Forex robot users are always wondering if they can test their new forex robot out on a demo or simulated account. This is definitely possible and if your broker has told you that their platform works with forex robots then their demo accounts will likely work with your forex robot.

After you verify this information, your forex robots can then run wild in a demo account, trading with more money than you have to put into your live account, trading more than you probably want to and taking bigger losses than you would accept in a live account.

Of course, all of this means nothing since your forex robot is trading with faux money. So there you have it, a risk-free audition for your forex robot. But are you cheating yourself? Are you expecting your forex robot to churn out the same results in a live account as it has been in a demo account? Do you think that demo accounts or representative of what real trading is like? If you answered yes to any of those questions, you may need to rethink your forex robot testing strategies.

Do Not Be Cheap

Think about it this way. You committed capital to buying forex robots and you’re committing capital to your trading account. Perhaps you have even invested in a new computer to trade with. All of these are investments in your trading and in yourself. And you should spend time trading in a demo account before you buy your forex robot. Demo accounts are a fine place for an individual trader that does not intend to use a forex robot to hammer out some strategies and learn a lot about forex trading. In fact, no rookie trader should just run into forex trading without trading in a demo account first.

The message here is since you have already shelled out a little bit of capital, why not spend a couple of hundred extra dollars and fund a mini or micro forex account. This is a far better way to see what your forex robot is really made because even though the amount of capital in the account is small, it is still real. As we have said countless times in the past, the only way to test a forex robot is to have it trade real money.

Not Taking A Risk May Be The Biggest Risk Of All

You may be looking at opening a mini forex account for your new forex robots to trade as a risk and to a degree, it is. That said, it is actually far riskier to let your forex robot run wild in a simulated account and then put it straight to work in a standard forex account. Your forex robot may have done things in the demo environment that you would not want it to in a live account, but if you weren’t watching and reviewing the simulated trades, you could be in for some big surprises when that robot hits your live account.

Author Bio: Retired Canadian Economist. My main activity since Winter 2006 is trading Forex. I’ve been trading currencies online with the help of EA’s (BTW, the best source for EAs is Forex Robots) and I currently manage trading accounts at two Forex brokers in the US and in UK respectively

Category: Finances
Keywords: Forex Robots, Day Trading, Forex, Forex Brokers, Finacial Advisors, Expert Advisors