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Volatility Adapting Forex Robots Show Promise
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Forex trading is generally characterized by periods of high volatility followed by periods of lower, more stable volatility. On the other hand, periods of  low volatility tend to be  followed by periods of high volatility.

This tendency is can be seen in the familiar patterns on charts when from seeing a currency pair move sideways in a narrow trading range it will suddenly burst  out of the consolidation and form a new price trend on higher volatility.

Only the most experienced traders know how to adapt their trading strategies to manage the opportunities presented by this changing volatility. However 90% of traders don't and tend lose as a result of misreading the market pattern. The newer Forex Robots on the market have recognized this problem. The developers of  these robots  have built in a market adapting algorithm called RCTPA which stands for Reverse Correlated Time & Price Analysis. This code built into the software analyses historical price performance to predict what will happen in the next 2 to 4 hours. The program has a 96% accuracy rating based on back tests  

This  is the start of a new generation of intelligent Robots built on the best automatic traders used in the big Banks. While some of the early Robots were very successful at running in the market for which their strategy built around, traders using a single  market robot found they gave up all their gains when market conditions changed from volatile to less volatile or via versa . Adaptive Robots, based on artificial intelligence algorithms have fixed this

So why are Adaptive Robots so important? First you need to understand the variety of price patterns that can occur for a currency pair. Due to macro economic variables a currency pair might exhibit an extended trending pattern where one side of a currency pair gains significant strength vs. it's opposite e.g. the Yen strengthening strongly against the British pound from July 2008 to January 2009. This is called a trending market and a Forex Robot designed for a strong trending GBPJPY would have done very well at this time.

However at some point it time a trending pair will reach equilibrium as we saw from the end of January 2009 when the currency moves into a more sideways choppy pattern for GBPJPY. This is called a ranging market. The result was that a Forex Robots coded to perform in the trending market will make a number of false trades expecting the trend to continue. The longer the market ranges, the more money will be lost to bad trades.

This is where the new adaptive Forex Robots come into their own.

Why should you look for in an adaptive robot?

·         Should use the latest multi market adapting technology

·         Designed by Forex Experts and properly tested over a long time period

·         Superb profitability based on testing by the makers

·         Price around USD100

·         60 day money back guarantee

If you are new to Forex Trading you should think about using a Forex Robot to help ease you into the market to help with your early trades. It will get you some profits while you learn about Forex. Forex Megadroid is on test at http://www.forexrobotstest.com

Article Source: http://EzineArticles.com/?expert=John_R_Harker

John R Harker - EzineArticles Expert Author

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This article has been viewed 39 time(s).
Article Submitted On: April 30, 2009



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