How Do You Make Your Forex Robot Work In The Real World

This is the hardest part of trading and much more of a challenge than the actual trading system itself. When I get together with other automated system creators, the conversation is not focused at system strategy, but rather on forexbrokers! ECN/STP Vs DEALING DESK What you are about to read is critical to the success of your robot. If you are a novice trader then you will not be aware of what professional traders already know. Forex does not have a centralized exchange, so when you trade, the trading environment will be created by your forex broker. Some forex brokers (most) are dishonest! They will create an environment and they will trade against your positions. If you are winning too much they will actively hunt out your stops and trigger them to make sure they are not losing any money. They make their money by having the majority of their clients losing money most of the time!!! Their business model does not work if everyone was winning and making money. So it is not in their best interest to let you win. This means they will literally do anything they can to take you down and you will be banned from trading with them!!! Sad, but this is the absolute truth! ECN/STP forex brokers work on a completely different model. They are making their money by charging commission on each trade or from the sheer huge volume of traders using their services. So they do not need to trade against you as they make money in other ways. This means that most ECN/STP forex brokers are honest. (Notice I said most!) So to summarize; there are two types of brokers. Dealing desk or ECN/STP. An ECN/STP broker will not interfere with your trades as they make their money in other ways. STP = Straight through processing. What this means is that your trading order will be placed straight through to the liquidity pool rather than being placed through a dealing desk. A Dealing Desk will trade against your positions and the more you win, the more you are red flagged and in the long-term you will be taken down! So you only want to use your trading robot on an ECN/STP forex broker.