Forex Robots & Liquidity

The Forex market trades over $3 trillion every day and is open 24 hours a day and 5 days a week. Large international banks and hedge funds are speculating in the Forex market every day. The market trades from  20:15 UTC on Sunday until 22:00 UTC on Friday. Of course, trading volume is greatly enhanced because of the tremendous leverage allowed in the Forex market. Trading in London accounts for more than a third of the volume.

You would think that liquidity would not be a consideration with a Forex robot in the largest and most liquid market in the world.

Some Forex robots’ default settings limit trading to a few hours when trading volume and volatility is lower. The reason for this setting is to minimize false signals generated from an over volatile trading environment.

Take the very popular Forex robot or EA, Fapturbo. I understand they have sold over 70,000 copies since they launched a couple of years ago. If just half of the ones sold are operating, you have a substantial number of traders engaged in a short, low volume, low volatility period in the market. That could negatively impact liquidity and results.

If you are evaluating Forex robots, most will give you 60 days to put it through its paces. You should at least evaluate Fapturbo as it has had a decent track record, but be mindful of the trading window that they recommend.

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