trading strategy is great, it might not give you the desired profit at the precise time you need it.

There are countless cases of new inexperienced traders depleting all of their hard-earned money on just one trade. Please don’t ever put yourself in such a vulnerable position. There is no excuse for losing everything because your trading strategy should always exit you out of a losing trade before any damaging losses.

Don’t Add to A Losing Trade — This is an easy mistake to make. Nobody is thrilled when they lose on a trade. You must realize that losing trades is a normal part of Forex trading and even the top Forex traders have had losing trades.

To “get a better average price”, new traders typically add to trades that are already losing. They think they’ll be able to at least break even when the market goes in the desired direction. Sadly, most of the time the market steadily moves further against them. Now the small manageable loss is large and catastrophic.

There are plenty of options to choose from. In fact, you can even opt to attend one of the many off line seminars that happen nationwide for those who are interested in learning more about Forex. There are also conventions which you can participate in and hear what the expert’s say when it comes to starting out as a newbie in the Forex market.

If you prefer to do things online and during the hours that are convenient to you then an online Forex school would suit your needs perfectly. There are many different ways through which you can increase your knowledge about Forex trading.